Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, issued RFIs for two managers to run active international developed markets equities and one firm to handle a euro-denominated credit bonds portfolio, spokesman Ted Marx confirmed. The international equity managers will initially run a total of about €150 million ($234 million), with about the same amount added annually, while the investment-grade credit bonds strategy will initially have about €250 million, also with the same amount of assets added annually. The €4.7 billion fund will require that managers meet set guidelines on socially responsible investment. A standby manager also will be named for each strategy. Funding will come from new asset inflows, Mr. Marx added. Proposals are due June 27; further information can be obtained from the funds French-language website at http://www.erafp.fr.
We are currently considering the necessity of widening our investment universe to diversify the funds portfolio, Isabelle Szendy, ERAFP deputy CEO, said in a news release. As of the year-end 2007, 14% of assets were invested in externally managed equities. The fund internally manages sovereign bonds, which accounted for 78% of the entire portfolio. The remainder was invested in local authority and other bonds, which are also managed in-house.