Strategic asset allocation

The choice of the strategic portfolio, i.e. the relative exposure to the different asset classes retained, particularly contributes to the creation of value and to the growth of the capital entrusted to FDC. FDC foresees investments in five asset classes: equities, bonds, real estate, infrastructure and liquidities. Each asset class has a strategic quota as defined in the latest investment strategy review.
 

A well diversified portfolio

A large part of the compensation reserve is invested through the SICAV in various asset classes relating to equities, bonds, money market instruments as well as unlisted real estate funds. As a result, the SICAV currently comprises 27 different sub-funds, each managed by an external portfolio manager appointed by FDC through a public tender process. The specific investment policy of each sub-fund of the SICAV is described in the issue document duly approved by the Commission de surveillance du secteur financier.

The non-SICAV part is managed internally and consists of cash, a loan portfolio, shares of the National Low-Cost Housing Administration as well as a direct real estate portfolio comprising various buildings (completed or under development) and forestry properties, all located in the Grand Duchy of Luxembourg.

Data as of 31 December 2024 in million €. Excluding balance between accounts receivables and payables mainly representing contributions to receive but not yet available for investment. 

FDC's major real estate initiatives

In 2009, FDC launched its first major real estate project, starting with the demolition of an obsolete building in the Kirchberg district and the launch of an architectural competition to select the new project to be realised on the above-mentioned site, henceforth called IAK.

Several other major projects have since been completed or launched, including the office buildings Carrefour and Cité de la sécurté sociale as well as the projects Nei Hollerich and ZAN2023+.