Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, selected AXA Investment Managers and FundLogic, a Morgan Stanley Investment Management alternatives business, to jointly manage a €1.2 billion ($1.3 billion) allocation to U.S. dollar-denominated socially responsible credit, according to its website.
AXA was previously the sole manager for the allocation.
Two additional managers, Amundi and BlackRock, were selected by the pension fund on a standby basis. The contracts with Amundi and BlackRock can be activated if the pension funds executives choose to spread risk.
The managers will invest in investment-grade and high-yield corporate bonds issued by companies located in Organization for Economic Cooperation and Development countries.
The selected managers are required to support ERAFP in its commitments to the Net Zero Asset Owner Alliance and comply with ERAFP's socially responsible policy.
The €41.9 billion pension fund's allocation to U.S. socially responsible credit was previously managed by AXA Investment Managers, with Natixis Investment Managers' Loomis Sayles & Co. and CCR Asset Management as standby managers.
The mandates awarded are for an initial term of six years and could be renewed for a further two years each.
An RFP was published in November 2021. A spokeswoman could not be reached to provide additional details.