French reserve fund delays manager shortlist
FRANCE – The Fonds de Reserve pour les Retraite (FRR) is to delay announcing the manager shortlist for its 16 billion euros of mandates until December.
The FRR originally planned to inform those managers that have made it through to the second round of the tender process by the end of November. But it will now issue the request for proposals in December.
The FRR told IPE that it is now awaiting a decree by the French government regarding durations of mandate contracts in France.
At present, contract length is three years, but this is expected to be lengthened and announced by the government at the beginning of December.
An alteration to the law will mean that the FRR mandates could be longer than the three years originally stated, and short-listed managers will now not receive documentation for the request for proposals relating to the specific asset classes until the decree is finalised.
The FRR will be communicating with the short-listed managers in the first ten days of December.
The final selection of fund managers will be announced in the first quarter of 2004.
The FRR tendered 27 asset management mandates together with 12 stand-by mandates for the 16 billion euro fund in July this year. The application period closed on September 12.
There are twelve different asset classes in total. Thirty-eight percent of the fund will be invested in euro-zone equities. Of this amount, there are three passive mandates of one billion euros each, and seven active mandates of 200 million euros and 620 million euros.
Seventeen percent of the fund is to be invested in non-euro-zone equities, comprising one passive mandate of 640 million euros and seven other mandates ranging from 200 to 460 million euros.
In fixed income securities, 38% is to be invested in euro-zone bonds and 7% in non-euro-zone bonds. This comprises six 960 million euro active mandates, one inflation-linked international bond mandate, and two further mandates each of 480 million euros.