FRANCE - The massive e16bn French Pensions Reserve Fund (FRR) has appointed 16 new external investment managers for four lots amounting to e10bn.
Barclays Global Investors, Crédit Lyonnais Asset Management and Vanguard Investments Europe have been hired to run a passive large capitalisation eurozone equity portfolio. The size of each mandate is around e1bn for a three- year period.
The active small and mid-capitalisation eurozone equity portfolio is split between three managers – AXA Investment Managers Paris, Crédit Lyonnais Asset Management and Société Générale Asset Management – with each manager picking up around e200m for a five-year period. HSBC Asset Management Europe has been appointed to a stand-by mandate.
A fund statement said that in the case of the stand-by manager, FRR reserves the right to “make inflows”, if necessary, to the mandate entrusted to the stand-by manager.
For the passive large capitalisation US equity lot, the fund has hired Vanguard Investments Europe to manage e640 for three years. Barclays Global Investors is the stand-by manager.
FRR has appointed AGF Asset Management, AXA Investment Managers Paris, BNP Paribas Asset Management SA, CDC IXIS Asset Management SA, HSBC Asset Management Europe SA and Robeco Institutional Asset Management for government and non-government (investment grade) bonds. The size of each mandate is roughly around e960m. Crédit Agricole Asset Management has been appointed as the stand-by manager.
The fund is expected to select new managers for the remaining 22 mandates for e6bn by the end of the second quarter 2004.
An FRR statement said that in accordance with the tender regulations, the mandate notification, which is binding on the FRR, will take place only at the end of the contract finalisation period.
“The FRR has just achieved an important step in its manager selection process. It appreciates the high standard of the tenders received from the asset management industry, in Europe or outside Europe,” it added.
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