FRANCE – France's €36.6bn Fonds de Réserve pour les Retraites (FRR) is tendering a medium to large-cap US equity mandate for one or several asset managers.

The FRR has split the mandate into two lots.

For the first, selected managers will be asked to employ a value strategy to invest up to €500m in medium and large-cap US equities.

For the second, the particulars will be the same, apart from calling for a growth strategy.

The FRR stressed that the amounts were only indicative and could vary over time.

The pension fund also asks that asset managers employ an index with characteristics similar to the Russell 1000 Value for the first lot and the Russell 1000 Growth for the second.

They will also need to stick within the scheme's 10% maximum tracking error guidelines.

Additionally, the French reserve fund expects selected asset managers to run an active management strategy for both mandates, which will be awarded for four years, with the possibility of a one-year extension.

The closing date for applications is 8 July.

Earlier this year, the FRR tendered a French small-cap equity mandate and a European small/mid-cap mandate.

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