FRANCE - The €31.1bn French Pension Reserve Fund (FRR) continued its comeback from the "brutal" mid-year market correction as it increased assets under management by €1bn in Q4.
The fund could not match it's third quarter return of €1.5bn though. The result means its assets increased by €4.5bn for the year ended December 31, 2006.
"Despite the brutal correction in the stock markets observed in the second quarter of 2006, the FRR continued throughout the year to capitalise on its equity investments, which it reinforced at the end of last spring," the fund said in a release.
The fund’s annualised performance since inception in June 2004 was 10.5%, net of all operating, financial and administrative fees.
The FRR modified its strategic allocation in May last year, making its first allocations to real estate, infrastructure and commodities in a bid to diversify risks and achieve a better geographic investment mix - a shift which is still underway.
"This structure continues to move closer to the new strategic target set by the FRR supervisory board," the fund said. "The level of monetary assets should decrease as the fund continues to diversify its investments."
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).
The Transfers and Re-registration Industry Group (TRIG) has given its support to an initiative which aims to complete occupational pension transfers within three weeks.
Scottish Widows has completed a bulk annuity deal for the Hitachi UK Limited Pension Scheme.