FRANCE - The €32bn French reserve fund (FRR) is looking for managers for two US small cap equity portfolios totalling €500m.
It is the fund's first foray into this asset class as it thinks it can potentially provide high alpha, a spokeswoman told IPE today.
"With this new asset class launched today, the FRR has now an exposure to all US equities," she said.
The FRR launched its request for proposal (RFP) today, with the aim of awarding two active management mandates for the portfolios.
Looking at the nature of the asset class, the fund decided that two mandates, rather than one, would be most appropriate.
"The indicative amount allocated to each mandate is €250m," the fund said.
A restricted procedure will be used to award the mandate and interested asset management firms have until September 17 to submit proposals to the FRR.
The FRR announced earlier this month it was also looking for managers for a new French equity portfolio worth in excess of €500m. The deadline for this tenders is August 8.
The fund said it would appoint two managers also for this mandate, one as a stand-by, to the newly-created mandate.
The fund also plans to roll out an RFP this autumn designed to award mandates for passive replication of the commodities indices, according to a statement made earlier this month.