NORWAY - The Government Pension Fund - Global, also known as the Oil Fund, said its end of year results for 2008 were the worst in its history, with a total loss of -23.3%.
Weak returns on the equity portfolio of -40.7% led the overall loss. Fixed income investments lost 0.5%. As a result, the fund said once management costs and inflation were deducted, its annualised net real return since 1998 had fallen to 1%.
Governor of Norges Bank and chairman of the fund's executive board Svein Gjedrem said: "The financial crisis has dealt a heavy blow to our investments in global equity and fixed income markets. The annual real return since Norges Bank commenced the operational management of the Government Pension Fund - Global is now just 1 per cent, which is well below the long-term return of 4 per cent assumed by the State.
Gjedrem continued: "The fund has not reaped a risk premium in the equity market as we had expected."
In light of the results, the fund added it would strengthen its risk management capabilities, focusing in particular on supplementary methods for measuring risk, although no more details were available.
The Government Pension Fund - Global, which pursues an equity-heavy investment strategy (49.6% of the portfolio), now holds an equivelent of 0.77% of all "global equity markets".
Last week, the country's domestically focused scheme, the Government Pension Fund - Norway, revealed it lost over 25% during 2008, ending the year with assets under management of NOK87.8bn, down 25.1% from NOK113.3bn in 2007 (Globalpensions.com; 5 March 2009)
Despite the losses, the fund said active management of its portfolio had helped it outperform its benchmark by 3.7%, or NOK4.3bn.
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.