Fonds de Reserve pour les Retraites, Paris, recorded a net gain of 1% in 2020, driven by the resilience of its equity portfolio to the effects of the COVID-19 pandemic.
The performance compared to a 9.7% return in 2019.
Assets fell 21.7% to €26.3 billion ($32.3 billion) as of Dec. 31 from €33.6 billion a year earlier.
FRR said in an update on the fund's website that its assets fell primarily because of withdrawals made during the year, particularly during unfavorable moments in the recovery cycle. About €7.1 billion was withdrawn.
The fund's portfolio consists of performance assets, made up of equities, and hedging assets, composed of corporate bonds and government bonds.
The annualized return since 2011 was 4.5%. Since 2011, performance assets have recorded a cumulative increase of 89.1%, while hedging assets have gained 33.7%.
During 2020, FRR allocated €750 million to France-based unlisted assets such as private equity and energy transition infrastructure. The fund also allocated €250 million to growth capital investments aimed at French technology companies.
In 2020, FRR also continued to reduce the carbon footprint of its portfolio, as it seeks to better align it with a low carbon economy, it said. Carbon emissions by companies within the fund's equity portfolio were 33% below its benchmarks, according to the update.
