ERAFP selects three managers for €2.5bn of credit mandates

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France’s public service supplementary pension scheme ERAFP has appointed three local managers to credit mandates worth €2.5bn.

The €21bn fund said each of the three selected managers – Amundi, La Banque Postale Asset Management and Natixis Asset Management – would be granted at least €400m in assets but did not disclose the complete size of each euro-denominated mandate.

The tendering process, which got underway in June last year alongside a tender for three Asia-Pacific equity managers, has also seen two additional firms selected as part of a framework agreement, allowing ERAFP to call on the services of Candriam and Groupama Asset Management without the need for an additional tender.

The managers have been asked to implement a buy-and-hold strategy, following ERAFP’s wishes for a ‘best in class’ screening approach to investments in line with its socially responsible investment (SRI) charter.

In addition to investment-grade bonds, the managers will also be allowed to invest in non-investment-grade European private placements and other European securitisation products, potentially allowing ERAFP to participate in the securitisation market should the European Commission succeed in its attempts to kick-start growth.

The fund recently overhauled its SRI charter, placing a greater emphasis on companies being fully transparent about their financial arrangements and tax affairs, and setting itself a goal of discussing shareholder resolutions for 60 of its listed holdings. 

Read ERAFP chief executive Philippe Defossés’ thoughts on dealing with manager underperformance

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