French public service additional scheme awards US equity mandates

France
On the 05/25/21 at 12:50PM

by

Adrien Paredes-Vanheule

Erafp picked three investment managers for the management of US mid cap and large cap equity portfolios.
(Pixabay)

French public service additional scheme Établissement de Retraite additionnelle de la Fonction publique (Erafp) has awarded three US equity mandates on Tuesday. 

Erafp has granted a €150m mandate to Amundi's subsidiary BFT IM for the management of US mid cap equity portfolios. The effective management of the portfolios will be delegated to Morgan Stanley IM. Furthermore, the French public institutional investor awarded a US large cap mandate worth €1.1bn to Natixis IM's branch Ostrum AM and Oddo BHF AM. However, portfolio management will be delegated to Loomis Sayles, another Natixis IM's arm, and Wells Cap Management. 

The selected investment managers are expected to outperform the Russel Mid Cap index for the former and the MSCI USA for the other two, in line with Erafp's environmental, social and governance policy. The mandates will last for at least five years with a renewal option of one year for two consecutive years, increasing to seven years the maximum period for the mandates' management.

Erafp also selected four "stand-by" managers, namely Schroders and Amundi for the US mid cap mandate and Sanso IS (with delegation to Clearbridge) and BlackRock for the US large cap mandate.

The previous US equity mandates were awarded in 2013 to Natixis AM and Robeco Institutional Asset Management. Financial management was delegated to Loomis, Sayles & Company and Robeco Boston Partners respectively. The stand-by mandate was awarded to Morgan Stanley IM.

The French public pension scheme manages over €38bn in assets.

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