France’s Fonds de Réserve pour les Retraites (FRR) has announced a €200m investment in European securitisation strategies as part of its efforts to diversify its fixed-income portfolio and enhance its risk-return profile.
The move will see FRR allocate capital to securitised assets, which it said offer high levels of transparency and quality, while also providing direct support to the real economy.
European securitisation enables financial institutions to refinance loan portfolios – including mortgages, auto loans, consumer credit and SME financing – and supports continued lending to households and businesses.
“Through this investment, the FRR contributes to the development of new financing capacity while gaining access to an attractive and less correlated source of performance compared with traditional investment grade bonds,” it stated.
The allocation is currently being implemented through three investment-grade-rated funds managed by Amundi Asset Management, BNP Paribas Asset Management and Eurizon Capital.
These funds invest primarily in European asset-backed securities (ABS), residential mortgage-backed securities (RMBS) and collateralised loan obligations (CLOs).
The FRR said that through this initiative, it reaffirms its commitment to combining sustainable financial performance with active support for financing the European economy.
Looking ahead, the pension fund indicated it may establish dedicated mandates in securitisation.
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