Norway: sovereign wealth fund proposes to reduce the proportion of government bonds in its portfolio
US Treasury bonds are likely to be the hardest hit
The Norwegian sovereign wealth fund has proposed reducing the proportion of government bonds in its portfolio from $2,300 billion, with US Treasury bonds set to be the hardest hit.
According to a statement issued on Tuesday by Norges Bank Investment Management in a letter sent to the Ministry of Finance and published on its website, the proportion of public debt is expected to fall from 70 per cent to 50 per cent of the bond component of the portfolio.
As at 30 June, the fund held over $615 billion in fixed-income securities in its portfolio, of which around 59.5 per cent was invested in government bonds, according to the most recent data available on the organisation’s website.
The proposal to reduce this share to 50 per cent would result in a reduction of approximately 58 billion dollars in the total value of government bonds held.
