11/03/2011
FRR has earned 3% returns since 2004
The French pension fund Fonds de réserve pour les retraites (FRR)'s annualised performance net of expenses (determined as at 31st December 2010) since it commenced investment operations in June 2004 is +3%1. The Fund’s performance over the year 2010 is +4.2%.As at 31 December 2010, the FRR’s assets totalled 37 Bn euros : - performance assets represented 38.8% of net assets (of which 32.3% equities, 3.2% commodities, 2.1% real estate and 1.2% emerging markets debts); - liability hedging assets accounted for 61.2% of net assets. Pension reforms in 2010 clarified the FRR’s liabilities which now entail 14 annual payments of 2.1 billion euros to the Caisse d’amortissement de la dette sociale –CADES– (2011 to 2024) and confirmed the lump sum contribution owed by CNIEG to the CNAV in 2020. The FRR therefore adopted its strategic allocation plan on 13 December 2010 with a view to meeting its liabilities and achieving as high as possible a return on its investments by 2024. The search for performance will be driven by its assets (equities and bonds of developed and emerging economies, high yield bonds, real estate and commodities) which represent 40% of its portfolio (37.5 Bn euros) as at the beginning of March 2011.
