ERAFP, Paris, is searching for three money managers to run U.S. dollar-denominated socially responsible investing corporate bond funds, said a spokeswoman for the €16 billion ($22.1 billion) pension fund.
The pension fund will select one of the three managers to run a €400 million allocation, with the other two assigned as standby managers, which can be activated by ERAPF at any time, “notably in a risk diversification perspective,” the spokeswoman said.
Funding comes from cash, she said.
Etablissement de Retraite Additionnelle de la Fonction Publique is looking for managers running a non-benchmarked allocation, which will be principally invested in U.S. dollar-denominated bonds issued by corporations in an OECD country, according to an RFP on the pension fund's website. There is an exception for bonds issued or guaranteed by a sovereign state or local authority. These allocations will be hedged against foreign exchange risk, according to the RFP.
Contracts will initially run for five years, with the potential for three one-year extensions.
According to a notice on Tenders Electronic Daily, a European procurement website, proposals are due June 2.