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.

Holdings in fixed-income markets

Percentage of market value of bonds in the benchmark index

Source: Bloomberg Barclays Indices, Norges Bank Investment Management


The fund's largest bond holdings

As at 31 December 2018. Millions of kroner

Issuer Country Holding 
United States of America US                                     638,715
Japanese government Japan                                      237,179
Federal Republic of Germany Germany                                      106,116
UK government UK                                         64,844
French Republic France                                         47,998
South Korean government South Korea 43,366
Mexican government Mexico 42,594
Spanish government Spain 41,388
Italian Republic Italy                                         36,517
Australian government Australia                                         36,399
Canada Mortgage & Housing Corp Canada 31,785
Kreditanstalt für Wiederaufbau Germany 27,475
Government of Indonesia Indonesia 25,114
Brazilian government Brazil 23,284
Government of South Africa South Africa 21,139
European Investment Bank International organisation 19,530
Government of Switzerland Switzerland 18,757
Government of Canada Canada 18,275
Indian government India 17,007
Government of Malaysia Malaysia 16,958
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See all fixed-income 

The fund's total holdings are published annually with the annual reporting on the fund. The annual holdings as at 31 December are available from inception in 1998.