€1 billion equity mandate for scientific beta low carbon index

A large pension fund for French civil servants, ERAFP, is to benchmark a Eurozone mid- to large-cap equity mandate worth up to €1 billion to a new low carbon, scientific beta index.

The index is from ERI Scientific Beta, a smart beta index provider set up by the EDHEC Risk Institute in 2012. The EDHEC Risk Institute has been researching the combination of financial and environmental performance for several years and this work has resulted in the creation of a series of low carbon indices by ERI Scientific Research. The mandate is for six years and has to follow the SRI principles that ERAFP applies to all its allocations.

ERI Scientific beta CEO, Noel Amenc, said: “We are gratified that ERAFP has seen fit to award such a significant mandate so soon on the basis of ERI Scientific Beta’s low carbon indices. The low carbon indices offer access to short- and medium-term outperformance by using consensual results from financial research in the area of smart beta and portfolio diversification.”