The mandate will invest in a portfolio of global equities that integrate ESG considerations, and will specifically exclude tobacco.
According to a statement by SSgA, the mandate will also have a strong focus on risk management.
SSgA director of business development for Australia and New Zealand Peter Mitchell said State Street has had a relationship with VicSuper “for many years on a number of different investment strategies”.
“This program is unique in that ESG principles will be integrated into the stock selection process rather than having an overlay, where individual stocks are simply excluded based on their ESG credentials,” he added.
“SSgA has conducted substantial research that examines the correlation between ESG ratings and equity returns.
“We use this research to directly incorporate ESG into the selection of equities and portfolio construction in certain investment strategies in a quantitative manner,” he said.
