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.
PP has compiled a list of what to watch out for over the coming months.
Canada Life has signed a £351m bulk annuity contract insuring the pensioner liabilities of 2,510 members and dependents in the AA UK Pension Scheme.
In this week's Pensions Buzz, we want to know if you believe there is ever a case for combining retirement savings products with other savings products, and if the PPF levy for sponsorless schemes is appropriate for DB consolidators.