Asset allocation

ERAFP's responsible investment approach cannot be summed up simply as applying investment selection and monitoring rules. It also results in the implementation of prudent and diversified asset allocation.

ERAFP believes that the public financial sector can act as a relay when companies' access to credit tightens on account of a slowdown in economic activity. Not only does ERAFP play this "bottom-of-cycle" role, but it also has a rare capacity for providing long-term support to companies through its investments, thanks to the generous room for manoeuvre it has over the next 20 years.

Indeed, as a recently established scheme, RAFP will continue to gather steam over a long period. With substantial net cash inflows (€1.77 billion in contributions in 2014) the Scheme is not hampered by short-term management constraints and can hold portfolio securities for the long term.

Having this amount of cash is a strategic advantage in that it can be used to finance long-term investment projects - or even very long-term in the case of more structural investments such as infrastructure network extensions and developing innovation and small companies.

In 2017, ERAFP invested €10.5 billion in the French economy in the broad sense, or 44% of its total assets at amortised cost.

Investments in France and globally by asset class at 31 december 2017 (at amortised cost)

Investment flows by asset class in 2017