Investment Strategy
Agirc-Arrco is France’s mandatory supplementary pension scheme for private sector employees, managing approximately $80 billion in reserves. The scheme covers approximately 30 million active participants and 13 million retirees, making it one of Europe’s largest pension schemes by membership.
The investment strategy for Agirc-Arrco’s reserves is designed to protect and grow the financial buffers that ensure the scheme’s ability to pay supplementary pensions. The portfolio spans fixed income, equities, real estate, private equity, and infrastructure. Alternatives represent approximately 10% of reserves.
The private equity program invests through fund commitments managed by external asset managers under mandate. Infrastructure investments focus on French and European assets with stable income characteristics. Real estate includes French property investments. The scheme has been gradually increasing its alternatives exposure as it seeks higher returns in a low-yield environment.
How to Approach
Agirc-Arrco’s investment management is handled through external mandates. GPs seeking access to the scheme’s capital should understand which asset managers hold mandates from Agirc-Arrco and position their funds accordingly.
The scheme’s financial management team in Paris oversees the overall investment strategy and selects mandate holders through competitive processes. GPs may also approach the team directly to understand upcoming mandate renewals or new allocation opportunities. The team attends French institutional investor conferences and is part of the broader French pension ecosystem.
Frequently Asked Questions
How much does Agirc-Arrco allocate to alternatives?
Agirc-Arrco allocates approximately 10% of its reserves to alternative investments including private equity, infrastructure, and real estate. The fund's alternatives program has been growing as the scheme seeks to diversify returns beyond traditional fixed income and equity markets.
How can fund managers approach Agirc-Arrco?
Agirc-Arrco's investment management is handled through external mandates to approved asset managers. GPs seeking access should approach the asset management firms that hold mandates from Agirc-Arrco, or directly contact the scheme's financial management team in Paris. The fund uses a structured tender process for selecting managers.
What is Agirc-Arrco's structure?
Agirc-Arrco merged in 2019 from two separate supplementary pension schemes (Agirc for executives and Arrco for all private sector employees). The combined scheme covers approximately 30 million participants and 13 million retirees, making it one of the largest pension schemes in Europe by membership.
