NZ Superannuation Fund Appoints First International Equity Manager
The Board of the Guardians of New Zealand Superannuation today announced that it has selected Barclays Global Investors
to manage an enhanced passive international equities mandate for the New Zealand Superannuation Fund.
This mandate will be funded gradually over the period to June 2004 when it is expected to reach approximately NZ$600
million (approximately 15% of the Fund's assets).
Under an enhanced passive mandate, the investment manager creates a portfolio of shares selected from international
equity markets with the specific aim of exceeding the return of the MSCI World Index. Barclays will be permitted to take
many small underweight or overweight positions relative to the index, with the aim of producing modest but consistent
outperformance.
Barclays Global Investors manages in excess of NZ$1,500 billion in assets around the world and more than NZ$200 billion
in the International Alpha Tilts Strategies which will include the NZ Superannuation Fund mandate.
The establishment of an enhanced passive mandate is the first step in building a diversified international share
portfolio for the Fund. Appointments of more active international equity managers, who will build portfolios with
significantly less similarity to the MSCI World Index but who will be expected to provide greater outperformance over
time, will be made later in the year.