The Fonds de Compensation manages the financial reserves of the National Pension Insurance Fund (Caisse nationale d’assurance pension, CNAP) and invests them in an ad hoc investment fund to ensure that pensions are properly paid. Photo: Shutterstock

The Fonds de Compensation manages the financial reserves of the National Pension Insurance Fund (Caisse nationale d’assurance pension, CNAP) and invests them in an ad hoc investment fund to ensure that pensions are properly paid. Photo: Shutterstock

As the debate on the future of pensions enters the heart of the matter, the Sicav of the body responsible for managing the reserves of the National Pension Insurance Fund has reported a return on investment of roughly €2.9bn in 2024, according to its unaudited results. At year-end, the Sicav had a value of €27.1bn.

2024 was a good year on the markets. And the Fonds de Compensation’s Sicav (an investment company with variable capital), an unaudited return on investment of €2.9bn. Over the year, the investment fund posted a return of 11.86%, up from 10.41% in 2023. That’s a return 0.62% higher than its benchmark index. All in all, the Sicav reached a valuation of €27.1bn compared with €24.2bn at the end of 2023. The audited annual financial statements will be published at the end of April 2025.

23.63% return on equity assets

48% of assets were invested in equities, 45% in fixed-income securities, 3.6% in money market instruments and 3.4% in unlisted property, noted the Fonds de Compensation, Luxembourg’s public pension system. Equity investments were responsible for this performance, with a return of 23.63% in a bull market.

Bond investments, with a return of 2.07%, had a mixed year despite interest rate cuts in all the major economies. Money market investments generated a return of 3.93%, while unlisted property posted a return of 0.60%. €10m was invested in the Sicav in November 2024. “This was part of a decision taken during the year to invest a total of €100m in stages in order to increase the Sicav’s exposure to unlisted real estate.”

140 companies excluded from the investment universe.

In , the Fonds de Compensation insists on the ecological, social and responsible dimension of its investments. According to its Sustainable Investor Report 2024, 140 companies have been excluded from the fund’s investment universe--including big names such as Airbus, Rolls-Royce, Thales and companies in the Bolloré galaxy--and 170 companies are under closer observation. 260 stocks have also been excluded by the fund’s asset managers. 100% of actively managed assets have received the Luxflag label and are either article 8 or article 9 under of the Sustainable Finance Disclosure Regulation (SFDR), which aims to promote sustainability in the finance sector in Europe.

This article was originally published in .

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