Novo Finance

Novo A/S’ financial investments comprise a portfolio of well-diversified assets. The overall guidelines for building and maintaining the financial investments are set out in the investment strategy and approved by the board of directors every year. The portfolio is constructed by a number of different asset classes and due to the long investment horizon of the Novo Nordisk Foundation and the fact that the Foundation has very limited external liabilities, the ambitions for overall return, and thereby also risk, is set at a relatively high level.

The asset classes in which Novo A/S invests are primarily liquid and comprise listed equities, Danish government and mortgage bonds, higher yielding credit and emerging markets bonds. Up to 20% of the portfolio can consist of illiquid assets such as private equity and real estate.

The portfolio of financial investments serves two purposes: Firstly, it fulfils a wish to spread the risk by diversifying the assets of the Novo Nordisk Foundation. Secondly, it represents a pool of liquid reserves, which can be used to support the companies in the Novo Group should that become necessary.

Click here to read the article on Novo's financial investments from the Annual Report 2008.