Fund operating expenses

Organisation and Human Resources

As at 2021, the FRR has 47 permanent members of staff, 39 of whom are on Caisse des Dépôts contracts. All staff work under the authority of the Management Board, to which a finance division, operations and risk division, and legal and communication division report. 2021 was marked by the pandemic, which led to its organisation being adapted and then to the permanent introduction of remote working. The FRR maintains a demanding level of process security, thanks to its management tools and high-quality reliable analysis, and will continue its ongoing evaluation of the effectiveness of its organisation.

The FRR’s costs

Costs amounted to EUR 85.4 million in 2021, compared with EUR 94.4 million year on year. This fall is due mainly to a EUR 9.5 million decrease in financial management fees, and more specifically a decrease of EUR 9.2 million in performance fees year on year.

This development was largely the result of the decrease in the provision for trailer fees, i.e. the performance fees estimated on 31 December due in respect of mandates not expired at the end of the year. This estimate fell from EUR 55.4 million to EUR 45.7 million at the end of 2021 in correlation with net assets, which decreased by an average of EUR 3.8 billion over the past year. At the same time, the decrease in assets for allocation management and the reduction in options hedging have led to a decrease in overlay fees, which amounted to EUR 2.4 million in 2021, compared with EUR 3.8 million in 2020.

After a significant decrease in 2020, back-office and custody charges – which are on top of the FRR’s evaluative expenses budget and relate to services entrusted to Caisse des Dépôts within the frame­work of the agreement between the two – amounted to EUR 7.6 million compared with EUR 7.8 million in 2020.

All other FRR expenses, such as payroll, real estate costs, IT, overheads or consultancy expenses are part of the Fund’s limited budget and have little correlation to net assets. They represent 18% of expenses and amounted to EUR 15.1 million in 2021. These costs correspond to 5.7 basis points of assets under management.

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