ERAFP, Paris, is searching for eight money managers to run a total of at least €2.9 billion ($3.85 billion), said Alice Blais, spokeswoman for the €16 billion pension fund, in an e-mail.
The pension fund is searching for three Asia-Pacific socially responsible investing equity managers and five euro-denominated socially responsible investing fixed-income managers.
The fixed-income search is being conducted because the contracts of incumbents Amundi and Groupama Asset Management are set to expire. Both managers can rebid. The Asia-Pacific allocation is new.
Funding will come from rebalancing and new cash flows, wrote Ms. Blais.
The pension fund plans to allocate an initial €400 million total to two equity managers. The third manager will have a standby allocation. The investments will be benchmarked to the MSCI AC Asia Pacific index.
Etablissement de Retraite Additionnelle de la Fonction Publique also plans to allocate an initial €2.5 billion total to three fixed-income managers. Allocation sizes for two additional standby mandates have not been determined yet. Managers will invest primarily in investment-grade bonds and follow a “buy and hold” strategy.
The five-year contracts can be renewed, with three one-year renewal options.
The deadline for proposals is July 18. A hiring decision is expected before April 2015.
Information on the RFP can be found on the pension fund's website.
