FRANCE – The FRR, the €26.6bn Fonds de Réserve pour les Retraites or French Pensions Reserve Fund, has re-tendered a €16bn transition broking brief it awarded to Goldman Sachs less than two years ago.

It said: “The selection process is being reinitiated to handle the increase in volume beyond this threshold, which is expected to materialize in the months to come.”

An official at the fund stressed Goldman was not being fired and that it was “very happy” with the firm. At the end of the process Goldman may retain the mandate - if it decides to re-enter. The FRR selected Goldman in July 2004 for a three-year contract.

At the time the FRR said Goldman would provide centralized securities brokerage services throughout the initial portfolio-building period of the fund, with the aim of minimizing transaction costs and market impact.

“The role of the transition broker will be to centralize the execution of orders to buy and sell financial instruments on behalf of the FRR - acting via asset managers,” the fund said today.

It added that the use of a transition broker has been “very positive, particularly in terms of keeping brokerage fees down and enhancing transition management in general”.

The deadline for proposals is June 1. No consultant is being used in the tender process.

In February the fund announced a visual identity facelift and realignment of its organisation to reinforce financial management of the fund.