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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

Our investments in government bonds are distributed between countries according to the size of their economy as measured by GDP.

Most of these investments are in developed markets, with a high percentage denominated in euros, dollars, pounds and yen. These bonds will normally have a high credit rating and be very liquid. The mandate also permits up to 5 percent of fixed-income investments to be in bonds from issuers in emerging markets.

Corporate bonds

The fund invests not only in bonds issued by companies but also in covered bonds, which are issued by banks and backed by a portfolio of mortgages. Corporate bonds normally produce higher returns than government bonds.

All investments in corporate bonds follow an internal or external credit assessment. The portfolio is managed with the aim of ensuring that bonds with a credit rating below investment grade do not exceed 5 percent of the fund’s total bond holdings.

The fund's largest bond holdings

As at 31 December 2023. Millions of kroner.

Issuer Country Holding
IssuerGovernment of United States of AmericaCountryUSHolding1,344,708
IssuerGovernment of JapanCountryJapanHolding362,637
IssuerMonetary Authority of SingaporeCountrySingaporeHolding204,109
IssuerGovernment of GermanyCountryGermanyHolding201,925
IssuerUnited Kingdom GovernmentCountryUKHolding152,941
IssuerGovernment of CanadaCountryCanadaHolding85,209
IssuerGovernment of FranceCountryFranceHolding79,170
IssuerGovernment of ItalyCountryItalyHolding60,385
IssuerEuropean UnionCountryInternational OrganisationsHolding57,757
IssuerGovernment of the NetherlandsCountryNetherlandsHolding52,858

Holdings in fixed-income markets

Percentage of market value of bonds in the benchmark index as at 31 December 2023

Source: Bloomberg Barclays Indices, Norges Bank Investment Management

Last saved: 27/02/2024

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