LUXEMBURG - The new fund set up to hold Luxembourg's excess pension revenues has issued a tender looking for fund managers to administer its €4bn in assets.

The Fonds de Compensation commun au regime general de pension (FDC), set up by the government in 2004 to hold excess revenues of the Grand Duchy's pension schemes for future allocation, announced that it is tendering its entire assets divided into two lots.

Launching the tender on Monday, the FDC will award on the one hand contracts relating to the management of portfolios of about €1.9bn, composed of US and European equities and bonds, indexed and cash market portfolios, to 21 portfolio managers, including seven reserve mandates, the fund said.

The second lot will comprise of liquidities worth €2.1bn and will be entrusted to four portfolio managers.

Tenders are requested to be drawn up in either German or French; the deadline for requests to participate is November 3.

The reserves of the schemes, which were previously managed internally, will be organised as a SICAV (Société d'investissement à capital variable), an open-ended collective investment scheme.

The tender will be published on Monday in the Luxembourg press.