Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, is searching for four mangers to manage a total allocation of €1.2 billion ($1.4 billion) to U.S. dollar-denominated investment-grade and high-yield bonds, a spokeswoman said.
Two of the four managers will be selected by the €37.5 billion pension fund on a stand-by basis.
The bonds will be issued by companies in the Organization for Economic Cooperation and Development countries and will have a socially responsible investing focus.
The selected bond managers could allocate up to a third of the portfolio to high-yield bonds with a minimum credit rating of B-. The managers will be required to invest in alignment with ERAFP's SRI requirements and its climate commitments made as part of being a member of the Net-Zero Asset Owner Alliance.
All current managers can rebid when their contracts expire in November 2022.
The pension fund's allocation is currently managed by AXA Investment Managers. Natixis Investment Managers' Loomis Sayles & Co. and CCR Asset Management, which is owned by UBS, are the stand-by managers.
The contracts will initially be awarded for six years and could be extended for two additional years each.
The RFP is available on ERAFP's procurement portal. Proposals are due by noon Central European Time on Dec. 10.