Fixed income portfolios boost 2013 returns at France's UMR
France’s €7.6bn multi-scheme UMR saw positive returns over 2013 on the back of fixed income and equity investments, as some real estate holdings failed to contribute.
Comprising three funds – Corem, R1 and Corem Co – UMR saw strong returns from the equity portfolios it manages as a whole.
The €6.1bn Corem fund returned 5% over the course of the year, with its €3.4bn in bond holdings supplying 5% returns.
With around 300,000 members, two-thirds of which are still active, the fund maintains a higher equity and growth asset allocation compared with its peers.
Its €1bn in equities produced 3%, while unlisted holdings returned 6.4% and real estate 9.9%.
The R1 fund, with close to €1.6bn in assets, found less success with its bond holdings.
The €1.2bn allocation returned 0.88% through to December 2013, as the overall portfolio provided 5.8%.
Its €195m in equities produced a 5.9% return as the fund saw losses on its real estate portfolio.
Unlisted assets returned 6.8%.
The €3.9m Corum Co fund, made up entirely of bond holdings, returned 6.65% as the fixed income portfolio provided 5.4%.
UMR operated two of its own equity portfolios, the Select Europe fund and the UMR Select OECD fund.
The select fund saw returns hit 20.74% over the course of 2013, as OECD allocations returned 12.23%.
UMR said the Europe fund remained overweight euro-zone equities, as allocations to the currency zone reached 15%.
It’s OECD Select fund saw its returns come from its 60% allocation to North American equities, primarily US consumer stocks and listed real estate investments.
The fund also retained 22% allocations to emerging markets, with a direct 2.8% allocation to local Chinese listed entities.
Across the two funds, UMR’s allocations over 2013 leave it with 50% in European equities, 28% in the US and 11% in emerging markets, with the remainder in Japan, Australia and Canada.
The UMR Select Alternative fund returned 5.83%, as the pension reasserted its commitment to unlisted investments, including 3.4% of the Corem fund, in both private equity and infrastructure.