French civil service pension fund ERAFP is calling for applications to manage €1.2bn worth of “SRI credit bond” portfolios.
The €30bn scheme, which had 49.8% of its assets in bonds at the end of 2020, is re-tendering two mandates, largely invested in USD-denominated corporate bonds from issuers in OECD countries. A further two ‘stand-by’ mandates will also be awarded, which ERAFP could activate “notably with a view to diversifying risk”, the pension fund said.
The mandates will last for six years with an optional two-year extension. The current manager for the active mandate is AXA Investment Management, while the ‘stand-in’ contracts are with Natixis, Loomis Sayles, CCR Capital and UBS.
Managers must comply with the ERAFP’s SRI requirements, and integrate ESG scores into holding analysis. ERAFP does not use sector-based exclusions, opting instead to positively screen for best-in-class