Northern Trust and New Zealand Super Fund Extend Relationship: Passive Fixed Income Mandate incorporating ESG exclusions adds to existing partnership
POSTED ON: 14 July 2015
AUCKLAND and MELBOURNE – The Guardians of New Zealand Superannuation (the Guardians), the manager of the NZ$29 billion New Zealand Superannuation Fund (the Fund) has appointed Northern Trust’s (Nasdaq: NTRS) international asset management arm, a leading provider of index, active and multi-manager solutions, to manage a Barclays Global Aggregate fixed income mandate, incorporating the Fund’s environmental, social and governance (ESG) exclusions.
The new mandate adds to the four passive global equity mandates awarded by the Guardians to Northern Trust in 2013.
“We are pleased to grow our existing partnership with Northern Trust. The appointment is consistent with our desire to have fewer, deeper manager relationships, helping us manage the Fund’s portfolio as efficiently as possible,” said Matt Whineray, chief investment officer, New Zealand Superannuation Fund.
Said Wayne Bowers, chief investment officer for Northern Trust Asset Management for Europe, Middle East, Africa and Asia Pacific: “We are delighted to have the opportunity to further our relationship with New Zealand Superannuation Fund and look forward to helping them obtain efficient market exposure to their designated index, whilst supporting their goals for socially responsible investing.”
The appointment follows Northern Trust’s recent announcement that it had established an asset management sales and relationship management presence in Melbourne, Australia, in line with its strategy to service its clients as close to their home market as possible. Bert Rebelo, head of asset management institutional business for Australia and New Zealand, said: “With a strong ethos of client service, Northern Trust continues to evolve and listen to client needs, offering solutions that best meet their unique investment requirements wherever they are in the world.”
Northern Trust has also had a custodial relationship with the Guardians and the Fund since 2007. It is common for Northern Trust to have both asset management and custodial relationships with its global clients, appropriate separation is maintained between the asset management and asset servicing businesses.
Whilst the mandate does not have a specific size, the Guardians require that none of their external managers manage more than 25% of the Fund’s net asset value.
About NZ Super Fund
The New Zealand Superannuation Fund is a sovereign wealth fund established by the New Zealand Government to partially pre-fund the future cost of universal pension payments. A long-term, growth-oriented investor, the Fund has returned 10.3% p.a. since inception in 2003. The Fund is managed by the Guardians of New Zealand Superannuation, a Crown entity. The NZ Super Fund has holdings in more than 6,000 listed companies globally. Funds under management were $29.6 billion as at 31 May 2015.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 20 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2015, Northern Trust had assets under custody of US$6.1 trillion, and assets under management of US$960.1 billion. For 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit www.northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust’s international Asset Management business (Northern Trust Global Investments Limited) is a leader in index management, offering a comprehensive set of equity and fixed income strategies that are available through commingled funds as well as segregated accounts. With an increasing client base in diverse socially-screened strategies, Northern Trust offers a breadth of capabilities to build a complete portfolio solution incorporating ESG factors.
Asset Management at Northern Trust comprises Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc. and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at http://www.northerntrust.com/disclosures.
NZ Super Fund – Catherine Etheredge, Head of Communications, [email protected], 0274 777 501
Kreab Gavin Anderson, on behalf of Northern Trust – Lucy Chamberlain, [email protected], +61 (3) 96593012