NEWS ON TENDERS
2016 was a busy year for tenders. The FRR started the year by activating 11 new active management mandates for corporate bonds issued in euro (6) and US dollars (5). These new mandates replaced the previous ones to maintain the FRR s exposure to this asset class.
As part of its programme of unlisted investments to support the French economy, and in relation to the EUR 2 billion budget allocated to this, the FRR made several calls for tender:
In April, the FRR launched an initial tender process for French corporate bonds, with an initial amount of EUR 300 million. This contract was split into two lots. The first was intended to finance businesses through private investment (bond issue or loan), the second to finance companies acquisition debt.
At the end of the selection process, Schelcher Prince Gestion and BNP PAM were chosen for lot 1 Private investments. Lyxor Institutional AM and Idinvest Partners were chosen for lot 2 Acquisition debt.
In June, the FRR launched a new call for tenders relating to the selection of private equity funds. This involves investment through funds in companies whose headquarters are located exclusively in France.
The provisional amount that can be allocated to this management strategy may reach EUR 400 million, and could be divided between up to four managers. The final selection will be made in 2017.
In November, the FRR issued a call for tenders in order to select several managers capable of creating and managing a dedicated fund invested solely in the venture capital/innovation equity or equity equivalent capital of companies headquartered in France. These investments are earmarked for financing the initial stages of a company s development, i.e. start-up and growth. The rough amount allocated to this strategy may reach EUR 200 million, divided between up to four managers. For this contract, the final selection of managers should be made in 2017.
2016 also saw the finalisation of the negotiated procedure for selecting managers responsible for new optimised equity index management mandates taking environmental, social and governance (ESG) criteria into account. The final selection involved three managers*, for a rough total of EUR 5 billion.
The FRR also renewed the contract for best execution analysis** as well as a contract for the analysis of its portfolio s non-financial risks***.
* Amundi, Candriam Luxembourg and Robeco Institutional AM B.V. ** Trade Analytics UK Ltd. *** Vigeo SAS.