Fonds de Reserve pour les Retraites, Paris, had €35.7 billion ($50.2 billion) as of Sept. 30, up 7.9% from the previous quarter and 11.9% higher than a year earlier.
“In the last three months, the FRR’s investments have benefited from decreasing fear over the public finances of the eurozone following the establishment of the European financial stability fund and the reassuring publication of European banks’ stress tests,” according to a statement on the fund’s website. “The anxieties over growth in the U.S. have also leveled off, which led to a clear upturn in the equity markets by the end of this quarter.”
The fund shifted 12% of its assets to fixed income and money market investments in the third quarter, to a combined 59.4% from 47.4%. Equities were cut to 33.3% from 44.3%, commodities to 3.8% from 4.7% and real estate to 3.5% from 3.6%.
An FRR spokeswoman could not be reached for further information by press time.