Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, can increase its investments in private markets following a change in French regulations.
To help ERAFP boost its potential returns and increase its contribution to the financing of companies, the regulations, which went into effect Aug. 9, permit higher investment thresholds in equities and funds of unlisted assets up to 45% from 40%, according to the €29.6 billion ($32.8 billion) pension fund's website.
In addition, limits on real estate investments increased to 15% from 12.5%, while the limit on direct investment in UCITS has increased to 10% from 3%.
ERAFP's board of directors and management welcomed the change as "useful additions in the current economic environment," the pension fund said on its website.
A spokeswoman could not be reached to provide additional details about plans to revise ERAFP's asset allocation.