Meet our investment managers: Part two – State Street Global Advisors

When you invest in KiwiSaver or a managed fund, your money gets invested into different asset classes (like shares and bonds) depending on your fund choice. These assets can be found locally in New Zealand, or they could be sourced internationally. BNZ Investment Services Limited (BNZISL), the manager of the investment products available through BNZ,  partners with specialist investment managers to help you get the most out of your money. In the second instalment of this series ‘Meet our investment managers’, we’re going to put the spotlight on State Street Global Advisors.

Global managers for international asset classes

There’s something to be said for investing in your own backyard, but there are also thousands of great companies all over the world that can enhance diversification for your investments.

For the international asset classes, BNZISL uses a number of global investment managers, who each bring their own expertise. This helps ensure investors can benefit from experts based offshore in global financial market hubs.

Who is State Street Global Advisors?

State Street Global Advisors (SSGA) is the asset management arm of State Street Corporation and has worked alongside BNZISL since July 2021.

SSGA has served governments, institutions, and financial advisors for over four decades. They have a rigorous, risk-aware approach built on research, analysis and market-tested experience, and are one of the pioneers in index investing – launching their first fund in 1978. Today, they track more than 800 indexes from leading providers, as well as many custom indexes. With 28 offices around the globe, there are over 150 investment professionals dedicated to indexing strategies.

International equities and international fixed interest

SSGA is involved in the management of two different asset classes on behalf of BNZISL: international equities and international fixed interest. While BNZISL investment products utilise both passive and active strategies, SSGA oversees passive investments for both these asset classes. Passive investment is a ‘buy and hold’ strategy that aims to track an index – for example the FTSE All World Index – providing broad market exposure at a lower cost.

The collaboration with SSGA is coordinated through their Australian office*, where a dedicated team of highly skilled index equity portfolio managers oversee the international equities asset class. International equities assets include shares in global companies across a range of sectors within the FTSE Index, such as tech, healthcare, and communications. Similarly, international fixed interest assets, which include bonds, cash, and currencies, are managed by a specialised team. The SSGA team also handles currency hedging, helping to ensure that investments are well-protected against currency fluctuations.

Managing exclusions across the portfolios

An important part of the role SSGA play is to ensure that no companies they invest in on BNZISL’s behalf fall under the exclusion list, which is determined by the BNZISL Responsible Investment Policy. The exclusion list is managed by BNZISL and supplied to all relevant investment managers as part of the investment process. The list is refreshed quarterly to ensure that it stays up to date as companies change and new companies appear.  There is also a daily exclusion check completed at the custodian level (a custodian is the intermediary that holds the assets, such as shares and bonds, on behalf of investors).

Global investment experts

SSGA prides itself on being a global leader in investment management. With experts around the world, they are committed to delivering innovative solutions and high-quality insights. As the investment landscape evolves, they continually adapt, striving to meet investor needs with the highest standards of responsibility and expertise.

*State Street Global Advisors, Australia, Limited is the investment manager.

BNZ Investment Services Limited, a wholly owned subsidiary of Harbour Asset Management Limited, is the Issuer and Manager of the BNZ KiwiSaver Scheme, YouWealth, and Private Wealth Series. Download a copy of the Product Disclosure Statements:

• BNZ KiwiSaver Scheme Product Disclosure Statement (PDF 1.1MB)
• YouWealth Product Disclosure Statement (PDF 1.4MB)
• Private Wealth Series Product Disclosure Statement(PDF 517KB)

Investments in the BNZ KiwiSaver Scheme, YouWealth and Private Wealth Series are not bank deposits or other liabilities of Bank of New Zealand (BNZ) or any other member of the National Australia Bank Limited group. They are subject to investment risk, including possible delays in repayment. You could get back less than the total contributed. No person (including the New Zealand Government) guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme, YouWealth or Private Wealth Series, or the repayment of amounts contributed. National Australia Bank Limited, the ultimate owner of BNZ, is not a registered bank in New Zealand but a licensed bank in Australia and is not authorised to offer the products and services mentioned on this webpage to customers in New Zealand.

BNZ Investment Services Limited (BNZISL) uses the BNZ brand under licence from Bank of New Zealand, whose ultimate parent company is National Australia Bank Limited. No member of the FirstCape group (including BNZISL) is a member of the NAB group of companies (NAB Group). No member of the NAB Group (including Bank of New Zealand) guarantees, or supports, the performance of any member of FirstCape group’s obligations to any party.

This article is solely for information purposes. It’s not financial or other professional advice. For help, please contact BNZ or your professional adviser.

No party, including BNZ, is liable for direct or indirect loss or damage resulting from the content of this email. Any opinions in this email are not necessarily shared by BNZ or anyone else