State Street Global Advisors (SSgA) has won new $310 million active global equities environmental, social and corporate governance (ESG) mandate from VicSuper.
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The mandate will invest in a portfolio of global equities that integrate ESG considerations into a proprietary dynamic alpha model.
The portfolio will particularly exclude companies involved in the manufacture of tobacco products.
The ESG factors will be integrated into the stock selection process and the mandate will also have a strong focus on risk management.
Peter Mitchell, SSgA director of business development for Australia and New Zealand, said: "SSgA is excited to be working on this new active mandate with VicSuper, with whom we have had a relationship for many years on a number of different investment strategies."
"SSgA has conducted substantial research that examines the correlation between ESG ratings and equity returns. We use this research to directly incorporate ESG into selection of equities and portfolio construction in certain investment strategies in a quantitative manner," he added.
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By GlobalDataVicSuper currently has $11.5 billion in funds under management and about 220,000 members, while SSgA has US$182.6 billion in ESG assets under management as of June 2013.
