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.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.