The Group’s investment portfolio includes all investment funds in the Group, except for invest- ment funds in the Pension and Savings and Retail Bank segments. A large part of the management is outsourced to external managers, while the Group’s investment function concentrates on asset allocation, risk management and the selection of managers. Direct property investments are made via the 50% owned property company Oslo Areal.
The investment portfolio is split into two parts: a match portfolio and a free portfolio. The match portfolio is intended to correspond to the Group’s technical provisions. It is invested in fixed-income instruments with a duration matched to the duration of the technical provisions.
The free portfolio consists of various assets. The allocation of assets in this portfolio must be seen in connection with the Group’s capitalisation and risk capacity, as well as the Group’s risk appetite at all times. Results from the use of derivatives for tactical and risk management purposes are
assigned to the respective asset classes, depending on whether the derivatives used are equity or
fixed-income derivatives. Generally, currency risk in the investment portfolio is hedged close to 100 per cent, within a permitted limit of +/- ten per cent per currency.
At year-end 2016, the investment portfolio totalled NOK 54.0 billion. The financial result was NOK 2.2 billion, which corresponds to a return on financial assets of 3.9 per cent.