FRANCE – The 13.1 billion euro French reserve state fund has appointed Mercer Investment Consulting to assist with selecting investment fund managers.

Mercer’s team managing the project will be based in Paris.

Last month, the head of the fund, Francis Mayer, confirmed that 55% of the Fonds de reserve pour les retraites will be allocated to investments in equities and 45% to fixed interest securities.

Speaking at a press conference, Mayer announced that 38% of the fund would be invested in euro zone equities, and 17% in equities outside of the euro zone. 38% will also be allocated to fixed income securities within the euro zone and 7% to those outside.

Mandates for the management of the fund will be put out to tender in the second half of 2003. Both domestic and foreign asset managers will be considered.

The FRR was established in 1999 to provide future support for the French pay-as-you-go state pension system through financial investments.