ARDNF’s fixed income portfolio is primarily comprised of sovereign issuers, government agencies, international organizations, and corporate bonds. These investments are strategically diversified across sub-portfolios denominated in U.S. dollars, euros, British pounds sterling, Chinese yuan, Turkish lira, and Australian dollars. Each sub-portfolio is assigned a corresponding benchmark index representing its target return.
The Fund’s benchmarks serve as the foundation for determining investment scale and allocation, and act as the key reference points for evaluating performance. To ensure that ARDNF’s returns remain aligned with these benchmarks, investment decisions are made with careful consideration of each benchmark’s allocation and defining characteristics.
In addition, the Fund utilizes derivative financial instruments for risk management and efficient portfolio management purposes. To enhance risk-adjusted performance relative to established benchmarks, continuous analyses of market developments and macroeconomic trends are conducted. Based on these assessments, tactical adjustments are implemented to ensure the portfolio remains resilient to changing market conditions and economic outlooks.
Classification of SOFAZ’s Fixed Income Instruments Portfolio by Credit Ratings
Classification of ARDNF’s Fixed Income Instruments Portfolio by Maturity
Investment distribution by currency
| Currency | Investment amount (million USD) | Percentage share |
|---|---|---|
| US Dollar | 8,792.76 | 40.17% |
| Euro | 8,304.40 | 37.93% |
| British Pound Sterling | 2,686.82 | 12.27% |
| Chinese Yuan | 1,634.98 | 7.47% |
| Saudi Riyal | 210.50 | 0.96% |
| Turkish Lira | 143.35 | 0.65% |
| Australian Dollar | 118.45 | 0.54% |
