The French Public Service Additional Pension Scheme (ERAFP) has launched a call for tenders to award three mandates related to the currency hedging of its assets, as part of a renewal process for its existing contracts.

The pension fund is seeking to assign one active mandate and two stand-by mandates, reflecting its continued commitment to managing currency risk as a core component of its investment strategy.

The move aims to reinforce protection against exchange rate volatility across its consolidated portfolio, with a notional hedging volume of approximately €3bn.

According to ERAFP, the tender responds to three key objectives: Reducing the portfolio’s overall exposure to foreign currencies, improving the coordination of currency hedging operations, and lowering the associated costs.

The successful active market holder will be charged with managing currency risk via a passive hedging strategy, specifically for assets invested through a mutual fund structure.

The selected mandates will initially run for four years, with the option for ERAFP to extend them for up to two additional two-year periods.

The pension fund is inviting interested candidates to access the consultation documents via the official French public procurement portal here, with direct access also provided through ERAFP’s website under the tenders section.

Bids must be submitted by midday CET, 1 July 2025.

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