The French public additional pension scheme (ERAFP) has launched a call for tender to select four managers of USD-denominated SRI credit bonds for €1.2bn investment.
The tenders will include two active and two stand-by mandates. The objective for the managers selected will be to develop a non-benchmarked management approach to maximise returns while minimising default risk.
This strategy will comply with ERAFP’s social responsible investing (SRI) requirements and with a view to supporting the institution in implementing its climate commitments made notably as part of the Net Zero Asset Owner Alliance (NZAOA).
The portfolios will be invested mainly in USD-denominated bonds of private issuers located in an OECD country. Each asset manager will be responsible for building a portfolio on the basis of a fundamental analysis of each issuer, incorporating ERAFP’s environmental, social and governance (ESG) criteria and a technical analysis of the bonds.
Two of the four mandates awarded will be stand-by contracts, which means that ERAFP will decide whether to activate them or not, notably with a view to diversifying risk. The mandates are awarded for an initial term of six years but ERAFP may extend them for a period of two years.
Latest News
-
Swedish pensioners’ income amounts to 82% of working-age income
-
Romania pillar II pension funds return 5.88% in 2021
-
UK's HMRC repays over £42m in overpaid pensions tax in Q4 2021
-
TPR urges trustees to prepare for ‘stronger nudge’ regulations
-
Danica Pension reports strong returns for 2021
-
Danish pension IT provider opens Dutch branch
Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.
In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.
In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.
Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?
In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.
In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows
Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories