Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, hired three active managers to run a total €2.5 billion ($2.8 billion) in a euro-denominated socially responsible investing bonds portfolio, said a spokeswoman for the pension fund.
The €21 billion ERAFP hired Amundi, La Banque Postale Asset Management and Natixis Global Asset Management to run a minimum of €400 million each. The spokeswoman did not specify the exact allocations to each manager.
The pension fund also hired Candriam and Groupama Asset Management as standby managers for the portfolio.
A search was launched in June because the contracts of incumbents Amundi and Groupama were set to expire. Funding will come from “an existing euro-denominated credit bond portfolio and/or a cash investment,” said a statement on the pension fund's website.
The active allocations will follow a “buy and hold” strategy and will invest primarily in investment-grade bonds. Managers may also invest in non-investment-grade, euro private placement-type allocations, non-rated securities and European securitization instruments, the statement said.
Contracts run for an initial five years, with the option for three successive one-year extensions.