The Norwegian Government Pension Fund Global reported a negative return of NOK155 billion, or -5.4%, in the second quarter, dragged down by a decline in global equity markets. The fund was made up of 59.6 percent in equities and 40.4 percent in fixed-income securities at the end of the quarter, which respectively gave returns of -9.2% and +1%. The fund’s worst peforming stock was oil producer BP (BP) whose share price halved in the second quarter after the Gulf of Mexico spill.

"The spill put the spotlight on safety standards in the oil industry," said Yngve Slyngstad, Chief Executive of Norges Bank Investment Management, NBIM. "The biggest stock market drop was in Europe, where the fund has about half its equity investments," said Slyngstad, adding that the decline was largely driven by concern over high sovereign debt in some European countries, funding challenges for banks and fears of a new economic slowdown.