mast image

Impact Investing

IPE special report May 2018

Sections

Luxembourg may outsource national pension fund

LUXEMBOURG – Luxembourg intends to modify the running of its national pension reserve fund, which could result in management of the four billion-euro fund being put out to tender next year.

The pension reserve fund, established in 1984, has been used as a buffer in case of recession, but changes in demographic situations and the impending retirement of baby-boomers have convinced the government to put the fund to work.

Last week the government approved the plan to create an “appropriate structure to allow optimum management of the pension compensation fund”. It is planned that the money from the Reserve de Compensation will be issued to managers if and when the law is completed at the end of this year or next.

The restrictions on investments and low returns have encouraged the government to look to external managers, in search of a stable return. An official at the regulator of social security said that, at present, returns for the fund were relatively low due to asset allocation restrictions, but that even if the fund were outsourced, initially the portfolio would have to be low-risk.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2435

    Asset class: CLOs.
    Asset region: Global.
    Size: USD 50m.
    Closing date: 2018-05-22.

  • QN-2436

    Asset class: Real Estate - Core Open-ended Real Estate Equity Fund (non-listed).
    Asset region: Asia Pacific.
    Size: Approx. CHF 70-100m per investment.
    Closing date: 2018-05-25.

  • QN-2438

    Asset class: High Yield Bonds.
    Asset region: US.
    Size: USD 300 million.
    Closing date: 2018-05-25.

  • RE-2441

    Closing date: 2018-05-31.

Begin Your Search Here