French public pension scheme to award European equities mandates

The French public service additional pension scheme (ERAFP), managing over €23bn in assets, has launched a call for tenders to select managers of eurozone and European listed equities.

Current mandates are to expire in May 2017. The new mandates will last six years.

ERAFP’s eurozone listed equity portfolio was valued at around €5bn as of end April 2016.

The first mandate consists of the index-based management of a portfolio of eurozone mid and large cap equities.

The index, applying ERAFP’s SRI guidelines and a decarbonisation methodology, is the Scientific Beta Eurozone Max Sharpe Ratio ERAFP SRI Carbon Efficient index, calculated by ERI Scientific Beta. It seeks to deliver the best possible risk-reward ratio on a universe of eurozone developed country equities. Amounts awarded will be between €500m and €1bn.

The second mandate focuses on the fundamental, non-benchmarked and SRI management of a portfolio of eurozone mid and large cap listed equities. Between €250n and €1bn will be initially awarded.

A similar mandate will add equity risk management. Managers selected will seek to maximise the portfolio’s performance while limiting the one-year loss based on management of a risk budget measured with reference to the maximum loss over a calendar year. Initial amounts awarded will be comprised between €250m and €1bn.

The fourth lot consists of the management of a fundamental, non-benchmarked and SRI portfolio of European small cap listed equities. Some €140m will be awarded.

The fifth mandate will focus on the fundamental, non-benchmarked, SRI management of European mid and large cap listed equities. Amounts initially awarded will vary between €250m and €1bn.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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