ERAFP launches a call for tenders to select four managers of USD-denominated SRI Credit Bonds
- 8 November 2021
Paris, 8 November 2021 – With a view to renewing existing mandates, ERAFP is launching a call for tenders to award four mandates (two active and two stand-by) to manage portfolios of USD-denominated SRI credit bonds.
The objective for the managers selected will be to develop a non-benchmarked management approach to maximise returns while minimising default risk. This strategy will comply with ERAFP’s SRI requirements and with a view to supporting the institution in implementing its climate commitments made notably as part of the Net Zero Asset Owner Alliance (NZAOA).
The portfolios will be invested mainly in USD-denominated bonds of private issuers located in an OECD country.
Each asset manager will be responsible for building a portfolio on the basis of a fundamental analysis of each issuer, incorporating ERAFP’s ESG criteria and a technical analysis of the bonds.
Overall, the indicative amount allocated to the selected managers will be approximately EUR1.2 billion. Two of the four mandates awarded will be stand-by contracts, which means that ERAFP will decide whether to activate them or not, notably with a view to diversifying risk
The mandates are awarded for an initial term of six years but ERAFP may extend them for a period of two years.