French public-sector pension scheme ERAFP has launched a restricted-tender procedure to award a mandate for its emerging market bond portfolio.
Mandates will be for five years with an option to renew them for two one-year periods.
Two of the three mandates awarded will be stand-by mandates, which ERAFP can activate for risk-spreading purposes.
ERAFP said the mandate was in keeping with its policy of broadening its investment universe and socially responsible investment procedure.
Three asset management companies selected for the mandates will run a non-benchmarked portfolios using conviction-based management.
Portfolios will be invested mainly in hard currency bonds, such as dollars and euros issued by private and/or quasi sovereign issuers.
Initial committed amounts will be around €160 million, with a target of €300 million in three years.
The scheme said the amounts could be revised upwards or downwards, depending on circumstances.
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