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.
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 2019. Millions of kroner.
|IssuerUnited States of America||CountryUS||Holding701,616|
|IssuerFederal Republic of Germany||CountryGermany||Holding98,548|
|IssuerUK government||CountryUnited Kingdom||Holding72,793|
|IssuerSouth Korean government||CountrySouth Korea||Holding49,049|
|IssuerGovernment of Canada||CountryCanada||Holding30,640|
|IssuerKreditanstalt fur Wiederaufbau||CountryGermany||Holding29,123|
|IssuerCanada Mortgage & Housing Corp||CountryCanada||Holding26,781|
|IssuerGovernment of Indonesia||CountryIndonesia||Holding26,532|
|IssuerGovernment of South Africa||CountrySouth Africa||Holding20,303|
|IssuerGovernment of Russian Federation||CountryRussia||Holding20,238|
|IssuerGovernment of Belgium||CountryBelgium||Holding17,013|
|IssuerGovernment of Malaysia||CountryMalaysia||Holding16,984|
Holdings in fixed-income markets
Percentage of market value of bonds in the benchmark index
Last saved: 21/08/2019