FRR 2016 ANNUAL REPORT24
Changes in the geographical breakdown of equity mandates
2013 2014 2015 2016
Germany Spain United States France Italy Japan Netherlands United Kingdom Others
At 31 December 2016, hedging assets accounted for around 49% of the FRR s net assets, and mainly included financial instruments7 used for matching liabilities, but also good quality corpo- rate bonds.
7 Buy&hold French government bond type instruments.
The passive decrease of 2% in matching (linked to the use of coupons and OATs maturing in 2016 to pay the CADES) was offset by an increase in quality corporate bonds (1% in euro, 1% in dol- lar). The weighting of these bonds in hedging assets reached 49% at the end of 2016 and accounted for most of the return on bond invest- ments. This asset class was the subject of 11 new mandates in euro and dollars, renewing previous mandates.
Bonds issued in dollars are systematically hedged against currency risk.
INVESTMENT GRADE BONDS 47.7%
Liability cash flow matching 21.5% Developed country bonds 0.0% Investment grade corporate bonds 26.2%