The Fonds de Reserve des Retraites, the €13bn ($14bn) pensions reserve fund created in 2001 to top-up the shortfall in France's pay-as-you go system, is taking the first step towards choosing external asset managers. It will be the largest fund management mandate awarded in France this year and marks a dramatic step forward for the French pension fund industry.

Antoine de Salins, a member of the board of the state-owned fund, said it will ask fund managers to send in proposals in May. A shortlist of applicants will be drawn up by the end of July, but the final selection of candidates will take place in October. "As we are a state-owned entity, we are subject to the Code des Marchés Publiques, a law that establishes complex rules to guarantee all applicants are treated on an equal basis. Inevitably, this makes the timeframe for the selection process considerably longer than for private companies," he said.