The Fonds de Réserve pour les Retraites (FRR) has awarded €400m in mandates for active Japanese equities across all capitalisations, using a “blend” style.
The fund appointed FIL GESTION, Nomura Asset Management Europe, and Lombard Odier Funds (Europe) for a five-year contract, with a possible one-year extension.
On 27 February, the FRR initiated a restricted call for tenders to select investment service providers to manage up to three such mandates.
The objective of the investments is to achieve exposure to Japanese equities across all capitalisations, benchmarked against the Russell Nomura Total Market Index customised for taxation, controversial weapons, and tobacco.
“This “blend” management approach leverages the extensive opportunities offered by the Japanese equity market, an asset class integral to the FRR’s strategic allocation since its inception,” the fund announced.
As a member of the Net Zero Asset Owner Alliance (NZAOA), the FRR is “committed to aligning its investment portfolio’s net greenhouse gas (GHG) emissions with the Paris Agreement”, it added.
The selected managers are tasked with implementing the FRR’s Responsible Investor Strategy, aiming for a 60% reduction in GHG emissions, based on the reference index level at the market’s inception, by 30 June 2029.
The managers are also required to provide detailed and regular ESG reporting.
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