New Zealand Super Fund appoints Northern Trust to manage four new passive global equities mandates

15 October 2013   Category: News, Global, New Zealand   By Asia Asset Management

The NZ$23 billion (US$19.26 billion) New Zealand Superannuation Fund has appointed Northern Trust’s asset management arm to manage four new passive global equities mandates.
The mandates track global large cap, global small cap, developed emerging markets and developed REITs (real estate investment trust) market indices.
Fiona Mackenzie, head of investments for the New Zealand Superannuation Fund, said around two-thirds of the fund was invested passively, providing cost-effective access to diversified global share-markets.
“Adding a third passive equity manager to our stable will give the fund more capacity and flexibility in managing this very important part of our portfolio.”
Northern Trust has had a custodial relationship with the fund since 2007. Ms. Mackenzie said appropriate separation was in place between Northern Trust’s asset management and asset servicing businesses. Northern Trust has both asset management and custodial relationships with the majority of its global clients.
“We are delighted to be broadening our relationship with New Zealand Superannuation Fund,” said Bo Kratz, managing director for Northern Trust’s asset management arm in Asia Pacific. “Northern Trust has always placed a key emphasis on understanding our clients’ unique requirements and we are pleased to now extend our asset management capabilities to the fund and help them achieve their investment objectives.”
“New Zealand Superannuation Fund is one of the world’s most innovative sovereign wealth funds and we look forward to working closely with them,” said Bert Rebelo, head of business and strategy for Northern Trust’s asset management arm for Australasia.
The mandates are flexible in size.