Pension fund for French civil servants awards bond mandates
FRANCE – The French pension fund for civil servants (ERAFP) has awarded two active mandates and entered into four investment management framework agreements as part of its broader ESG charter.
Following the tendering process, which took place in February, ERAFP awarded a European convertible bond mandate with non-benchmarked SRI management to French boutique Schelcher Prince Gestion.
It also entered into framework agreements with Acropole AM and Natixis Asset Management for this mandate as well.
ERAFP awarded the international convertible bond mandate to Lombard Odier Gestion, while entering into framework agreements with BNP Paribas Asset Management and Fisch Asset Management.
The pension fund stressed that, for the two lots awarded, the investment firms would have to comply with ERAFP's ESG requirements.
"The investment firm will therefore need to analyse each convertible bond held in the portfolio and in the index comprising the investment universe to ensure application of the best-in-class principle having regard to ERAFP's ESG requirements, using its own resources or by calling on external resources," it said.
ERAFP launched a restricted call for tenders in February. At the time, it said the amounts to be invested over the first three years would be approximately €80m for the European mandate and €130m for the global mandate.
The initial term of the contracts will be four years, although ERAFP will be able to extend this by two successive periods of two years each.