France’s ERAFP makes €1bn smart beta allocation

ERAFP, a €23.5 billion pension scheme for French civil servants that invests heavily in socially responsible investment (SRI) mandates, is to invest between €500 million and €1 billion in a smart beta, low carbon strategy.

The investment will be split between asset managers and invested for a six-year term, according to ERI Scientific Beta, a branch of the Edhec-Risk Institute in France which has constructed the index for ERAFP.

The investment will be in Eurozone mid- and large-cap listed equities and benchmarked to the Scientific Beta Eurozone Max Sharpe Ratio ERAFP SRI Carbon Efficient index.

Noël Amenc, chief executive of ERI Scientific Beta, said the mandate represented a “major vote of confidence” in the index provider.

ERI launched a new series of low carbon indices earlier this year. The ERAFP index excludes the “worst firms in terms of carbon intensity in each sector of activity”.

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