Fixed Income Management
The fixed income investments are allocated bonds issued by the government and related institutions and securites issued by companies. About 30 percent of the funds are invested in fixed income.
Sovereign wealth 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 bond
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
Sovereign wealth 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.
Sovereign wealth largest bond holdings as at 30 June 2023. Millions of kroner.
Issuer Government of United States of America
Issuer Government of Japan
Issuer Government of Germany
Issuer United Kingdom Government
Issuer Government of France
Issuer Government of Canada
Issuer Monetary Authority of Singapore
Issuer Government of Italy
IssuerEuropean Union
Issuer Government of the Netherlands
Holdings in fixed-income markets
Percentage of market value of bond in the benchmark index as at June 2023
Time period
Since inception
Last 5 years
Last 10 years
Last 15 years
Source: Bloomberg Barclays Indices, Sovereign wealth Limited