Northern Trust has been awarded two investment mandates from the New Zealand Superannuation Fund, worth NZ$600 million in total.
The two mandates, each worth NZ$300 million, will utilise Northern Trust funds already passively invested for NZ Super, continuing a relationship that started in 2007.
The mandates will be managed using a factor investing approach, which “systematically constructs an alternative portfolio according to pre-determined factors, aiming to deliver superior risk-adjusted returns over the long-term”, Northern Trust said.
Northern Trust's head of asset management for Australia and New Zealand, Bert Rebelo, said this approach “can result in greater returns and outperformance” when properly selected.
“We continue to see an increasing interest in factor investing strategies as asset owners look to exploit investment opportunities most efficiently in a low-return environment,” he said.
NZ Super chief investment officer Matt Whineray said the two mandates, one using a low-volatility strategy and one employing a value-investing strategy, were “well suited” to the fund’s beliefs as a long-term investor.
“We have worked closely with Northern Trust Asset Management over a number of years, and are delighted to continue to deepen our partnership with them through these mandates,” Mr Whineray said.
The sovereign wealth fund has equity holdings valued at $157.9 million across several companies with alleged business links to the Myanmar m...