Luxembourg’s Fonds de Compensation reported a return rate of 11.24%, with total pension reserves now standing at €30.6 billion, more than four times the yearly payout.
On Friday, Luxembourg’s National Compensation Fund (FDC) – responsible for managing and investing pension funds – released the annual report pertaining to 2024.
As of 31 December, the compensation reserve amounted to nearly €29.4 billion. When including the balance from the national pension insurance fund, the total pension reserve stands at €30.6 billion, which corresponds to 4.4 times the amount paid out annually.
Over the past year, the FDC revised its investment strategy. At the beginning of this year, the so-called exclusion list was also reviewed. This list includes companies and firms in which the Luxembourg pension fund does not wish or is not allowed to invest.
Eighteen companies were removed from the exclusion list, including German firm Rheinmetall AG, a major defense contractor and automotive supplier.