FRANCE - The €29.1bn French Pensions Reserve Fund, Fonds De Reserve Pour Les Retraites (FRR) has dropped Société Générale Asset Management (SGAM) from a €331.5m US mid-cap equities mandate for performance reasons.
"The FRR has decided to terminate a management mandate contracted with due to an ongoing unsatisfactory performance," the fund said in a release this morning.
The FRR said it had delegated financial management of the mandate to Trust Company of the West (TCW), a subsidiary of SGAM.
A SGAM spokesperson said the firm respected the FRR's decision as well as its duty to review mandates and management decisions. He said the performance of the mandate had been positive since TCW has been managing it.
"This type of mandate constructs itself over the medium term and therefore there was the time horizon to be taken into consideration," he added.
The mandate was initially funded in November 2004 for a period of five years. The fund said all transactions related to portfolio termination were successfully completed. The fund said a new RFP for the management of the same asset class would be launched in the near future.
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