State Street Global Advisors (SSgA), the fund management arm of State Street Corporation, says it has been selected by the French pensions reserve fund, Fonds de Reserve pour les Retraites (FRR), to manage an overlay mandate for a three-year period.
State Street Global Advisors France will be responsible for managing and hedging currency risk for the non-EUR portion of the Euros 16 billion fund. State Street Global Advisors France will also provide macroeconomic and financial advisory services to the FRR executive board and implement tactical investment decisions on their behalf through an overlay strategy.
“We are delighted to have been awarded this important overlay mandate from the FRR, which illustrates our success here and confirms our commitment to the French institutional market,” says Jean-Francois Schock, regional managing director for State Street Global Advisors in Europe. The key success variable in winning this deal was our ability to combine asset allocation and currency overlay as part of one mandate, delivered through a single local access point.”
Alan Brown, group chief investment officer at State Street Global Advisors added that State Street was pleased to be servicing a pension fund pioneer in France. “Through this process, we had the opportunity to observe the professionalism of the FRR teams who succeeded in leading a complex project with great effectiveness, resulting in a balanced panel of fund managers,” he says.