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investments that are immediately payable type of investment under-performed others. the Fund Investment Commission, chaired
and liquid, such as diversified funds, a return Personally, I never subscribed to this thesis. by the State Minister, the government must
of 5 to 6% per annum is a reasonable goal. In 2009, a sustainable development allocation report on this management to officials such
In terms of strategy, we must imagine that with smaller sums was integrated. Today, as the Expenditure Control Authority and to
into the profitability-risk couple, we integrate sustainable and social finance represents politicians on the National Council! During
a third dimension, liquidity. Thus, less liquid between 15 and 20% of the portfolio. these three or four meetings per year, the
funds, by diversifying risk, can both increase investments made, the recommendations for
profitability and decrease volatility. We have And will this envelope increase much? purchase or sale, for the real estate side or the
been able, in recent years, to increase the We entrusted an audit of the FRC to an external liquid side, are presented. If the investments
amount of the reserve fund, as we have consultant to define areas for improvement. were not comprehensible and efficient, it is
experienced budget surpluses and positive Instead of allocating a percentage of the fund unlikely that they would receive strong support
fund performance every year - except in to virtuous investments, my ambition is to turn from members of the Commission.
2011 which ended in a budget deficit and a it completely green and to make traditional
fall in the markets, which is the worst-case investments sustainable. Imagine an FRC Is the FRC a second budget?
scenario. Today, the fund’s results for 2020 are of €2.5 billion, 80% or even 100% managed It may have been so presented in the past but
satisfactory with to date [NB: as at November in a sustainable manner. You deploy capital my answer is no. This feeling arose out of
12] a positive performance but it is likely that without commonality with a simple strategy of certain operations which could have or should
the year will not end with a budget surplus. allocating X% to this segment. The ideal would have been financed by the state budget but
be for capital in the Monaco marketplace to be were not because the equivalent sums were
What is the share of green and responsible deployed as much as possible in sustainable not initially recorded. Today, such operations
finance in the FRC? investments. Monaco would thus become a will, in all cases, result in remuneration which
The green part began at the turn of the 2000s fully-fledged centre of sustainable finance. would be paid from the budget to the FRC if
with two funds, ME2D and Monaco ECO+, an advance is made by one to the benefit of
which did not receive widespread public Today there is more transparency. A few the other. The goal is for state spending to
support but, so to speak, the seed was sown at years ago, the management of the reserve be, to the greatest extent possible, included
a time when it was fashionable to think that the fund was a taboo subject, was it not? in the state’s annual budget and voted on by
sustainable could not or should not represent At least for the general public, yes; but in the National Council.
more than 3% of a portfolio, or that this fact, through the creation decades ago of

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