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France's ERAFP keeps its eye on portfolio diversification

Jul 17, 2019 - Investment & Pensions Europe
Board and Executive Moves

France's ERAFP plans to further scale back the size of its fixed income portfolio this year in an extension of its diversification efforts, according to its latest annual report.

Under investment policy decisions adopted by the board in December last year, the EUR29.6bn pension fund should use this year to pursue the reduction of the bond allocation from 57% to 54% of the fund's overall portfolio. New investments in bonds should prioritise corporate bonds, including emerging market debt.

According to its annual report for 2018, last year ERAFP cut the size of the fixed income portfolio from nearly 60% of assets to 56.6%, valued at amortised ...