FRANCE - The €31.3bn Fonds de Reserve pour les Retraites (FRR) has launched a search for a new currency manger.
State Street Global Advisors (SSgA) has been running a currency mandate for the FRR since 2004.
A FRR spokesman told Global Pensions: “We are tendering due to the legal requirements governing the appointment when the contract finishes at the end of this year. SSgA may well win the contract again as we are not carrying out this process because we are dissatisfied with them.”
She added that the FRR had experienced a successful inaugural venture into the asset class.
In terms of the currency manager's role, the FRR said this would involve a “double mission”, firstly by managing the fund’s currency exposure but also advising on the portfolio's allocation to currency.
Proposals for the currency position must reach the FRR by noon, 3 August, 2007.
In a separate development, following a previous tendering process for one stand-by and five asset management mandates worth €5.8bn, the FRR has awarded three contracts for passive Eurozone large caps.
Vaguard Investments Europe S A, Barclays Global Investors and UBS Global Asset Managment France won the contracts which the FRR said would not be under €500m.
The mandates should run for three years, and the option of extending to a fouth year is also available.
These developments come after the FRR awarded several fund of funds mandates worth a total of €1.35bn to three private equity managers, at the beginning of June.
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