FRANCE - The Fonds de Réserve pour les Retraites (FRR), the French pension reserve fund, has launched a search for four investment managers to run transition and real estate portfolios for the €26bn fund.
A restricted Request for Proposal (RFP) procedure has been initiated by FRR with the aim of appointing two transition managers to run a mandate of between €15-30bn for a period of three year.
The role will require the managers to "negotiate financial instruments" on behalf of FRR in a "centralised manner" to build up securities portfolios under the best possible cost and confidentiality conditions.
The successful applicants will replace Goldman Sachs, who was appointed in October 2006 to act as transition broker for a €25bn mandate, as the existing mandate is set to expire in November 2009. (See earlier IPE article: FRR re-awards transition broking brief)
Meanwhile, FRR is also looking to select two managers to "create and manage" segregated funds for direct investments in "diversified real estate assets" located across Europe, with the value of each of the real estate mandates expected to be around €500m.
Earlier this month, FRR reported a 6.5% loss in the first quarter of the year, which caused the value of the fund to fall from €27.7bn to just under €26bn, although it confirmed its trustees are continuing to re-examine its investment strategy with the review expected to be concluded by the second half of 2009. (See earlier IPE article: FRR suffers further 6.5% loss)
The most recent manager appointments were announced in April when FRR divided two equity mandates - small caps European equities and a global active value-style US equity portfolio - between seven investment managers. (See earlier IPE article: Market losses lower FRR mandate wins)
Interested candidates in the transition mandate should submit proposals by 23 June 2009, while the deadline for applications for the real estate asset management roles is 26 June 2009. Further information can be found on the FRR website.
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