NZ Super hires world's biggest manager

The New Zealand Superannuation Fund has appointed the world's biggest investment manager to look after four of its new passive share portfolios.

New York-based BlackRock has won contracts to manage global large cap equity, small cap equity, emerging markets equity and Real Estate Investment Trust mandates from the end of June.

BlackRock has managed the fixed income mandate for the fund since 2010.

The super fund's general manager: portfolio completion, Mark Fennell, said the four new mandates would give it cost-effective, diversified exposure to equity markets around the world.

Passive investment involves buying companies to mirror a specific stock exchange, index, or sector, and is usually much cheaper than active stock-picking.

The super fund was set up by the Labour government in 2003 to help fund the expanding cost of future pension payments.

Government payments to the fund, which is now worth $23 billion, have been suspended indefinitely.

The Dominion Post