French pension giant Établissement de retraite additionnelle de la fonction publique (ERAFP), has launched a call for asset manager to run €1bn of multi-asset fund of funds mandates.
The €33bn additional pension fund for civil servants is asking for applications for two active and two stand-by contracts, which will replace existing contracts awarded in 2013, which will expire next March. The mandates are for an initial term of four years with the possibility of renewal of contracts for two successive one-year periods, giving a maximum possible term of six years.
ERAFP is a 100% ‘SRI’ investor, so ESG will be a factor in the tender. It said managers must adopt a fundamental, non-benchmarked approach to build a portfolio based on a rigorous asset allocation and fund selection process in compliance with ERAFP's SRI framework.
With over 4.5m beneficiaries, ERAFP is one of the world’s largest public pension funds in terms of member numbers. It has nearly €1.8bn in annual contributions, making it one of the world’s fastest growing institutional asset pots.