Bonds: Norway's sovereign wealth fund plans massive reduction of US Treasury bonds
The $2.3 trillion fund wants to significantly reduce the proportion of government bonds in its portfolio. The capital is to flow into other forms of bonds.
Norges Bank Investment Management, which manages Norway's $2.3 trillion sovereign wealth fund, plans to reduce its holdings of US Treasury bonds as part of a portfolio overhaul aimed at improving returns. The fund's target allocation to government bonds is set to decrease from 70% to 50%, which could result in a reduction of nearly $80 billion in US Treasury bonds.
The fund currently holds around $215 billion in US Treasury bonds. The move is intended to diversify the fund's investments and is not a departure from the US dollar, with the overall allocation to dollar-denominated assets expected to remain around 50%.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
