ERAFP awards three euro-denominated SRI credit bond mandates
- 5 March 2015
Paris, 5 March 2015 – As part of the renewal of expiring mandates and in accordance with the five values laid out in its SRI charter, the French public service additional pension scheme (ERAFP) has awarded three active mandates and two stand-by mandates for the management of a eurodenominated SRI credit bond portfolio.
In June 2014 ERAFP launched a restricted call for tenders to run euro-denominated credit bond mandates.
Following the selection process, ERAFP has decided to award the active mandates to Amundi, La Banque Postale AM and Natixis AM and the stand-by mandates to Candriam and Groupama AM.
The objective of the mandates will be to develop a Buy and Hold type management style with a view to achieving a maximum return on investments while keeping default risk to a minimum. The Mandate Holders will employ a best in class type SRI management approach to meet ERAFP’s SRI-driven criteria for this asset class. The portfolio will chiefly comprise Investment Grade bonds. For diversification purposes, investment in Non-Investment Grade, EuroPP-type Private Placements, non-rated securities and European securitisation instruments will also be authorised.
Some €2.5 billion will be allocated to the three managers with a minimum of €400 million for each active mandate. No minimum figure has been set for the two stand-by mandates. The amounts will be made available to the Mandate Holders in the form of an existing euro-denominated Credit Bond portfolio and/or a cash investment.
The mandates will have an initial term of five years, which ERAFP may extend for three successive one-year periods.