France's FRR looks for service provider to monitor financial risk
FRANCE – The €36.6bn Fonds de Réserve pour les Retraites (FRR) is seeking a service provider to monitor and mitigate additional financial risks arising from the fund's investment strategy.
Launching a request for proposals last week, the FRR said it aimed to select an independent service provider that would work alongside the fund's managers to control the risk of companies in which it has invested failing to comply with the FRR's responsible investment charter.
According to the FRR, the contract will run for two years, with the possibility of renewal for a further year.
Applicants must reply to the FRR by 26 June, in accordance with the consultation procedure regulations.
In 2008, as part of its responsible investment charter, the French reserve fund put in place a monitoring process to avoid financial risks that could impact its investments and reputation.
"Risks can arise from the failure of companies, in which the FRR is invested, to take into account global principles such as the United Nations Global Compact, as well as those resulting from international conventions ratified by France, in particular at the Ottawa and Oslo conventions," the FRR said.
The FRR therefore set up a responsible investment committee, which is in charge of monitoring and preventing that risk, in partnership with the asset managers selected by the FRR and the fund itself.
It added: "The committee relies on the regular analysis provided by specialised agencies and the proposals made by the board to evaluate potential non-compliance with fundamental standards and decide on future orientations."