Fonds de Réserve Constitutionnel

As of December 31, 2024, the Fonds de Réserve Constitutionnel (FRC) amounted to EUR 7.28 billion. Created under Article 41 of the Constitution of December 17, 1962, the FRC is managed by the Minister of State, assisted by the Investment Commission, which is chaired by the Minister of State and includes the Minister of Finance and Economy (Vice-President), the Director of Budget and Treasury, the Administrator of State Properties, and three representatives of the National Council. The General Controller of Expenditure attends meetings in an advisory capacity. The fund’s governance and scope are defined by Sovereign Ordinance No. 4.654 of February 9, 1971, as amended.

The FRC’s investment philosophy seeks to balance capital preservation, long-term diversification, and risk-adjusted returns. Its strategic asset allocation combines liquid assets (bonds, listed equities, etc.) with illiquid assets generating risk premiums (private equity, infrastructure, private debt). Portfolio construction is based on multi-asset and multi-geographic diversification, complemented by rigorous risk management tools (stress testing, Value-at-Risk, exposure limits, liquidity and concentration monitoring). ESG principles are integrated throughout the investment process, in line with the sustainability objectives set by H.S.H. the Sovereign Prince.

Sustainable investment plays a growing role in the portfolio. The FRC has established a partnership with S&P Global to assess each holding through an ESG lens, both for the liquid and real-estate segments. ESG discussions are embedded in the fund’s governance, reflecting its long-term commitment to responsible investing.