Fonds de Reserve pour les Retraites (FRR) has introduced a new asset allocation employing a liability-driven investment (LDI) approach, Pensions & Investments reports. To implement the strategy, FRR will hire managers to run socially responsible equities, commodities, high-yield debt and developed country equities with exposure to emerging markets. The French pension fund’s commitment to its “coverage” portfolio will remain around 61% of total assets, with its “performance” portfolio constituting the remaining 39%. Changes will be conducted within each portfolio. Within the coverage portfolio, French treasury debt will rise to a target allocation of 30.5% of the fund’s total assets, from 15.4% as of December 31.
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