First State Super enters global equities partnership

The $100 billion superannuation fund has awarded a $500 million multi-factor mandate to a global manager that will also provide the fund with research and development support.

HSBC Global Asset Management has been awarded the mandate and will also provide research and modelling support to First State Super's internal investment team to build out its own international shares capability.

HSBC said the terms of the partnership are unique as there is a clear separation between the mandate and R&D support despite being run in parallel.

Ross Barry, head of systematic and impact investing at First State Super said: "Having successfully developed an internal systematic investment capability in Australian shares in recent years, we are now focused on building out this platform to manage part of our international shares."

"As a result, we have selected HSBC Global Asset Management as our, global systematic investment partner, the key being their ability to offer a broader relationship-focused solution rather than simply a product solution."

HSBC Global Asset Management head of Australia Geoffrey Pidgeon said the manager is thrilled that First State Super has entrusted us with such a significant partnership.

"We believe that arrangements of this type will become a global template for future similar partnerships as asset owners such as First State Super look to build out the capability of their teams," he said.

The interaction between the two firms' investment teams should be a tremendous learning opportunity for each party, HSBC Global Management deputy chief investment officer for equities and head of systematic strategies Vis Nayar added.

"Client customisation and partnerships run at the core of our active systematic investment offering, leveraging our experienced research and portfolio management teams and proprietary resources," he said.

Read more: First State SuperHSBC Global Asset ManagementGeoffrey PidgeonRoss BarryVis Nayar
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