FRANCE - The 16 billion-euro French Reserve Fund, Fonds de Reserve pour les Retraites, has concluded its second round of appointments, naming 12 managers to run 4.12 billion euros.
“The FFR Executive Board, after conducting an analysis of each proposal received last February and having taken into consideration the opinion issued by the FFR’s Selection Committee, announces today its decision to retain 12 proposals,” the fund said in a statement.
The move follows the fund’s assignment of its first 10 billion euros of assets in April this year.
The managers cover four areas of investment: euro zone large-cap equities, US mid-cap equities, international inflation-indexed bonds and international bonds (non-euro denominated) government and non- government issuers.
All the briefs, except the international inflation-indexed bonds, are to be actively managed .
Euro zone large-cap equities, indicative size 620 million euros over four years:
- AXA Investment Managers
- Capital International
- Groupama Asset Management
- Lombard Odier Darier Hentsch Asset Management
Stand-by mandate: J P Morgan Investment Management
US mid-cap equities, indicative size 200 million euros over five years:
- Societe Generale Asset Management
Stand-by mandate: J P Morgan
International inflation-indexed bonds, indicative size 480 million euros over four years:
- F&C Management
Stand-by mandate: AXA
International bonds, indicative size 480 million euros over four years:
- CDC IXIS Asset Management
- Deutsche Asset Management
Stand-by mandate: Capital International
The FFR said the number of external managers has gone up to 28 with total assets of 14.12 billion euros now assigned to managers .
The selection of the nine managers to run the remaining 1.8 billion euros was “currently under way and should be complete by the end of this month”.
The fund is also looking for a specialised company to monitor the cost effectiveness of asset managers, transaction brokers and overlay managers.
The aim would be to ensure transparency, the fund explained to IPE, adding that the role of Contrôle de la Meilleure Exécution, is required by the EU directive on Investment Services.
More information is on www.fondsdereserve.fr