FRR launches €5 billion search for cash flow-matching portfolio

Fonds de Reserve pour les Retraites, Paris, is searching for money managers to run its €5 billion ($5.3 billion) cash flow-matching portfolio, said Alexandre Van Ooteghem, legal counsel at the pension fund.

The €37.2 billion pension fund will hire no more than three managers to run the portfolio, which is invested mainly in investment-grade sovereign French bonds and Treasury bills.

The contracts will run for six years, with the possibility of a one-year extension.

Mr. Van Ooteghem said the portfolio is currently managed by Allianz Global Investors, Amundi Asset Management, AXA Investment Managers and Natixis Asset Management. These managers may rebid.

He added it is too early to say when executives will make a decision. Proposals are due March 28.

The RFP is available on FRR’s website.