Choice of a new benchmark for the Government Petroleum Fund's fixed income investments
23 August 2001
Background
In a letter to the Ministry of Finance dated 15 March 2001, Norges Bank recommended that the benchmark for the Government Petroleum Fund's fixed income investments should be expanded to include bonds with no government guarantee. In addition, the Bank recommended that the guidelines for the management of the Government Petroleum Fund be amended to ensure better adaptation to an expanded benchmark. Norges Bank proposed that the prevailing limits for investment in non-government-guaranteed bonds be changed from an absolute limit to a relative limit in relation to the portion of such bonds in a new benchmark. Furthermore, Norges Bank recommended that the Fund should be permitted to invest in fixed income instruments from all issuers satisfying the credit rating requirements and issued in any of the 22 accepted markets, irrespective of the issuer's home country.