FRANCE - The massive e16bn French Pensions Reserve Fund (FRR) has awarded a transition manager mandate to Goldman Sachs for a period of three years.
Goldman Sachs will provide centralised securities brokerage services throughout the initial portfolio-building period of the fund, with the aim of minimising transaction costs and market impacts.
The manager will also help to develop a global reporting capability and centralised monitoring as the FRR builds toward full operation.
A fund official said: “The objective is that main part of the fund’s assets would be invested through the transition broker. The fund does not plan to use any other transition manager.”
The pension fund said that the mandate was awarded after a process known as “competitive dialogue” under the French Procurement Contracts Code, and after having consulted an RFP commission.
Financial consultant Mercer Investment Consulting and legal counsel Allen & Overy advised the fund.
“The FRR was pleased with the very high quality of the dialogue that led to the elaboration of the specifications for this mandate, as well as with all of the proposals submitted, particularly considering that this type of mandate constitutes an innovation for French institutional investors,” said FRR in a statement.
The People's Pension, Atlas Master Trust and The Cheviot Trust have been granted authorisation from The Pensions Regulator (TPR), taking the total number of authorised master trusts to 18.
Pension schemes have been warned they may now face a more challenging legal test if they wish to fix drafting errors.
The Greene King Pension Scheme has appointed XPS Pensions as its actuarial and investment adviser following a competitive tender process.
Professional Pensions has compiled a list charting the progress of master trust authorisation. View our list in full here...