In 2024, insurers and pension funds maintained diversified portfolios amid an uncertain economic environment, according to a Banque de France bulletin. The steepening of the yield curve—short rates falling while long rates stayed stable—led investors to shift more capital into long‑term bonds and away from money‑market collective investment undertakings (CIUs). The share of bonds in their portfolios stayed high, continuing the rise seen in 2023. The funds also replaced maturing bonds with higher‑coupon securities, improving returns, particularly for pension funds. Portfolio exposure remained primarily in fixed‑income instruments, with a continued focus on risk diversification. Investors also monitored interest‑rate risks, adjusting durations to align with projected economic trends.
© Banque de France 2025.
Summary adapted from material on the Banque de France website (https://www.banque‑france.fr ).
https://www.banque-france.fr/en/news/2024-insurers-and-pension-funds-maintained-diversified-portfolios-uncertain-economic-environment
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