Its portfolio invested in shares fell by 40

Funds, the most virtuous 2008 with des souverains à le plus de des fonds plus transparent sovereign à le plus de des fonds plus transparent le plus des funds plus transparent and le regard vertueux its ethical commitment, was also The overall portfolio of the Norwegian Petroleum Fund thus registered an underperformance of 23.3, to 333 billion. Its portfolio invested in shares fell by 40.7 and that invested in bonds has limited the damage with a decline of 0.5, but it contains a number of titles little liquid and depreciated.

Therefore, its annual performance was 3.4 lower than that of its benchmark index, representative of its risks. Its annual performance of long term (since 1998) fell to 2.9 and 1 off inflation and costs of management. "These results are not satisfactory, 2008 has been a dramatic year", has commented soberly Kristin Halvorsen, the Minister of Finance of the country.

Its most costly decision, the Fund was made in summer 2007. Shares time overall.

"Although the portfolio is diverse, the crisis has revealed that these strategies shared exposure to common risk factors", according to the annual report of Norges Bank, in charge of the management of this sovereign funds. Its Governor, Svein Gjedrem, acknowledged that the crisis had "revealed weaknesses in the active management of the Fund", but it remains "capable of overcoming and cash large oscillations that may occur in the markets."

Role "contrarian".

Reason of comfort otherwise satisfaction, he received, last year, 384 billion kroner (42 billion euros) of money, its strongest staffing annual, and this, despite the fall in the course of black gold. This money, invested it on stock markets, which resulted in an increase of 47.5 to 49.6 of the total of its assets invested in shares. Indeed, in late December, 40 of the shares held by the Fund had been acquired during the year. In other words, he acquired many actions during declining markets, a factor of significant support for the awards... It is also the manifestation of the role "contrarian" of certain sovereign wealth funds, which operate in reverse, from the "crowd".

Last summer, the Fund decided to expand its investment universe including more emerging stock markets. It thought, also, to invest in the debt-to-high performance (less well rated firms) and decided to renounce for the time being. Deference due, perhaps, the setbacks encountered by the Fund on these mandates including American bond (secured debt, securitisation...). He acknowledged having underestimated at the time, the liquidity crisis that hit these segments and their lack of decorrelation. Thus, he decided to drastically reduce the number of mandates granted to the external managers on obligations. Their size was also reviewed in decline.

Present in nearly 8,000 companies, the Fund has seen its share in the global market capitalisation climb from 0.49 to 0.77 between late 2007 and 2008. In Europe, it is the first European stock investor, number one in Paris. It has about 1.3 of the market capitalization of the European index Futsee. On six higher interests of the fund shares, four relate to oil groups, namely Royal Dutch Shell, BP, Exxon and Total. Other significant holdings include HSBC, Nestle, Vodafone, Novartis, Roche and E.ON. On obligations, its global market share is estimated at 0.5 and 1 on the Continent. The Fund remains a great enthusiast of German, British and Italian public debt. On the other hand as a burden, he drags a significant number of titles, depreciated, Fannie Mae and Freddie Mac...