Norway’s Authorities Pension Fund World, the world’s largest sovereign wealth fund with a market worth of about NOK11.08 trillion (RM5.48 trillion), has purchased NOK11.34 billion (about RM5.44 billion) price of Malaysian authorities bonds on 31 Dec 2020, in accordance with newest updates by the Norwegian central financial institution’s asset administration unit.
“The fund’s fixed-income investments are allotted [with] 70% to bonds issued by governments and associated establishments, and 30% to securities issued by the company sector.
The investments in authorities bonds are distributed in accordance with the financial measurement of a rustic as measured by its gross home product (GDP). Norges Financial institution Funding Administration additionally considers the energy of a rustic’s public funds when investing in authorities bonds.”
Norges Bank Investment Management is the asset administration unit of Norwegian central financial institution Norges Bank, which has been tasked with managing the Authorities Pension Fund World, sometimes called Norway’s oil fund, Norse Financial institution Funding Administration stated on its web site.
Based on Norges Financial institution Funding Administration, nearly all of the Authorities Pension Fund World’s fixed-income investments are in developed nations, with a excessive share of presidency bonds denominated within the euro, greenback, pound or yen.
Round 10% of the fund’s fixed-income investments are in authorities bonds in currencies in rising markets, Norges Financial institution Funding Administration stated.
“These bonds typically have an funding grade credit standing,” it added.
For 2019, Norges Financial institution Funding Administration stated the Authorities Pension Fund World’s Malaysian fixed-income asset investments, comprising solely Malaysian authorities bonds then, rose to NOK16.98 billion from NOK16.96 billion a 12 months earlier.
In US greenback phrases, the Authorities Pension Fund World’s Malaysian fixed-income asset investments, nevertheless, fell to US$1.93 billion in 2019 from US$1.96 billion a 12 months earlier, Norges Financial institution Funding Administration stated.
Based on Financial institution Negara Malaysia’s (BNM) web site and the edgemarkets report, Malaysian Authorities Securities (MGS) embody the standard MGS and Islamic-compliant Authorities Funding Points (GIIs).
Newest updates by BNM present that the MGS pay an annual rate of interest or coupon of between 2.632% and three.955%.
The three-year MGS pay a coupon of three.48%, the five-year MGS provide 3.955%, the seven-year MGS pay 3.733% and the 10-year MGS provide 2.632%, in accordance with the central financial institution.
BNM’s financial coverage committee on March 4, 2021 determined to take care of the nation’s in a single day coverage price (OPR) at 1.75%, it stated in an announcement that day.