NZ Super Fund and Northern Trust extend relationship - two factor investing mandates awarded
POSTED ON: 22 August 2016
AUCKLAND and MELBOURNE, 22 August 2016 –The Guardians of New Zealand Superannuation, the manager of the NZ$30 billion New Zealand Superannuation Fund, has appointed Northern Trust Asset Management to manage two new factor investing mandates, extending a relationship first established in 2007.
The mandates – a NZ$300 million low volatility strategy and NZ$300 million value investing strategy – will use funds Northern Trust is already investing passively in global equities on behalf of NZ Super. The new mandates will be managed according to 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.
“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,” said Matt Whineray, chief investment officer, NZ Super Fund. “Value and low-volatility factor strategies are well suited to our beliefs and advantages as a long-term investor.”
“We are delighted to support NZ Super Fund with our expertise in factor-based strategies,” said Bert Rebelo, head of Northern Trust Asset Management in Australia and New Zealand. “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. When appropriately selected, adopting factor tilts can result in greater returns and outperformance.”
Northern Trust Asset Management offers clients a factor based investing approach which can be designed to tilt according to a range of criteria – such as value, size, quality, momentum and low volatility or high yield. Northern Trust’s proprietary research shows that style factor exposures can outperform traditional benchmarks with lower levels of risk.
Northern Trust first opened an office in Australia in 2007 to support its institutional investor clients across Australia and New Zealand. Since 2015 it has offered asset management solutions directly from its Melbourne office and in 2016, following its acquisition of Aviate Global, established an office in Sydney.
Northern Trust Asset Management serves institutional and individual investors in 29 countries. Internationally, Northern Trust Asset Management’s investment capabilities span all markets and asset classes, from passive and factor based to fundamental active and multi-active manager strategies, delivered in multiple vehicles. For more information, please visit our website or follow us on Twitter @NTInvest.
Internationally, Northern Trust Asset Management is composed of Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K. and investment personnel of The Northern Trust Company of Hong Kong Limited.
New Zealand Superannuation Fund Contact: Catherine Etheredge + 64 (0) 274 777 501, [email protected]
Northern Trust: Europe, Middle East, Africa & Asia-Pacific Contact: Lara Schnappinger, +44 (0) 207 982 2177, [email protected]