French pension fund awards ESG and private debt mandates
French public pension fund FRR has awarded ESG mandates to three managers – Amundi, Candriam, Robeco – as well as private debt mandates to four asset management firms – BNP Paribas, Schelcher Prince Gestion, Idinvest Partners and Lyxor.
Involved in the socially and responsible investing field since 2005, the FRR has renewed index management contracts to incorporate all current ESG concerns, including portfolio decarbonisation and the new portfolio exclusions implemented by the FRR in December 2016 (tobacco and coal sectors).
“Through the contract “Equities Optimised Management Mandates with ESG approach”, launched on 10 July 2015, the FRR sought to surround itself with managers able to assist it in implementing its responsible investor strategy and to apply, to index replication, the best practices in terms of integrating ESG factors.
“The total indicative value awarded under this type of management mandate may reach €5bn. The mandates will be awarded for a period of four years renewable once for one year,” the French pension fund specified.
Commenting on the mandate win, Frederic Lejeune, CEO Robeco France, said: “We are proud of the trust placed in us by FRR in letting us manage this mandate combining two of our most strategic capabilities in France: Quantitative Investing and Integrated Sustainability. It reflects the strategy we have been implementing in the French market for the past two years, and lays the groundwork for a stronger growth path and solid long-term partnerships with French investors.”
As for the private debt mandates, the FRR launched a request for proposals to select asset managers with the aim of creating and managing dedicated funds investing in the private debt of French companies.
A first lot consists of funds granting financing to SMEs/ETIs through private placements (BNP Paribas, Schelcher Prince Gestion). The mandates are granted for 12 years with the option of a further two year. The total amount invested could reach €300m.
The same amount will be invested in the funds of the second lot specialised in acquisition-related debts and managed by Idinvest Partners and Lyxor.
The funds may grant financing to SMEs/ETIs through the acquisition of debt securities or debt securities linked to loans instruments. The main goal of this operation is to finance or refinance an acquisition, or to finance an external growth operation.
