Fonds de Reserve pour les Retraites, Paris, is searching for passive equity managers to run a combined €2 billion ($2.7 billion), a spokesman confirmed.
Passive managers tracking cap-weighted indexes will run €1 billion, while the remainder will use managers tracking non-cap-weighted indexes. All of the mandates will be for indexes in developed countries in Europe, the U.S. and Asia.
This is the FRR’s first move into non-cap-weighted passive strategies. The move was driven by recent research showing benefits of diversifying away from cap-weighted strategies, the spokesman said.
Proposals are due Feb. 28. More information is available at www.achatpublic.com/accueil/frr/eng/medias/index.php.
These mandates will not be affected by recent decisions by the French government to draw down the fund’s assets over time to help plug budget deficits, the spokesman said.