Global fund manager Robeco has won an enhanced indexing strategy mandate from a $1.5 billion superannuation fund.
Christian Super selected Robeco to manage a $100 million mandate that focuses on an enhanced indexing equities strategy.
The strategy is an alternative to passive investing for investors looking for stable outperformance after costs with a low tracking error, while factoring in sustainability, Robeco said.
This newly awarded mandate is part of re-structuring Christian Super's equity portfolios currently underway to reflect a more cohesive ethical and fundamental approach to create long-term value for members, the super fund said.
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Integrating ESG factors, which Robeco has expertise and experience in, was an important factor in receiving the mandate, the fund manager said. About $160 billion globally is managed using ESG criteria.
Christian Super chief executive Ross Piper said: "Christian Super is delighted to be partnering with Robeco as we continue to deepen the integration of ESG factors across our investment portfolio."
"Our organisations share a deep commitment to responsible investment, and a long track record of integrating sustainability factors into the way we invest."
Head of Robeco Australia Stephen Dennis said the strategy is a great solution for superannuation funds that want to integrate tailored sustainability preferences while enhancing market returns.
"We are delighted to offer this strategy to Australian superannuation funds looking for sustainable investment solutions and are looking forward to working with Christian Super to achieve their sustainable investment goals," Dennis said.
Headquartered in Rotterdam, the Netherlands, Robeco manages about $263 billion in assets.