10/01/2011
French FRR modifies investment strategy
p { margin-bottom: 0.08in; } Now that the French state pension fund, the Fonds de réserve pour les retraites (FRR), has been placed under the control of the public debt amortisation facility (Cades), the supervisory board at the institution has passed new guidelines for its investment strategy, Agefi reports. The pension reform law requires that the FRR pays Cades EUR2.1bn per year from 2011 to 2024. This liability will be funded with flows from investments in fixed income products, a large part of which are French bonds. The fund has launched a call for bids for two tenders, each of which would be divided into five five-year passive management mandates. The first of these, for about EUR12bn, will be invested in OAT. The second, for about EUR6bn, will be for bonds from developed countries, rated at least investment grade. The call for bids is open until 31 January. The portfolio of the FRR will continue to be allocated about 60% to fixed income, and 40% to “performance” assets. In this second category, the Fund will increase the amounts invested in open-ended funds, the newspaper reports.
