Norway's $2.3 trillion sovereign wealth fund wants to sharply reduce its holdings of U.S. Treasurys as part of a wider overhaul of its bond portfolio, shifting more money toward corporate debt, mortgage-backed securities and other assets offering higher returns.
Norges Bank Investment Management, which runs the world's largest sovereign wealth fund, recommended reducing government bonds to 50% of its benchmark bond index from 70%. The change would gradually lower U.S. Treasurys from 34.1% to 21.9% of the fixed-income benchmark, while euro-area government bonds would fall from 16.8% to 14.1%, according to the fund's recommendation to Norway's Ministry of Finance.
