FRANCE - Investment returns at the Fonds de Réserve pour les Retraites (FRR) are up 15% for 2009 on the back of the strong rebound in the equity markets.
The positive performance brings FRR's total assets to €33bn (US$45.3bn) from €27.7bn at the end of 2008, when the fund lost 24.9% of its value (Global Pensions; February 2, 2009).
Equities gained 11.3%, fixed income assets gained 3.4% and commodities gained 0.5%. Annualised performance is up to 2.8% from 0.2% at the end of 2008.
At the end of 2009, FRR had 46.9% allocated to equities, 27.5% to fixed income, 10.6% of cash awaiting investment, 9.5% to inflation-linked bonds, 3.9% to commodities and 1.6% to real estate.
In June 2009, the fund's supervisory board opted for a set of investment guidelines, which included a revised strategic asset allocation.
According to the June document, FRR's target portfolio sees 45% allocated to equities, 25% to fixed income, 20% to inflation-linked bonds, 5% to real estate and 5% to commodities.
In addition, FRR revised its proxy voting guidelines for the asset managers exercising proxy voting rights in companies they invest in on behalf of FRR.
The main modifications include a request of paying greater attention to women inclusion in board elections and a demand for greater transparency with respect to employees' and managers' compensation systems.
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Pension Insurance Corporation (PIC) has invested £40m in debt issued by Scottish Borders-based Eildon Housing Association.