Fixed-income management

The fund’s fixed-income investments are allocated 70 percent to bonds issued by governments and related institutions and 30 percent to securities issued by the corporate sector.

Government bonds

The investments in government bonds are distributed according to the economic size of a country, as measured by its gross domestic product. Norges Bank Investment Management also considers the strength of a country’s public finances when investing in government bonds.

The majority of the investments are in developed countries, with a high percentage of government bonds denominated in euros, dollars, pounds and yen. Around 10 percent of fixed-income investments are in government bonds in currencies from emerging markets. These bonds generally have an investment grade credit rating.

Corporate bonds

The investments in corporate bonds include debt issued by companies as well as covered bonds, or debt issued by banks that are secured by a portfolio of mortgage loans. Corporate bonds normally provide a higher return than government bonds.

All corporate bond investments are made after a credit assessment, either external or internal. Holdings in non-investment grade bonds are targeted to not exceed 5 percent of the overall fixed-income portfolio.

The fund's largest bond holdings

As at 31 December 2020. Millions of kroner.

Issuer Country Holding
IssuerUnited States of AmericaCountryUSHolding717,935
IssuerJapanese governmentCountryJapanHolding294,195
IssuerFederal Republic of GermanyCountryGermanyHolding138,176
IssuerUK governmentCountryUKHolding87,746
IssuerFrench RepublicCountryFranceHolding72,442
IssuerSpanish governmentCountrySpainHolding51,345
IssuerAustralian governmentCountryAustraliaHolding41,065
IssuerSouth Korean governmentCountrySouth KoreaHolding36,045
IssuerCanada Mortgage & Housing CorpCountryCanadaHolding31,675
IssuerItalian RepublicCountryItalyHolding31,261
IssuerGovernment of CanadaCountryCanadaHolding31,242
IssuerMexican governmentCountryMexicoHolding24,444
IssuerBank of America CorpCountryUSHolding17,648
IssuerGovernment of IndonesiaCountryIndonesiaHolding16,785
IssuerGovernment of DenmarkCountryDenmarkHolding13,805
IssuerProvince of Ontario CanadaCountryCanadaHolding13,643
IssuerGoldman Sachs Group Inc/TheCountryUSHolding13,575
IssuerGovernment of IrelandCountryIrelandHolding13,127
IssuerMorgan StanleyCountryUSHolding12,519
IssuerGovernment of South AfricaCountrySouth AfricaHolding12,475

Holdings in fixed-income markets

Percentage of market value of bonds in the benchmark index

Source: Bloomberg Barclays Indices, Norges Bank Investment Management

Last saved: 25/02/2021

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