Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, hired three managers to run a €1.25 billion ($1.5 billion) allocation to U.S. midcap and large-cap equities, a spokeswoman confirmed.
BFT Investment Managers will run a €150 million allocation to U.S. midcap equity. Management of the portfolio will be delegated to Morgan Stanley Investment Management, according to the spokeswoman.
Ostrum Asset Management and ODDO BHF Asset Management were hired to jointly manage €1.1 billion in large-cap equity. Management of the portfolios will be delegated to Loomis, Sayles & Co. and Wells Capital Management, respectively.
The spokeswoman did not say why the firms will delegate portfolio management to other firms.
The €38 billion fund will benchmark the large-cap managers' performance to the MSCI USA index. The midcap equity portfolio will be benchmarked to the Russell Midcap index.
The selected managers are required to analyze each company in their portfolio according to environmental, social and governance criteria set by the fund.
The contracts will last five years each, with the potential to extend for up to two more years.
Four additional managers were selected on a standby basis. If called upon, Schroders and Amundi will manage large-cap equities, while Sanso Investment Solutions and BlackRock will manage midcap equities. Financial management of Sanso's contract will be delegated to ClearBridge Investments should the firm be called upon.
An RFP was issued in March 2020.
The spokeswoman said that Loomis Sayles and Robeco previously managed the fund's allocation to U.S. large-cap equity, while the allocation to midcap equity is new. The spokeswoman did not comment on the reasons why Robeco wasn't reselected.