Norway's $1 trillion fund told to sell emerging market bonds

The fund will cut bonds from 10 emerging markets in its index, including Mexico, South Korea and Russia, but not India

Norway’s $1 trillion sovereign wealth fund got the go-ahead to cut government and corporate bonds from emerging markets in an overhaul of its $310 billion fixed-income holdings.
 
The decision, announced on Friday by the Finance Ministry, comes after more than a year of deliberation. The fund will cut bonds from 10 emerging market countries in its index, including Mexico, South Korea, Russia and Poland, and will also be limited in its investments in emerging markets outside the index, such as Brazil and Indonesia.
 
The fund will still have leeway to invest up to 5 per cent of its