Structure of bond mandates by maturity range at 31 December 2016










0 1 year 1 3 years 3 5 years 5 7 years 7 10 years 10 15 years > 15 years

USD 21.3%

EUR 78.7%

Breakdown of fixed income mandates by currency at 31 December 2016

Breakdown of the EUR 2.1 billion payment to the CADES

As has been the case every year since the pen- sions reform of 2010, the FRR must pay EUR 2.1 billion to the CADES. This amount broke down as follows for 2016: EUR 1.26 billion from matching, including EUR 800 million through coupons falling due and bonds reaching their natural maturity;

EUR 760 million from the sale of equities (EUR 260 million from emerging market equity funds, EUR 300 million from futures on US equities, and EUR 200 million from futures on European equities outside the eurozone);

EUR 350 million from sales of mandates for high quality corporate bonds denominated in euro.

Breakdown of the portfolio by management type

The FRR uses different types of management to achieve its asset allocation objectives: Passive management for substantial unitary amounts; and

Active management aimed at seeking a con- tinuous relative outperformance.

At 31 December 2016, around 57.7% of the FRR s total net assets and 57% of equity investments were managed actively.

In 2016, the weighting of performance assets was raised to a little over 51%, compared with 48.9% in 2015.