FRR 2016 ANNUAL REPORT26
Smart beta management accounted for around 57% of the EUR 5.5 billion managed passively in developed markets at the end of 2016. Nearly all of these investments applied a decarbonisation method in 2016.
Pursuit of two main strategies
Ongoing investment in the french economy
The FRR continued its programme of investing in unlisted funds that specialise in issuing loans in support of the French economy.
This saw the FRR invest more than EUR 200 mil- lion in 2016, especially in loans to the French economy. A number of tenders issued in 2016 will also lead to investment commitments from 2017: private debt funds (EUR 600 million) and private equity funds (EUR 900 million) will be used to disburse most of the EUR 2 billion budget for investing in unlisted French assets (private equity, business loans, real estate and infrastructure).
The new programmes to which the FRR commit- ted led to large calls for funds: EUR 14 million in real estate; EUR 168 million in loans to the economy; EUR 22 million in NOVI funds (mixed corporate bond and equity funds).
Passive management 42.3%
Passive management 36.7%
Smart beta composite
Capitalisation- weighted 38%
Value/Momentum factors 11%
Value factor 8%
Breakdown of the equity portfolio by management type, excluding overlay management*
Breakdown of the portfolio by management type (all asset classes combined)**
Breakdown of passive management types for developed market equities, end-2016
* Corresponding to EUR 5.5 billion for passive management and EUR 7.5 billion for active management at 31/12/2016.
** Corresponding to EUR 1.4 billion for overlay management, EUR 0.6 billion for cash management, EUR 13.2 billion for passive management and EUR 20.8 billion for active management at 31/12/2016.