Fonds de Reserve pour les Retraites, Paris, is looking for managers to run up to €4 billion ($4.8 billion) in passive equities strategies aligned with the Paris Agreement.
The fund wants up to four managers to replicate equity indexes and run assets with a responsible approach, a notice on FRR's website said. Managers will minimize relative risk and preserve the characteristics of the indexes used, while investing in a way that meets the requirements of the Paris Agreement — limiting the rise in global temperature to well below 2 degrees Celsius.
Managers are expected to integrate a gradual reduction of the portfolio's carbon footprint; an overweighting of "green" investments; the measurement of physical and transition risks; a higher environmental, social and governance rating than the benchmark; and FRR's exclusion policy.
Each manager will also be expected to initiate dialogue with companies as necessary.
Contracts will last for four years, with a possible one-year extension.
Proposals are due by April 9. Further information is available on FRR's dedicated procurement platform.
The search extends FRR's 2015 appointment of three managers to run an optimized equities allocation with an ESG approach. The managers are Amundi, Candriam and Robeco, a spokeswoman said. She did not say whether they may rebid.
FRR had €33.7 billion in assets as of Dec. 31, 2019, the most recent data available.