According to Vital’s finance director, Truls Tollefsen, its overall exposure to equities will increase from around 10 per cent to 20 per cent over the course of 2010. As it stands, around a quarter of the equity component of the fund is domestic companies and the rest international. The bulk of newly bought stocks will be from emerging markets. The company will fund the purchase by selling off a portion of its fixed income and money market exposure.

“We think that global developments mean there is a high probability of a good outcome. The world is definitely moving into a cyclical upturn,” said Mr Tollefsen. “We can see that the portfolio will have around 20 per cent equities again and that is what we are moving forward to do. If the markets behave normally, I expect to have reached this allocation before the end of 2010.”

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