Caisse des dépôts et consignations
TypeSovereign wealth fund
IndustryInstitutional investor
Founded1816 (1816)
HeadquartersParis, France
Key people
Éric Lombard (CEO)
Olivier Sichel
  • Decrease €4.2 billion (2022[1])
AUMIncrease €244 billion (2022) US$288.58 billion[2]
Total assets
  • Increase €1,320 billion (2022[1])
Total equity
  • Decrease €59 billion (2022[1])
Number of employees
127,005 (2013)
SubsidiariesCNP Assurances, Icade, Société nationale immobilière (SNI), Transdev, Compagnie des Alpes, Egis, CDC Entreprises, Qualium Investissement, FSI, CDC Arkhinéo, Société forestière, CDC Biodiversité, CDC Climat, CDC Infrastructure,[3] Informatique CDC
Websitecaissedesdepots.fr

The Caisse des dépôts et consignations (CDC; lit. 'Deposits and Consignments Fund') is a French public sector financial institution created in 1816, and part of the government institutions under the control of the Parliament.[4] Often described as the "investment arm" of the French State,[5] it is defined in the French Monetary and Financial Code as a "public group serving the public interest" and a "long-term investor".[6] Since 2017, Eric Lombard has served as its CEO. [7] Since september 2022, Alexandre Holroyd was elected chairman of the board.[8] As of 2022, it is considered the largest sovereign wealth fund in the world by total assets.[9]

Areas of intervention

As set out within the French Monetary and Financial Code, the Caisse des dépôts et consignations carries out missions of public interest in support of the public policies implemented by the State and local government bodies.[4] It contributes to the development of enterprises in line with its own proprietorial interests, and may also exercise competitive activities. It ensures, on behalf of the State and local authorities, missions of general interest:

  • Management of the regulated savings funds (Livret A, LDD, etc.) and financing of social housing through these funds;
  • Management of pension plans (47 institutions in management, more than 75,000 employers, a total management of a retiree in five);[6]
  • Management of public authority (European funds, register of greenhouse gases);
  • Banking management of the French public justice system (notaries, receivers, judicial representatives...) and of Social Security (including consignment);
  • Key stakeholder and provider of funding for the urban policy;
  • Supporting universities in their projects and providing funding for their autonomy;
  • Financing the development of TPE (very small businesses, microcredit) and small and medium enterprises (SMEs) through BpiFrance;
  • Promoting research (I4CE, Novethic) and financing sustainable development;
  • Developing territories alongside local authorities (13 regional offices in the country and overseas);
  • Long-term institutional investor;

Subsidiaries

All the subsidiaries are presented with CDC's ownership percentage[10] and, if applicable, the French State's.

  • Public Investment Bank: Bpifrance S.A. (French State 50%, CDC 50%): Development of shareholding and funding for SMEs
  • Insurance: CNP Assurances 41% before march 4th 2020, 0% since (ceded to La Banque Postale, "La Poste" Group): Personal Risk insurer
  • Postal & banking network: La Poste (French state 74% / CDC 26%): Local banking and postal services
  • Real Estate:
  1. SNI 100%: Social real estate
  2. Exterimmo: 100% : financing of energy retrofitting for public buildings
  3. Icade 39%: Real estate
  • Services:
  1. CDC Arkhineo 100%: archiving and long-term conservation of electronic data
  2. Transdev 70% Transportation
  3. Egis 75% Construction engineering
  4. SCET 100% : Project engineering company
  5. Compagnie des Alpes 40% : Leisure and accommodation
  6. Belambra clubs 34%: Leisure and accommodation
  7. France Brevet 50% CDC, 50% French State: Patent monetization and investment fund

International presence

Independently of the presence of the operational subsidiaries, the Caisse des Dépôts group ensures an institutional presence internationally. Caisse des Dépôts develops bilateral and multilateral relations with partner institutions which allow for the promotion of long-term investment and the development of investment projects in France and abroad, particularly in projects relating to the energy transition.[11]

Activities in Europe

The European level takes on a crucial importance for the Caisse des Dépôts group taking into account the drive and influence of the European Union on investments and public interventions in France.

Promotion of long-term investment

Since the Financial crisis of 2007–08, Caisse des Dépôts, along with other public financial institutions in the European Union, has undertaken the promotion of the specific model of asset management with a long term horizon. In 2009, Caisse des Dépots, Cassa Depositi e Prestiti, the European Investment Bank and Kreditanstalt für Wiederaufbau (KfW) created the Long Term Investors Club (LTIC) with the aim of bringing together worldwide institutions to emphasis common identity as long-term investors, to encourage cooperation and to foster appropriate conditions for long-term investments. Today the Long-Term investors Club gathers 18 financial institutions and institutional investors mainly from G20 countries, representing a combined balance sheet total of USD 5.4 trillion.[12] Also in 2011, Caisse des Dépôts and other institutional investors held a national summit on long-term investment in France. From the summit a Report was drafted and it gained momentum in the financial establishment. This led to the creation of the "task force of the Paris stock exchange on long term investment"[13] under the guidance of former financial director of AXA insurance company Gerard de la Martiniere. Still active today, the task force is dedicated to the promotion of the model of long term investment to the institutions of the European Union on a regulatory, fiscal, accounting and prudential level.[14] After the publication of the European Commission Green Paper on the long-term financing of the economy, in July 2013, Caisse des Dépôts, together with the European members of the Long Term investors Club, cofounded the European Long Term investors Association. This association allows for the undertaking of joint actions in order to highlight this specific investor model with public stakeholders and the European Union.The Eltia gathers 27 European long-term financial institutions. With a combined balance sheet of €2.45 trillion, ELTIA's goal is to promote long-term investment in alignment with the objectives and initiatives developed by the European Union. Caisse des Dépôts also contributes to the work of the European Parliament Intergroup on long term investment and reindustrialisation which was implemented at the start of the election of the European Parliament in 2014.

Public investment stakeholder in Europe

  • Marguerite Fund

Caisse des Dépôts is one of the investors brought together in the Marguerite Fund which combines the contributions from public institutions (CDC, KfW, CdP, etc.) to create investments in Europe. The first achievements were put into operation from 2014 and the investment programme will be completed in 2016.

  • Participation to the "Investment Plan for Europe" launched by the Commission Juncker (2014–2019)

As a National Promotional Institution (NPI) from the European Union, Caisse des Dépôts is in partnership with the European Investment Bank and the European Commission in the implementation of the European Commission Investment Plan for Europe. As such Caisse des Dépôts has committed to provide €8 billion in the form of loans, equity and guarantees to projects under financing from the European Fond for Strategic Investment (EFSI), enhancing the leverage potential of the Fund.[15] Also Caisse des Dépôts contributes to the European Investment Advisory Hub (EIAH) and delivers an advisory services model along the EIB.

Activities in the world

Caisse des Dépôts maintains bilateral and multi-lateral relationships. These partnerships, historically deployed with its counterparts in Africa and the Maghreb, have also developed with institutions and public banks in China and Brazil. In 2011, with the Moroccan CDG, Caisse des Dépôts organized the Caisse des Dépôts Global Forum which promotes long-term investment and public funding models for economic and social development. The Forum organises a biannual meeting, the last session of which was held in Tunis in April 2015.[16]

  • Inframed Fund

Caisse des Dépôts is an investor in the Inframed fund launched in 2010 with other public institutions from the Mediterranean region. Inframed is targeting €385mn of investments into infrastructure development projects.

History

1816: Creation of the Caisse des Dépôts

Corvetto, Louis-Emmanuel, by Quaglia

The Caisse des Dépôts et Consignations was established in 1816 by Louis-Emmanuel Corvetto, Finance Minister under King Louis XVIII, to safeguard public funds, including the country's civil servants' pension funds and retirement accounts. According to article 110 of the French law of 28 April 1816: "Deposits, consignments and services relating to the Legion of Honour, to the channel company and to pension funds [...] will be administered by a special body under the name Caisse des Dépôts et Consignations." The three rulings of 3 July 1816 defined the major areas of activity of the new body: consignments; voluntary deposits from individuals or public bodies and funds from the legal professions; pension funds: since 1853, Caisse des Dépôts has been managing pension funds of civil servants. Other activities include the indemnification of settlers of Santo Domingo (1825), the management of Compagnie des quatre canaux, the management of the accounts for the Legion of Honour and financial services for the army.[17] By law, Caisse des Dépôts uses its funds mainly to purchase public "annuities" and therefore contributes to the funding of the French state.

1822: Territorial development

Caisse des Dépôts granted its first territorial development loan for the development of the Port of Dunkirk in 1822 and acquired, again for the first time, securities issued by the Compagnie des quatre canaux. Caisse des Dépôts would then participate in funding key development and equipment stages of the country, making an important contribution to the reconstruction of France after the Second World War.[18] The Local Authority Equipment Aid Fund (CAECL), created in 1966 to complete its funding via market funds, would give birth to the Crédit Local de France (CLF) in 1987. In 1996, the merger between Crédit Communal de Belgique and Crédit Local de France, created Dexia which is no longer part of the group.

1837: Centralisation of livrets d'épargne savings accounts

The French parliament decided that the funds collected by the local caisses d'épargne savings accounts should be centralised and employed by Caisse des Dépôts from 1837. This provision was extended to the Livret A account from La Poste during the creation of the Caisse nationale d'épargne in 1881.[19]

1850: Pensions and personal protection

Caisse des Dépôts has been managing the Civil Service Pension Fund since 1816, and the first Old-Age Pension Fund (French acronym: CRV) since 1850, which extended the personal protection scope to a much broader section of society. The first two life insurance funds to be set up – National Insurance Fund in the event of Death (CNAD) and National Insurance Fund in the event of Accidents (CNAA) – were also managed by Caisse des Dépôts. These would merge in 1959 to become CNP (now CNP Assurances). Floated in 1998, CNP Assurances was in 2013 the number one personal insurance company in France.[20]

1850: Investments and companies

With the broadening of its missions, Caisse des Dépôts invested the funds which were entrusted to it. From 1850, it participated in the capital of newly created railways companies. The 1931 Finance Act authorised Caisse des Dépôts to invest inflows to the savings funds in corporate shares and bonds. From 1994,[21] it has also invested in SMEs with the SME Innovation programme, to strengthen their equity, encourage innovation and support the risk capital market. The creation of CDC Entreprises, which succeeded CDC PME created in 1998, and Qualium Investissement, created in 2004, aimed to support venture capital activity, which would be strengthened in 2007 by the creation of a new subsidiary, le Fond Stratégique Investissement (FSI). In 2013, the merger of CDC Entreprises and FSI gave birth to the Public Investment Bank.

1889: Telephony then digital

In 1889 the French state acquired the structuring of the private telephone networks, via a "contribution" from Caisse des Dépôts to the Treasury. At the end of 1930, the loans from the public body to local authorities allowed for the creation of a national telephone network.[22] Nowadays, Caisse des Dépôts is investing in fast and superfast broadband infrastructure in France. In 2000, Caisse des Dépôts was entrusted with the creation of the cyberbase programme, the aim of which was to deploy digital public spaces over the entire French territory to encourage the development of Internet use and new information technology. Since 2003, it has been investing in the spread of Digital Work Spaces (ENT) which offers digital services to educational institutions (schools, secondary schools and universities).[23]

1890: Mandates and deposits

Since 1890, under a mandate from the French state, Caisse des Dépôts has been receiving funds deposited by individuals at notaries (notably during inheritance or property transactions), creating a business which has developed over the 20th century. Nowadays, the scope of its missions has widened, it includes funds from administrators and legal representatives, court clerks, bailiffs, etc.. Moreover, it was entrusted with the management of new mandates like the Social Cohesion Fund (FCS) which is able to guarantee loans to natural or legal persons and also grants loans to job-seekers or social minima recipients creating their own company. Since 1816, in accordance with its role as a trusted third-party, Caisse des Dépôts has been exercising the profession of consignee, which consists of keeping sums or amounts over which legal disputes or disagreements still exist.[24] Since 2014, it has been developing this trustee and lender business on behalf of third parties, as well as managing the Personal Training Account (CPF),[25] dormant accounts and the Programme of investments for the future.[26]

1905: Funding of social housing

Caisse des Dépôts granted, out of its own funds, its first loans to social housing in 1905. In 1908 the French state entrusted it with the management of its housing loans and the French law of 26 February 1921 authorised loans on savings funds for low-cost housing (HBM), prefiguring the first social housing (HLM). The French law of 1928, known as "Loi Loucheur",[27] did not change this mission, rather it strengthened Caisse des Dépôts' role through a programme of large scale: 200,000 low-cost homes and 80,000 average rent homes. This role of funding social housing was strengthened after the Second World War by the implementation of different regulated saving centralisation systems.[28]

1954: Creation of the first subsidiaries

Several subsidiaries were founded since 1954 : Scic, a real-estate company in 1954 (it became Icade in 2003), Scet in 1955, a service provision cluster for the local semi-public companies (SEM) for spatial planning, VVF in 1958, specialising in social and family tourism and finally Scetauroute in 1970, in the industry of motorway facilities . The development of services has since widened to the public transport sector for passengers with Transdev in 1990, to engineering infrastructure with Egis in 1998 (via the merger of Scetauroute and other engineering subsidiaries) and lastly to the business of ski and leisure park operation with the Compagnie des Alpes in 1989. In 2004, Caisse des Dépôts acquired all the equity of the Société Nationale Immobilière (SNI), which became the number one social landlord in France.[29]

1960: Decentralisation

Since 1960, the public body has been decentralised into 25 regional managements which implement the group's strategy on the ground. From January 2016, in accordance with the 2015 territorial reform,[30] there are 13 regional managements.

1966: Environment

In 1966, Caisse des Dépôts has created the Société Forestière (Forestry Company). Since 2000, it has been producing various studies on climate research (CDC Climat and Novethic). In 2005, Caisse des Dépôts was behind the creation of the European Carbon Fund and the implementation of the national register of greenhouse gas emission quotas. In 2008, Caisse des Dépôts put in place a "compensation fund for biodiversity" via its specialised subsidiary CDC Biodiversité.

Governance

The Supervisory Board

The CDC Group's principal governing bodies are Commission de surveillance (the Supervisory Board) and Chief Executive Officer (directeur général), as described below.

The 1816's law conferred to CDC a special status designed to guarantee its complete independence by placing it "under the supervision and guarantee of the legislative authorities" through the Supervisory Board (Commission de surveillance) with the aim of protecting CDC against any arbitrary action by the executive powers emanating from the state. Parliament, representing the nation, exercises control over CDC's activities and ensures its autonomy. It exercises this dual mission through the Supervisory Board which acts as guarantor of CDC's independence, provides general oversight and control and carries out the missions entrusted to it by law. Once a year, the Supervisory Board sends its annual report to Parliament. The law on the Modernization of the Economy of 4 August 2008 (PACTE) enlarged and strengthened the role of the Supervisory Board and consolidated parliamentary oversight of the CDC Group. This unique status of the group confers a guarantee of independence to CDC unlike any other entity. Equally, the "PACTE" law (Action Plan for Business Growth and Transformation) of 22 May 2019 expanded the Commission de surveillance's mission and responsibilities particularly regarding strategic issues, the adoption CDC's budget and investment decisions.

The missions of the Supervisory Board are set out by the French Monetary and Financial Code in its Articles L. 518-7 to L. 518-9 and were amended in 2018 by the "PACTE" law (Action Plan for Business Growth and Transformation). Pursuant to Article L. 518-7, the Supervisory Board provides for a permanent control over the CDC's management ensured by its chief executive officer. The Supervisory Board can delegate some of its powers to the Chief Executive Officer, who shall report on the decisions he has taken pursuant to this delegation. The Supervisory Board must have sufficient resources to ensure the proper exercise of its functions and of its members' mandates. The Supervisory Board deliberates at least four times a year concerning: (i) the strategic positioning of the public establishment (ie CDC) and of its subsidiaries including the medium-term plan; (ii) the implementation of the public interest functions of CDC; and (iii) the determination of the investment strategy of the public establishment and of its subsidiaries. Article L. 518-7 also provides that the Supervisory Board adopts the CDC budget upon the Chief Executive Officer proposal, such budget being subject to the Minister of Finance's approval. The Commission de surveillance also determines the prudential model and approves the debt instrument issuance program together with the maximum annual volume of the said debt instruments.

The SC approves the guidelines of the internal control system proposed by the chief executive officer. It also deliberates on the CDC's policies relating to professional equality between men and women policies and equal pay. Pursuant to Article L. 518-9, the Supervisory Board carries out every control and verification it requires to perform its functions and obtains any documents it believes necessary. The Supervisory Board can send to the Chief Executive Officer comments and opinions and can decide whether to publish them. A plenary meeting of the Supervisory Board is held at least once a month and the scrutiny and oversight are also currently provided by the following Board committees: Audit and Risks Committee created in 2003; Savings Fund Committee created in 2003; Investment Committee created in 2008; Nominations and Wages Committee created in 2008; the Strategic Committee created in 2018; and CSR (Corporate Social Responsibility) and Ethic Committee created in 2022.

Under the provisions of the PACTE law:

  • Article L. 518-4 of the French Monetary and Financial Code provides that the Supervisory Board is composed of 16 members with a three-years term of office consisting of: two members of the National Assembly (Assemblée nationale) commission responsible for finance (at least one of whom must belong to a group which has stated that it does not support the Government); one member of the National Assembly (Assemblée nationale) commission responsible for economic affairs; one member of the Senate (Sénat) commission responsible for economic affairs; one member of the Senate commission responsible for finance; the director general of the Treasury of the Ministry responsible for the Economy who may be represented; and five members designated on account of their expertise in finance, accounting or economics 'spheres, or in that of management (three designated by the President of the National Assembly after opinion of the Finance Committee of the National Assembly and two designated by the President of the Senate after opinion of the Finance Committee of the Senate); three members appointed by decree chosen on account of their expertise in finance, accounting, economics or legal spheres or in that of management; and two members representing employees of the CDC and its subsidiaries.
  • CDC is subject to the accounting rules governing commercial matters. Therefore, the provisions relating to the Caissier Général (as provided by the Article L. 518-13 of the French Monetary and Financial Code) and the provisions relating to the control by the Cour des comptes (France's supreme audit institution) have been repealed.
  • Statutory auditors are invited to attend all Supervisory Board meetings discussing the annual or interim financial statements (Article L. 518-15 of the French Monetary and Financial Code).
  • The French Prudential Control Authority oversees prudential controls over CDC (Article L. 518-15-2 of the French Monetary and Financial Code).
  • The fraction of net income of CDC's activities paid every year to the State will be fixed by decree, after the Supervisory Board has delivered its opinion and provided that its payment cannot affect either the CDC solvency or compliance with prudential rules (Article L. 518-16 of the French Monetary and Financial Code).

The chairman and members of the Commission de surveillance as of [today] are:

  • Alexandre Holroyd, chairman - member of the French National Assembly for the third electoral district des Français établis hors de France
  • Anne-Laurence Petel, member of the French National Assembly for Bouches-du-Rhône 14th electoral district
  • Marc Le Fur, member of the French National Assembly for the Côtes-d'Armor 3rd electoral district
  • Emmanuelle Auriol, qualified person appointed by the president of the National Assembly
  • Denis Duverne, qualified person appointed by the president of the National Assembly
  • Florence Parly, qualified person, appointed by the president of the National Assembly
  • Arnaud Bazin, senator of Val d'Oise
  • Viviane Artigalas, senator of Hautes-Pyrénées
  • Jean-Yves Perrot, qualified person appointed by the president of the Senate
  • Evelyne Ratte, qualified person appointed by the president of the Senate
  • Jean-Marc Janaillac, qualified person on behalf of the state
  • Marie-Claire Capobianco, qualified person on behalf of the state
  • Claude Karpman Nahon, qualified person on behalf of the state
  • Gabriel Cumenge, assistant director of Trésor executive management, representative of the director general of the Treasury
  • Beatrice De Ketelaere, staff representative of the Caisse des Dépôts
  • Pierre Fourcail, staff representative of the Caisse des dépôts

The chief executive officer

The chief executive officer is responsible for administering the institution's funds and assets and is assisted both by Caisse des Dépôts' Management Committee and by the Group Management Committee, both of which he chairs. The chief executive officer of Caisse des Dépôts, appointed for a period of five years by decree of the President of the French Republic, takes an oath of office before the Supervisory Committee.[31] Éric Lombard has served as its CEO since 2017.

Due to "Pacte law" the general cashier position does not longer exists see https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000038496102/ et https://www.lexbase.fr/article-juridique/51430541-textes-loi-pacte-la-reforme-de-la-caisse-des-depots-et-consignations#:~:text=A%20l'heure%20actuelle%2C%20l,des%20valeurs%C2%BB%20%5B16%5D.

References

  1. 1 2 3 "Rapport financier 2022 - Groupe Caisse des Dépôts" (PDF). Retrieved 10 May 2023.
  2. ↑ "assets under management up by €17bn to €244bn at end-2022" (PDF). www.caissedesdepots.fr. 31 December 2022. p. in PDF on Page 3 in Paragraph 1.
  3. ↑ Filiales CDC Archived 2 November 2009 at the Wayback Machine Sur le site caissedesdepots
  4. 1 2 Article L. 518-4 of the French Monetary and Financial Code
  5. ↑ Standard and Poors Global, Ratings Direct : Caisse des Depots et Consignations, May 12 2016 Archived 20 December 2016 at the Wayback Machine.
  6. 1 2 Article L. 518-2 of the French Monetary and Financial Code
  7. ↑ "Éric Lombard appointed chief executive officer". Archived from the original on 9 September 2018. Retrieved 18 December 2017..
  8. ↑ https://www.caissedesdepots.fr/modele-unique/gouvernance/alexandre-holroyd
  9. ↑ "Rapport Annuel 2021 - Groupe Caisse des Dépôts". Groupe Caisse des Dépôts. Retrieved 30 March 2023.
  10. ↑ Archived 9 September 2018 at the Wayback Machine Caisse des Dépôts, Investor presentation, June 2016
  11. ↑ Frédéric Thiveaud, La Caisse des dépôts, Paris, PUF, coll. " Que sais-je ? ",2016, 126 p.
  12. ↑ Message from LTIC Chairman
  13. ↑ Archived 17 August 2016 at the Wayback Machine Le plan français pour défendre l'investissement de long terme in "Les Échos", 17 November 2011
  14. ↑ "Manifesto for the promotion of long term investment", April 2016
  15. ↑ European Commission, Investment Plan for Europe: France to contribute 8 billion €,Press release, 6 March 2015
  16. ↑ Ouverture vendredi à Tunis du 3e Forum mondial des caisses de dépôts in "Kapitalis", 16 April 2015
  17. ↑ Jeanne Schpilberg-Katz, La Caisse des dépôts, Paris, PUF, coll. " Que sais-je ? ", 2008, 128 p.
  18. ↑ Frédéric Thiveaud, La Caisse des dépôts, Paris, PUF, coll. " Que sais-je ? ",2016, 126 p.
  19. ↑ Mathias Thépot, Où va vraiment l'argent du Livret A ?, La Tribune, 22 February 2012.
  20. ↑ Association française de l'Assurance, Données clés 2012, 2013
  21. ↑ OECD, Social enterprises, 2000
  22. ↑ Philippe Malvé (dir.) et Jean-Marie Thiveaud (dir.) (tiré à part de la Revue d'économie financière), La Caisse des dépôts et consignations : 175 ans, Paris, Le Monde, 1991, 633 p. (ISBN 2-87-899-027-7)
  23. ↑ Archived 21 June 2016 at the Wayback Machine Projets ENT
  24. ↑ Pierre Solanet et Maurice Chasse (préface), La Caisse des dépôts et consignations, Paris, Librairie du Recueil Sirey, 1943, 278 p.
  25. ↑ CDC, 40 million vocational training personal accounts (CPF) open, 5 January 2015.
  26. ↑ ,10 billion additional euros to invest for the future, French government.
  27. ↑ Frouard Hélène,La Caisse des dépôts et les HBM (1894–1921). Un long apprentissage, Histoire urbaine 3/2008 (n° 23), p. 23-40
  28. ↑ Roger Priouret et François Bloch-Lainé (postface), La Caisse des dépôts : Cent cinquante ans d'histoire financière, Paris, PUF, 1966
  29. ↑ Interview of Andre Yche, President of SNI Management Board in Kurtimmo,real-estate newspaper
  30. ↑ French Government, Territorial reform, 21 November 2014
  31. ↑ Jean-François Boudet, La Caisse des dépôts et consignations, Histoire, statut, fonctions,Paris L'Harmattan, 2006.

48°51′33″N 2°19′42″E / 48.85917°N 2.32833°E / 48.85917; 2.32833

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