First State Super awards $1.6 billion mandate

By Reporter
 — 1 minute read

Neuberger Berman has been awarded a $1.6 billion emerging market equities mandate by First State Super.

First State Super has engaged Neuberger Berman to provide a systematic exposure to selected risk premia in emerging market equities.

The superannuation fund, custodian of a $71 billion asset pool, said it worked in partnership with Neuberger Berman throughout 2015 to build the emerging markets model.


First State Super portfolio manager for systematic beta, Eben van Wyk, said the Neuberger Berman model is "designed to systematically harvest non-market risk premia in emerging market equities with controlled cost".

Mr van Wyk said the portfolio may eventually be moved in-house, alongside other portfolios that First State Super manages itself.

Commenting on the mandate win, head of Neuberger Berman Australia's quantitative investment group, Wai Lee, said the emerging markets model is based primarily on research conducted by his investment team.

"We are very transparent, we publish a lot of our work as technical articles in investment journals, and we get good feedback from clients about that. We are excited to now be starting our next research project with the First State Super team," Mr Lee said.

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First State Super awards $1.6 billion mandate
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