The second pillar has been taking a gradual but firm foothold in France’s hotly contested retirement system. Providers have transferred their funds to IORPs over recent years and assets in the PER workplace pension vehicle are growing. Law changes this year require PERs to hold a minimum allocation to unlisted assets. Since 2022 PER savers have had access to socially responsible, energy transition and social impact-labelled funds. Controversial reforms enacted by President Macron in April 2023 now look reasonably secure, with no appetite in parliament to overturn them.
Macron’s controversial pension reforms look likely to survive, at least for now, and despite the political turmoil of the recent elections
Pension fund/entity | Assets (€’000)
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French pension fund approves changes to voting guidelines following in-depth review
Mandates include more stringent decarbonisation targets
Pierre-Olivier Billard, head of the fund’s asset allocation department, replaces Salwa Boussoukaya-Nasr
Pension reserve fund estimates a median €1.8bn in extra value creation by 2033
Plans to adopt biodiversity policy this year, and launches social bond fund
Company | Assets (€m)
As at 30.6.23, *31.3.23, **31.12.22, ***30.6.22
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The rationale of the reform is simple: the rising life expectancies combined with decreasing birth-rate have accelerated the aging of the French population
French pension fund approves changes to voting guidelines following in-depth review
Trump’s re-election prompted a rally in US assets, but elsewhere in global markets investors did not react positively
The way the European economy powers itself is undergoing a fundamental shift, driven by market forces and policymakers. But while the direction of travel is clear, the path to a different energy mix is tortuous and the shift may be much slower than required to meet Europe’s target to be net zero by 2050.
While allocations vary, pension funds value solid returns and private equity’s role as a diversifier. Funds use PE to gain both domestic and international exposure.
The rise of far-right parties has bolstered support for European welfare state systems, but radical right-wing policymakers face difficult choices
Mandates include more stringent decarbonisation targets
Macron’s controversial pension reforms look likely to survive, at least for now, and despite the political turmoil of the recent elections
Fonds de réserve pour les retraites has had a management and investment refresh
IORPs have now taken root in France as providers have shifted from the previous insurance-based regime, but allocations to fixed income remain high
President Macron’s pension reforms may have their detractors, but the hung parliament is not expected to roll back any of them significantly