First State Super awards $1.6b mandate to Neuberger Berman
First State Super has awarded a $1.6 billion mandate to an independent investment firm, who is based in New York, to manage its emerging market equity customised factor portfolio.
First State Super awarded Neuberger Berman the mandate to provide systematic exposure to selected risk premia in emerging market equities.
Systematic beta portfolio manager, Eben van Wyk, said they worked in partnership with Neuberger Berman in 2015 to build this model, to systematically harvest non-market risk premia in emerging market equities, with controlled risk.
"We may eventually move this portfolio in-house alongside other strategies managed internally," he said.
First State Super acted as the custodian to over $71 billion in assets, which included $50 billion in superannuation and $21 billion in retirement savings, the fund said.
Neuberger Berman Australia joi
nt managing director, Lucas Rooney, said: "First State Super liked our approach to factor based equity investing, which shows low correlation to competitors".
Neuberger Berman's head of quantitate investment group and director of research, Wai Lee, said his team's innovation, research and investment work made its way into many clients portfolios, through many different paths.
"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," Lee said.
Recommended for you
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
