The New Zealand Super Fund has acquired a 4.99 percent shareholding in Brussels-based Euroclear, a provider of critical financial markets infrastructure.
With approximately €36 trillion of assets under custody and over €1 quadrillion per annum worth of securities transactions, Euroclear provides post-trade services including transaction settlement, asset servicing and collateral management.
The Euroclear group includes Euroclear Bank, the International Central Securities Depositories, and operates the national Central Securities Depositories in Belgium, Finland, France, Ireland, the Netherlands, Sweden and the United Kingdom. Through its acquisitions of MFEX (now MFEXbyEuroclear) in 2021 and Goji in 2022, Euroclear reinforced its capabilities in the global funds market.
Euroclear Bank is the premier provider of settlement and related securities services for cross-border transactions involving domestic and international bonds, equities, derivatives and investment funds.
NZ Super Fund Head of Direct Investments Will Goodwin said the transaction, which makes the NZ Super Fund Euroclear’s fifth-largest shareholder, provided a rare opportunity for the NZ Super Fund to increase its exposure to the global financial services sector.
“Euroclear is the leading settlement provider across a number of European and international markets. It is an attractive, high-performing asset which suits our growth profile and will help diversify our investment portfolio,” Mr Goodwin said.
“As a sovereign wealth fund with a long-term investment horizon, the NZ Super Fund is a welcome addition to our shareholder community,” said Francesco Vanni d’Archirafi, Chairman of Euroclear.
“NZ Super Fund will provide the type of stable and patient capital ideally suited to our growth strategy, which is focused on enhancing the value provided to investors, issuers, broker dealers, shareholders and communities through our core product and service offering, while upgrading our capabilities in ESG, data, digital and, as we continue to expand, our geographic reach,” added Lieve Mostrey, CEO of Euroclear.