In his response, Schneider detailed that the pension reserves stood at €18.9 billion by the end of 2018. For the full result of statistics emerging from 2018, he explained that this could only be announced by mid March — but preliminary results show that the reserves have grown.
As for where the funds are located, the Fonds de compensation commun au régime général de pension (FDC - the pensions communal compensation fund) has placed 90% of the funds in its SICAV (an open-ended collective investment fund), and 10% are invested in shares of the the National Affordable Housing Company (SNHBM).
The 90% placed in the SICAV are distributed widely in order to generate as little a risk as possible. The only remaining risk remains the evolution of investment markets, as the SICAV had a loss of 2.56% in the last year. This was the first negative result since its launch in 2007, as each year it had an average yield of 4.5% per year.
However, Schneider assured that that loss has been recuperated in January 2019 alone.
