Page 20 - Monaco Economie 125

ZOOM

You have been advocating the development CONSTITUTIONAL RESERVE highly-liquid sustainable investments or in private
of hedge funds and private equity in the FUND equity (average duration of seven to 10 years),
Principality for years. Where we are now? What are the latest figures from the with an ESG strategy that emphasises the “E” (for
My view has not changed. In terms of Constitutional Reserve Fund (FRC)? Has it Environment: Green and Blue Funds). Emphasis
investment capital, the Principality does not suffered this year from the energy crisis must now be placed more on an “S” and “G”
yet occupy its rightful place. Our current goal and market volatility? What is the current (Social and Governance) strategy, focusing on
is to position ourselves as the place where percentage of green finance in the FRC? the values of inclusiveness, gender equality and
people in charge of investment decisions The FRC currently has around €2.5 billion in liquid respect for human rights: ESG must be applied
can establish themselves. Due to the small assets and the percentage of investments in to all segments.
size of the territory, we can hardly compete sustainable investments is over 50%, including
with Dublin and uxembourg for asset 20-25% of the liquid part placed in private equity! In real terms, will the FRC invest in
management or, in particular, private equity; Remember that 10 years ago, we were at 0! This companies that have a strong Corporate
but if Monaco is not suited to attracting rate brings us closer to certain funds, in particular Social Responsibility (CSR) strategy and do
technical and administrative teams, we the structures of the major American universities, not greenwash?
can attract managerial skills and decision- which have long-favoured private equity. Alongside Companies must not only display CSR values
makers. Wealthy clients who want to invest these investments in private equity (mainly in but be able to demonstrate them! This
in new technologies or in sustainable finance new technologies and sustainable development), came up again at COP27: “no tolerance for
areas of development for the Principality - the FRC has 25-30% invested in more traditional greenwashing on carbon neutrality,” warned
editor’s note must be offered products and and more liquid assets (equities, bonds, etc) as Antonio Guterres and “red lines” were drawn
services in the field of investment capital part of a sustainable strategy. Our goal is to against greenwashing by private companies,
private equity. It’s a virtuous circle: the more reach 100% one day. We started with two funds which is of interest to states and investors. We
customers you have interested in sustainable managed by CMB and CFM, Ecoplus and MEDD, must offer more transparency and evidence
development and the more customers you with a few tens of millions of euros invested in that the objective pursued is being achieved
have interested in private equity, the more sustainable development and in which the FRC and not just hoped-for. In the same way, it will
players in these sectors will set up in the was a historical and majority investor. We have be necessary to fight against the practice of
Principality! grown to more than one billion euros invested in “social washing”.

© Michael Alesi / Direction de la communication

Jean Castellini, Minister of Finance and Economy

20