France seizes €36bn of pension assets

Asset managers will have the chance to get billions of euros in mandates in the next few months for the €36bn Fonds de Réserve pour les Retraites (FRR), the French reserve pension fund, after the French parliament last week passed a law to use its assets to pay off the debts of France’s welfare system.

The assets have been transferred into the state's social debt sinking fund Cades. The FRR will continue to control the assets, but as a third-party manager on behalf of Cades.

The change is included in the annual social security law that was adopted last week and will be published by the end of December after anticipated approval by the constitutional court.

The move reflects a willingness by governments to use long-term assets to fill short-term deficits, including Ireland's announcement last week that it would use the country's €24bn National Pensions Reserve Fund "to support the exchequer's funding programme" and Hungary's bid to claw $15bn of private pension funds back to the state system.

The decision has prompted a radical restructuring of the FRR's investments. The new strategic investment plan, which will be released in the new year, will see a rapid reduction in its 40% allocation to equities and a shift to cash and short-term government bonds, according to a source close to the situation.

There will be a focus on liability-driven investment, where asset managers are told to minimise risk by matching assets closely to liabilities.

The transfer of the FRR's assets to Cades is controversial. Force Ouvrière, a trade union confederation, accused the government of "provoking the clinical death" of the FRR.

The decision was taken within the context of this year's pension reform, which provoked riots with its decision to raise the retirement age. The state old-age pension system, the Cnav, is in deficit, and responsibility for financing the deficit rests with Cades.

The government is requiring the FRR to pay €2.1bn a year to Cades to meet this obligation.

The government claims that the rise in retirement age will return Cnav to balance by 2018, so the FRR is expected to pay this sum for the next eight years. The FRR will then be wound down. It is expected to cease operations by 2024.

The schedule of payments will account for about two-thirds of the FRR's assets. A source close to the situation said: "That means it will keep about one-third of the total without any liability constraint, and will have the opportunity to manage that part of the fund in a normal active and long-term way."

Another source said: "In most years, the FRR accounts for more than 50% of asset management mandates in France."

He said the FRR had been an innovative force in the relatively conservative French asset management world. It had pioneered a shift in the style of managing money in France, from balanced mandates, where a single fund manager invested its client's money in many different asset classes, to specialist mandates, involving many fund managers focusing on particular areas of expertise.

The FRR promoted socially responsible investment, increased the use of investment consultants and encouraged objectivity in assessing performance.

The source added that without the FRR, "the risk is that the market will slip back into its old habits and slower pace".

An asset manager said: "Clearly, the move creates new opportunities, because the French asset management market will be reshuffled because of the changes.

But it is also a step back because there are very few French capitalised pension schemes, and the experience around the FRR, the richness of the asset management and the opportunities it created will disappear in a few years."

Other urls found in this thread:

fnlondon.com/articles/france-seizes-euro-36bn-of-pension-assets-20101129

fnlondon.com/articles/france-seizes-euro-36bn-of-pension-assets-20101129

The money will be used on sand nogs without a doubt

We're running out of deck chairs to rearrange.

So basically people's pensions are getting robbed to stuff into kike banks?

It's an old school way of managing pensions. You predict a schedule for how much you're going to pay out in each time period far into the future, then try to match investments to it. Naturally, the focus tends to be on bonds.

They're raiding pensions to pay for gibs? kek

Like how Social Security is raided to pay for pet military projects that are money sinks.

I wish that was all it was being used for

checked.

tbqf Fuck EUROPE. Let 'em rot in hell.

Have fun predicting when the thieves will tell you the money is all gone. Those greedy super smart experts created another bubble! It's all gone!

>(((Asset ranagers)))

Oy vey, how do yah expect us ta maintain the coyrrent standad of living if lots of goyim stop woyking? Tell them ta raise the retiyahment age a few moah yeeahs, its nothing ta worry about! A liddle bit of debt is a great way ta motavate woykas ta toil some moah!

Things like this make me almost want to quit even trying for employment, take up sustenance farming on a plot of family land that my boomer parents abandoned "to be professionals" in the 80's and become a NEET non contributer to the economy. Why even fucking bother until it all collapses?

Go fuck yourself. You rot in hell.

< shilling for France

Fuck Europe. They chose their faggot lot!

sigils, son?

You are way too transparent. The people of france did nothing wrong. their government has been usurped same as everyone else. You are a divide-and-conquer shill.

Top Kek, I guess they can't just force old people to retire later like in Sweden and must pay for the gibs via stealing old boomercuck pension money.

B-but don't worry, those engineers and doctors will pay for your pensions you dumb, greedy boomers :^)

You see after they drained all of the money for welfare for the non-whites, the liberals then turn around and say whites need to become a minority for the pensions.

The important thing is that nobody can call France racist. Broke, yes. But not racist.

Remember someone, someday, is going to judge you for being a racist, and somehow by not being racist you will gain more, probably after you die, than others who were racist and may have lived a better life in their racism but will have a poorer afterlife because of how fucking racist they were, or something like this.

The noble savage mythos is what causes the lowering of the guard, it was the first layer of disarmament. We're still experiencing faith being abused for profit, their practices make us all lowly by association and that is their vision.

Your grandparents and parents life long contributions from their labour is not being used for gibs… the White genocide will be the elderly freezing and starving. WE'RE FUCKED, if we don't do something soon. South Africa is the model. HELL ON EARTH.

they chose their fate, let them have their enrichment.

Mfw

Id give a shit if I knew I could expect any sort of actual outrage at this. But we all know that this is the future that europeons want. They wont even both with the ioktbw type stuff. If you want me to feel bad, put in some effort.

It's cultural appropriation. Slavs did it first.

And what would we have deserved if Clinton won in 2016? To condemn an entire people you share some form of kinsmanship with because of the results of a single "democratic" vote exposes you for the brainlet you are.

Also,
Le Pen won. The Globalists stole it to Macron.

None of us here are getting a state pension. Accept it, resent it by all means, and hate those who brought this about of course but forget about a boomer-tier retirement, it isn’t going to happen. And forget about having enough personal wealth to negate this, once a majority is left destitute then society will crumble and the cost of living safely in a society like that is far beyond a private pension fund.

We change things or we die a hated minority on our own clay.