ERAFP searching for SRI credit managers, hires Millennium to hedge FX risk

Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, is searching for socially responsible investing credit managers to run a non-benchmark discretionary allocation to emerging markets.

The search, filed on French procurement website Achat Public, said the pension fund is looking for providers to "obtain the best possible return while minimizing the risk of default."

The size of the allocation and further details were not available. Proposals are due May 24. Further details are available on the Achat Public website.

Separately, ERAFP hired Millennium Global Investments to actively hedge its foreign-exchange risk.

A notice on the €30 billion ($37 billion) pension fund's website said BNP Paribas Asset Management and Russell Investments were also hired as standby managers.

"In keeping with its fiduciary duty, ERAFP's objective was to select three service providers to ensure overall management of hedging of foreign-exchange risk of its assets," said the notice.

The notional amount for hedging is set to be around €2 billion. The strategy will include both a passive and dynamic component of FX risk hedging, said ERAFP.

The pension fund launched a search in December.

Contracts run for four years with two further options to extend, each for two-year periods.

Spokeswoman for the pension fund could not be reached for comment.