Fonds de Reserve pour les Retraites, Paris, is searching for one or more managers to run a combined €8.5 billion ($9.6 billion) in euro- and U.S. dollar-denominated corporate bonds.
The €36.6 billion pension fund is looking for managers to run actively managed allocations, according to a statement on its website, split into two mandates.
The first allocation is to euro-denominated corporate bonds, with an allocation of up to €5.5 billion. The second is for U.S. dollar-denominated corporate bonds, with an allocation of up to €3 billion. The statement said the FRR “shall permit a diversification of 15% on issues rated up to BB-.”
Each contract runs for four years, with the possibility of a further one-year extension.
The funding source could not be learned by press time. The pension fund had a 21% allocation to corporate bonds, as of Dec. 31, 2013, according to its latest available annual report.
Further information and an RFP are available on FRR's website. Proposals are due Feb. 23. A hiring date was not specified.
Executives at the pension fund could not be reached for comment by press time.