Investments
Investment restrictions
The investment activities are restricted to the following investment options:
Up until 2004, the proportion of index-linked investments was around 90 percent. Since then this percentage has steadily declined. At the end of 2010 the proportion of index-linked investments was 26 percent.
When the restriction to treasury bonds was abolished and the option of investing in covered bonds was opened in 2009, there was a big shift from fixed-income treasury bonds to covered bonds. The reason was that covered bonds yield a higher return at only a slightly higher risk compared with fixed-income treasury bonds.
At the end of 2011, the proportion of covered mortgage bonds was about 55 percent of the portfolio
Duration is a measure of the interest rate risk in the portfolio. By interest rate risk is meant the change in value of an interest-bearing security that occurs when the market interest rate rises or falls. A longer duration leads to a greater change in value at a given change in market rates.
In connection with the transition to a higher proportion of fixed-income investments, the duration has also been reduced in recent years.
- Sight deposit account at the National Debt Office, with nominal return based on the repo rate.
- Short-term deposits at a fixed interest rate at the National Debt Office with an investment period that can vary between one month and one year.
- Investments on the market in treasury bills, fixed-income bonds and index-linked bonds issued by the National Debt Office, and in
- Treasury bills issued in accordance with the Act (2003:1223) on Issuance of Covered Bonds.
Under the current investment rules, the Nuclear Waste Fund´s options for influencing the rate of return are limited to three parameters:
- Choice between fixed-income and index-linked investments.
- Choice between government bonds and covered bonds.
- Choice of duration in the investments.
Proportions of fixed-income and index-linked investments
Up until 2004, the proportion of index-linked investments was around 90 percent. Since then this percentage has steadily declined. At the end of 2010 the proportion of index-linked investments was 26 percent.
Proportions of treasury bonds and covered bonds
When the restriction to treasury bonds was abolished and the option of investing in covered bonds was opened in 2009, there was a big shift from fixed-income treasury bonds to covered bonds. The reason was that covered bonds yield a higher return at only a slightly higher risk compared with fixed-income treasury bonds.
At the end of 2011, the proportion of covered mortgage bonds was about 55 percent of the portfolio
Duration
Duration is a measure of the interest rate risk in the portfolio. By interest rate risk is meant the change in value of an interest-bearing security that occurs when the market interest rate rises or falls. A longer duration leads to a greater change in value at a given change in market rates.
In connection with the transition to a higher proportion of fixed-income investments, the duration has also been reduced in recent years.
Uppdaterad av: Anna Major, 2012-05-14 13.32
Kärnavfallsfonden, c/o Kammarkollegiet, Box 2218, 103 15 Stockholm, Tel: 08-700 08 00, Fax: 08-20 38 81, E-post: karnavfallsfonden@kammarkollegiet.se