New Zealand Superannuation Fund hired UBS Asset Management to manage NZ$4.9 billion ($3.5 billion) in ESG-focused passive equity funds, a spokesman for the NZ$60 billion Auckland-based sovereign wealth fund confirmed.
A UBS news release said the firm "has implemented two bespoke ESG index equity funds tailored to NZ Super Fund's performance and responsible investment requirements."
The NZ Super Fund spokesman didn't immediately respond to queries regarding the funding source for the new mandates.
The annual report for NZ Super's fiscal year ended June 30, released in October, showed the fund awarding UBS a segregated mandate of NZ$2.38 billion for passive global equities during the period.
UBS joined Northern Trust, with roughly NZ$8 billion, or 13.6% of the fund's portfolio as of June 30, and State Street Global Advisors, with NZ$8.34 billion, or 14.1% of the portfolio, as leading passive managers for the fund.