Russell Investment Group has won two large corporate outsourcing arrangements as yet more corporate super funds finish up their ‘last drinks’.
Harwood Superannuation Fund, the fund for CSR Ltd and Rinker Group Ltd, and Nestle Australia Group Superannuation Fund have appointed Russell to manage $1.2 billion and $560 million respectively, in one of the largest consulting mandates ever awarded in Australia. They join BHP, One Steel, BlueScope, ANZ, IBM, Holden, and News Limited as the latest corporate funds to outsource their investments to Russell. “Russell has now been the chosen service provider for nine out of 10 of Australia’s largest investment outsourcing mandates in the past seven years,” Stephen Roberts, Russell’s managing director of institutional investment services, said. “Russell’s global leadership in multi-manager investing, as well as its breadth and depth of relationships with Australian companies, has helped cement each new partnership.” Harwood’s assets will be allocated in Russell’s investment products across Australian equities, international equities, property, Australian fixed interest, global fixed interest, hedge fund of funds and cash. Nestle already outsources its member administration, consulting and actuarial services to Russell, and the addition of assets signifies a “total outsourcing”. Roberts said there would be changes to the fund over the next few months as asset allocations were reviewed and the implementation commences.
The total portfolio approach has already been implemented by some of the biggest asset owners around the world. But with the advent of a more volatile market and macro backdrop more funds might start putting it to work.
Lachlan MaddockApril 18, 2025
