ERAFP awards three SRI management mandates for emerging market corporate bonds

Paris, 18 December 2025 – As part of the renewal of its mandates, l’Établissement de Retraite additionnelle de la Fonction publique (ERAFP) has just awarded three SRI management mandates for emerging market corporate bonds.

In July 2024, ERAFP launched a tender process to award mandates to asset management firms for the discretionary, conviction-based, and non-benchmarked management of emerging market credit bonds. Following the selection process, the Institution decided to award an "active" mandate to Aberdeen Investments and "stand-by" mandates to CPR Asset Management (following its merger with BFT IM)—with management delegated to Legal & General Investment Management—and to Myria Asset Management (with management delegated to Goldman Sachs Asset Management).

The portfolio manager’s objective will be to achieve the highest possible yield while minimizing default risk. The management process will involve selecting bonds issued by private or quasi-sovereign entities based in emerging market countries and denominated in major global currencies (USD, EUR, etc.).

The manager must construct the portfolio primarily based on a fundamental analysis of each issuer and bond, while ensuring broad diversification. The portfolio must be managed with a focus on holding securities until maturity and limiting overall turnover.

This strategy will be implemented in compliance with ERAFP’s SRI provisions and will support the Institution in fulfilling its climate commitments, notably those made within the framework of the Net-Zero Asset Owner Alliance (NZAOA).

For indicative purposes, the total amount allocated over the term of the contract for all awardees will be in the region of €500 million. As previously indicated, two of the three awarded mandates are designated as "stand-by," meaning that the ERAFP reserves the right to activate them, particularly to ensure risk diversification.

The initial duration of the contract is four years, with the option for the ERAFP to renew the contract for a period of two years.