Neuberger Berman, a US-based investment management firm, has received a $1.6bn emerging market equities mandate from Australian superannuation fund First State Super.
Under the agreement, Neuberger Berman will offer systematic exposure to selected risk premia in emerging market equities for the $71bn super fund.
Neuberger Berman Australia joint managing director Lucas Rooney said: "First State Super liked our approach to factor based equity investing, which shows low correlation to competitors.
"Research projects in areas where we have strong expertise, that go on to form part of clients' portfolios, are not uncommon for NB, as is helping clients who are building out internal capability."
First State Super portfolio manager for systematic beta Eben van Wyk said that the firm collaborated with Neuberger Berman through 2015 to build the emerging markets model, which aims to “systematically harvest non-market risk premia in emerging market equities with controlled cost”.
The portfolio is likely to be moved in-house later on along with other portfolios managed internally by First State Super, Wyk added.
Neuberger Berman director of research Wai Lee added: "We are very transparent, we publish a lot of our work as technical articles in investment journals, and we get good feedback from clients about that. We are excited to now be starting our next research project with the First State Super team."