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Asset Owners

Luxembourg’s reserve fund boosts equities, eyes green bonds, impact equities portfolios

Fonds de Compensation Commun au Régime Général de Pension, Luxembourg, raised its equity allocation to 40% from 32.5% as part of a strategic asset allocation review, a spokeswoman said.

As a result, FDC will decrease fixed income to 50.5% from 54% and money market funds to 1% from 5%, subject to approval from the Minister of Social Security.

Following the review, the €17.05 billion ($19.9 billion) reserve fund will launch new allocations: one dedicated to green bonds and one that will focus on equities "with positive impact."

The size of the new portfolios is still to be determined but could be between €50 million and €100 million each and would count toward the fund's strategic target allocation for equities and bonds, the spokeswoman said.

"We intend to launch the subfunds (new portfolios) next year and the corresponding request for proposals ... might be launched during the second quarter of 2018," she said.