The Fonds de Compensation de la Sécurité Sociale, SICAV-FIS (FDC) was created in 2007 as a specialised investment fund to invest part of Luxembourg’s excess pension reserves. As a public institution, FDaC is subject to the supervision of Luxembourg’s Minister of Social Security. As of the end 2017, FDC holds around €18 billion assets under management.[i]
At the end of 2011, FDC formalised its socially responsible investment policy by excluding companies that do not respect international standards and conventions ratified by the Grand Duchy of Luxembourg.[ii] As Luxembourg is a party to the Non-Proliferation Treaty and the Comprehensive Nuclear Test-Ban-Treaty, FDC excludes all businesses involved in the production, development, maintenance and trade of nuclear weapons or delivery systems that are specifically designed for nuclear weapons.[iii]
FDC outsources all of its investments to external asset managers. The exclusion policy applies to all of these external managers.[iv]
FDC’s publicly available exclusion list is revised every six months and is based on the findings of external research organisation Global Engagement Services (GES).[v] As of 8 June 2018, FDC excludes the following companies for involvement with nuclear weapons: Aecom; Aerojet Rocketdyne Holdings; Airbus; BAE Systems; Boeing; BWX Technologies; Dassault Aviation; Fluor; General Dynamics; Honeywell International; Huntington Ingalls Industries; Jacobs Engineering; Larsen & Toubro; Leonardo; Lockheed Martin; Northrop Grumman; Orbital ATK; Raytheon; Rockwell Collins; Safran and Serco. [vi]
[i] Fonds de Compensation, “Presentation”, website Fonds de Compensation (https://www.fdc.lu/organisation-and-governance/presentation/?L=1), viewed 20 June 2018.
[ii] Fonds de Compensation, “Directive du Conseil d’Administration“, January 2018, page 5, available at https://www.fdc.lu/fileadmin/file/fdc/2018_Directive_du_CA_final.pdf#pageMode=bookmarks, viewed 20 March 2018 ; Fonds de Compensation, “Socially Responsible Investment”, website Fonds de Compensation (http://www.fdc.lu/en/socially-responsible-investment/), viewed 23 January 2018.
[iii] Fonds de Compensation, written response to Profundo dated 14 August 2013; Fonds de Compensation, written response to Profundo dated 24 June 2014.
[iv] Fonds de Compensation, written response to Profundo dated 15 March 2016.
[v] Fonds de Compensation, “Socially Responsible Investment”, website Fonds de Compensation (http://www.fdc.lu/en/socially-responsible-investment/), viewed 23 January 2018.
[vi] Fonds de Compensation, “FDC Exclusion List”, June 2018, (https://www.fdc.lu/fileadmin/file/fdc/Liste_d_exclusion_finale_20180608.pdf#pageMode=bookmarks), viewed 20 June 2018.
Last updated August 2018