UniSuper appoints specialist external fund manager

UniSuper has appointed equities manager NorthStar Impact as a specialist external manager.

NorthStar focuses on investment opportunities that seek to contribute to positive social and environmental outcomes, alongside financial outcomes, by investing in listed companies in Australia and New Zealand.

Based in Sydney, the specialist fund manager was founded in 2017 and focuses on exclusively impact investing.

Core focus areas include affordable housing, education, healthcare, land and resource management, and renewable energy generation and storage.

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The portfolio will sit within UniSuper’s Sustainable Balanced and Sustainable Growth investment options.

The $120 billion fund has $12 billion invested in its various ESG-themed investment options. These are Sustainable High Growth, Sustainable Balanced, and Global Environmental Opportunities. It is also a Responsible Investment Leader as defined by the Responsible Investment Association of Australasia (RIAA).

UniSuper said the relationship “represents an exclusive institutional arrangement between NorthStar and UniSuper, with a specialist mandate and scope for potential further collaboration”.

Jarrod McDonald, manager of sustainable portfolios, said: “We are pleased to further grow our investments in companies seeking to create and grow solutions that will shape a better future.

“While UniSuper takes into account environmental, social and governance considerations into all investment decisions fund-wide, many of our members are looking for options that go even further. Our sustainable branded investment options* give them that choice, and our investment in NorthStar aligns strongly by providing exposure to innovative companies, many of which are homegrown.”

Kerry Series, founder and chief investment officer of NorthStar Impact, said: “We want everyone to have the opportunity to invest in companies that seek to deliver real-world solutions. We see this as an opportunity to drive positive change. It’s great to partner with UniSuper.”

Earlier this month, UniSuper delivered a solid 10.3 per cent return with its default Balanced option over the financial year 2022–23.

According to SuperRatings analysis, this puts the fund in fourth place in Balanced option performance, behind ESSSuper (13.3 per cent), Vision Super (11 per cent), and Brighter Super (10.6 per cent). 

John Pearce, UniSuper’s chief investment officer, said: “While it was good to see the Balanced option hit double-digit returns for the financial year, our focus is always on the longer term. 

“In that regard we are confident that current portfolio settings, with a quality bias and ample liquidity, places us in good stead to deliver on long-term objectives.”