Fonds de Reserve pour les Retraites, Paris, recorded a loss of 5.16% in 2018, driven by a fall in equity markets in December.
The performance compared to a 7.16% return in 2017.
Assets fell 10.3% to €32.65 billion ($36.8 billion) as of Dec.31, an update on the fund's website said. However, FRR said in the update that the "recovery since the beginning of 2019 has enabled the resorption of nearly all the losses recorded in 2018."
Since 2011, the fund has returned an annualized 4.24%.
The overall performance of the fund was affected by an 8% decline in the performance of growth assets, which amounted to 56% of the allocation. The performance of the remaining allocation, bonds in FRR's hedging portfolio, fell 0.8%.
The funding level was 185%, FRR said, with a €15.03 billion surplus as of Dec. 31. That compared to a €16.5 billion surplus as of Dec.29, 2017, and a funding level of 183%.
"As a responsible investor, the FRR has initiated the renewal of the active management mandates of its portfolio by increasing its level of requirement regarding the integration of ESG criteria," the update said.
"To reflect its commitment to the ecological and energy transition, the FRR has decided to exclude companies whose thermal-coal mining or coal-fired electricity, heat or steam generation business exceeds 10% of their revenue" up from 20% previously, the update said.