Master trust marketers have had a busy Christmas, scrambling to respond to a BHP Billiton tender which is likely to see the resources giant consolidate its four superannuation funds, which are at present outsourced to four different external trustees.
It’s understood that RFPs for a consolidation of the $3 billion-plus suite of funds were sent late last year, and are due soon. The Deloitte superannuation practice has been hired to assist, and partner Wayne Walker and director Michael Gomersall will review the responses which are understood to be due soon.
The largest of the four schemes, the BHP Billiton No.1 Fund, has outsourced its investment management, member administration and trusteeship to Russell Investments for many years, continuing a relationship which began before Russell purchased Towers Perrin last decade.
BHP Billiton’s ‘No.2’ super fund is a legacy of its 2005 takeover of Western Mining. Member admin is outsourced to Plum, and investment management to Plum’s fellow subsidiary of National Australia Bank, MLC.
A third scheme springs from BHP Billiton’s ownership of South African-based manganese producer Samancor, and is outsourced to OnePath, the corporate and retail super provider now wholly owned by ANZ Bank.
A fourth scheme relates to BHP Billiton’s Worsley Alumina joint venture, and is outsourced to the Mercer Super Trust.
Warren Chant was the consultant behind the decision last February by the $1.1 billion corporate fund of OneSteel, formerly a part of BHP, to fully outsource to the Russell Super Solution Master Trust.
BHP Billiton is not the only big super tender in play – yesterday was the final day for responses to a tender which will decide the administrator of the PSS Accumulation Plan, for federal public servants not lucky enough to be part of a defined benefit scheme. The Department of Finance wants to separate the administration of the accumulation and DB schemes, keeping existing provider ComSuper dedicated to the latter funds. The tender is being run by SuperRatings and KPMG.