FRANCE - The French pension fund manager Fonds de Réserve pour les Retraites (FRR) has hired Crédit Agricole Asset Management (CAAM) to run various asset classes when needed.
FRR said: "This mandate seeks to serve as a tool for gaining exposure to all of the asset classes in which the FRR is invested, as needed, for example by temporarily replacing a deficient manager."
The pension fund manager launched the search in April.
FRR has been making a slew of manager changes this year, including firing Robeco Institutional Asset Management from a €1.5bn (US$2.1bn) Eurozone bond mandate in July. In April, FRR doled out €1.1bn in equity mandates to seven managers.
FRR also recently changed its asset allocation line-up to reflect its move to reduce the equity exposure in its €28.9bn portfolio. The new allocation, announced in June, earmarked 45% to equities, 25% to fixed-rate bonds, 20% to indexed bonds and 5% each to real estate and commodities. Investments in equities, real estate and commodities combined can range from 40% to 60%.
CAAM's contract will last for three years.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.