Fonds de Reserve pour les Retraites, Paris, hired six active equity managers to run a combined 1.88 billion euros ($2.33 billion), the final selections in a search the new 16.5 billion euro fund launched last July.
In U.S. large caps, Deutsche Asset will run 460 million euros in value and AGF Asset Management will run 460 million euros in growth, according to a statement from the system. Robeco Institutional was named standby manager for the value portfolio, and Goldman Sachs for growth.
AXA Investment and Schroders will run 240 million euros each in pan-European non-eurozone equities, with INVESCO as standby manager, the statement said. In Pacific-area equities, including Japan but excluding emerging countries, Capital International and Morgan Stanley will run 240 million euros each, with Nomura Asset as standby.
Funding will come from taxes and the privatization of state-run companies. Mercer Investment Consulting assisted.
Separately, by the end of the year the system will consider adding its first commitments to private equity and socially responsible investments, according to Christelle Cuzou, spokeswoman. The plan's supervisory board would need to approve an RFP before it would be issued, Ms. Cuzou said. Fund officials have not decided whether Mercer will assist nor have they determined the timeframe or portfolio sizes, she said.
