The mandates, the amounts for which weren’t disclosed, will track the indices or global large cap, global small cap, developed emerging markets and developed real estate investment trusts.

The passive investments provide a cost-effective method of accessing diversified global share markets, according to Fiona Mackenzie, New Zealand Superannuation Fund head of investment.

“Adding a third passive equity manager to our stable will give the fund more capacity and flexibility in managing this very important part of our portfolio,” said Ms Mackenzie.

Bo Kratz, managing director of Northern Trust’s asset management arm in the Asia Pacific, said they were delighted to be broadening their relationship with New Zealand Superannuation Fund.

“Northern Trust has always placed a key emphasis on understanding our clients’ unique requirements and we are pleased to now extend our asset management capabilities to the Fund and help them achieve their investment objectives,” said Mr Kratz.

Bert Rebelo, head of business and strategy for Northern Trust’s asset management arm for Australasia, also held this view, commenting “New Zealand Superannuation Fund is one of the world’s most innovative sovereign wealth funds and we look forward to working closely with them”.

Northern Trust has held a custodial relationship with the fund from 2007. Mr Mackenzie said there was an appropriate separation in place between Northern Trust’s asset management and asset servicing business.