ERAFP, the French pension fund for civil servants, has tendered diversified fund of funds mandates ahead of current contracts expiring in March next year.
The €34.9bn fund has four mandates to award for a total indicative amount of €1bn; two mandates are active, two are ‘stand-by’.
Mandate holders will be expected to maximise performance while continuously seeking to deliver the best possible risk-return ratio by implementing a diversified, flexible, tactical, dynamic and opportunistic asset allocation.
ERAFP is looking for managers to adopt a fundamental approach, without being tied to a benchmark, and to build a portfolio that must also respect the pension fund’s socially responsible investment framework.
ERAFP said it would need to be able to assess the robustness of the processes used to integrate ESG factors put in place by the firms managing the underlying funds.
The mandates are for four years and can be renewed for two successive one-year periods, for a maximum duration of six years.
As at the end of December 2019 ERAFP had a 3% multi-asset allocation, up 0.3 percentage points from the year before. The pension fund created the multi-asset mandate in 2013, and it has been managed by Amundi. The risk budget for the multi-asset fund has been set at 25% for the past two years.
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