The Norwegian Bank’s Guarantee Fund invests in low-risk assets with the requisite liquidity to maintain the reimbursement deadline of one week.
The Fund is invested in government bills and bonds in countries with high credit quality and liquidity. All investments in foreign currencies are hedged to NOK. Counterparty risk is reduced by receiving collateral for all exposure.
The assets are managed by external fund managers. Middle Office is responsible for monitoring the management and risk of the fund.
The investment strategy is issued by the Board of the Norwegian Bank’s Guarantee Fund within the instruction given by the Fund’s statutes.