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Pension Funds

France’s FRR posts 7.16% return in 2017

Fonds de Reserve pour les Retraites, Paris, returned 7.16% in 2017, driven by its growth portfolio.

The performance compared to a 4.97% return in 2016.

Assets grew 1.4% to €36.4 billion ($43.4 billion) as of Dec. 29, said an update on its website.

Since 2011, the fund has returned an annualized 5.66%.

The majority of performance came from the fund's 56% allocation to growth assets, which gained 13% in 2017. The remaining allocation, to bonds in its hedging portfolio, returned 1.5%.

The funding level was 183%, said FRR, with a €16.5 billion surplus as of Dec. 29. That compared to a €14.3 billion surplus as of Dec. 30, 2016, and a funding stat of 166%.

FRR said it has pursued a commitment toward financing the French economy, with more than €1 billion allocated in unlisted assets.

"The FRR's commitment will continue in 2018 with the establishment of dedicated innovation capital funds and the award of development capital fund mandates, through tender procedures currently underway," said the update. "The FRR will also continue to invest directly in collective funds."

Executives will also extend the decarbonization of its portfolio, increasing the proportion of investments that have a social and environmental impact. Further details could not be learned by press time.

A spokeswoman said the annual report will be presented in April.