French reserve fund issues E16bn mandate details
FRANCE – The French pension reserve fund has announced details of 27 mandates worth a combined 16 billion euros to be put out to tender in late July or early August this year.
The portfolio is to be based on specialised mandates for each asset class and management style. Sizes of mandates may increase or decrease, and mandates are set for a minimum of three years.
For each lot, stand-by mandates will be awarded to the best non-selected ranked offer. It is designed as a reserve mandate to be effective only if the FRR decides.
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.
Details on how to apply, and breakdowns of each mandate and asset class can be found in English and French on the website www.fondsdereserve.fr
The Fonds de reserve pour les retraites was established in 1999 to provide future support for the French pay-as-you-go state pension system through financial investments.
Meanwhile, the French parliament today officially adopted the controversial pensions bill that will see contribution periods increased across all sectors.