Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, is searching for money managers to run eurozone and European equity allocations totaling up to €5 billion ($5.7 billion.)
Existing contracts are due to expire in May 2017, said pension fund documents. All allocations must be run with a socially responsible investment approach, said the €23 billion pension fund. The allocation is split into five separate searches:
- €500 million to €1 billion total for a eurozone mid- and large-cap listed equities portfolio. The benchmark is the Scientific Beta Eurozone Max Sharpe Ratio ERAFP SRI Carbon Efficient index. ERAFP will select three money managers, including two standby managers. These managers may be activated at any time.
- €250 million to €1 billion total allocation to active fundamental, eurozone mid- and large-cap listed equities. Five money managers will be selected, including two standby managers.
- €250 million to €1 billion total allocation to fundamental eurozone mid- and large-cap listed equities with equity risk management. The equity risk management will be carried out using forward financial instruments, the documents said. ERAFP will select three managers, including two standby firms.
- €140 million total for active fundamental, European small-cap listed equities, to be run by one manager, with two standby managers.
- €250 million to €1 billion total for active fundamental European mid- and large-cap listed equities, to be run by one manager, with two standby managers.
All allocations must comply with the pension fund's SRI guidelines, and money managers will have to analyze each portfolio in line with these guidelines either in-house or via external providers.
Each contract will run for six years. Details of existing managers could not be learned by press time. A spokeswoman was not available to comment by press time.
Further details are available on achatpublic, a public tender website. Further details about when proposals are due or when a hiring decision is expected were not available by press time.
