Paris-based Fonds de Reserve pour les Retraites hit the pause button on planned equity and illiquid asset increases after the coronavirus outbreak postponed France's latest pension reform.
The reform, which was delayed in March by French President Emmanuel Macron, was set to extend the €33.6 billion ($36.7 billion) plan's investment horizon to 2040 from 2024. It would also have given FRR greater flexibility to invest in growth assets such as equities, real estate and infrastructure, Olivier Rousseau, executive director of FRR, said in a telephone interview.
"The move of the portfolio toward more risk assets is delayed," Mr. Rousseau said. "No changes to the portfolio are a big change to what was supposed to happen," he added.
Executives in January planned on adding 10 to 15 percentage points in global equity exposure, Mr. Rousseau said. FRR's current equity allocation, which has a eurozone bias, accounts for about 36% of the plan's total assets, while real estate currently stands at 0.5% of total assets. He did not specify the size of the planned increase to real estate.
"We want to have an agreement from the Ministry of Finance before we make any substantial changes," he said, adding that the government's latest position on the reform's timeline is currently unclear. "I hope the discussion will be able to start again in September or October," Mr. Rousseau said.