Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, selected three asset managers to run euro-dominated credit mandates worth €8 billion ($8.5 billion), and put two other managers on standby, according to an announcement Oct. 16.
The public service pension fund with nearly €41billion in assets invests solely in socially responsible vehicles.
Active mandates were awarded to Amundi Asset Management, Ostrum Asset Management and HSBC Global Asset Management.
With the two stand-by mandates to Candriam and Groupama Asset Management, ERAFP reserves the right to activate them "in particular for the sake of risk dispersion," the announcement said.
The contracts are initially for six years, with the possibility of renewal for two more years. The objective is to manage euro-denominated credit bonds "to maximize returns by minimizing the risk of default," the announcement said. Investments in noninvestment-grade bonds, private debt funds or European securitization securities are also permitted.