Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, is searching for two convertible bond managers to run a combined €210 million ($276 million), confirmed Enora Budet, spokeswoman for the €11.4 billion fund.
A global convertible bond manager will run €130 million, while a European convertible bond manager will run €80 million.
Funding comes from cash.
This is ERAFP’s first allocation to convertible bonds, which “combine the best of the two worlds: an equity-like profile in up markets and a portfolio protection thanks to the bond floor in down markets,” Ms. Budet wrote in an e-mail.
Proposals are due March 12, and documents can be downloaded from the French public procurement platform website. Selections are expected in the second half of this year.