FuturePlus wins $2.2 billion SERF mandate

The decision by FuturePlus Financial Services (FPFS) to recruit former Stevedoring Employees Retirement Fund chief executive, Terry Newson, as chief investment officer has paid dividends in the form of a $2.2 billion contract with SERF and the Seafarers Retirement Fund (SRF).

Futureplus, the services and administration jointly owned by the Local Government and Energy Industries Superannuation Schemes, announced it had won the Seafarers mandate yesterday with FPFS chief executive, Brett Westbrook claiming it cemented the organisation’s position as a professional investment manager.

He said FPFS now had almost $12 billion in funds under management.

Westbrook said the arrangement with SERF and SRF was similar in nature to that which exists between FPFS and Local Government Financial Services.

“The deals allow smaller organisations to leverage off the investment expertise that we’ve developed over the years and to plug into our large infrastructure and support network,” he said. “Because of our scale, we can negotiate reduced manager fees on clients’ behalf and provide savings in asset consulting expenses and consulting expenses.”

Westbrook said the services FPFS would provide to SERF and SRF included portfolio construction advice, strategy selection, manager selection, performance and risk reporting.

The contract between FPSF and SERF/SRF resonates with recent changes within the Fund Executives Association where Westbrook has succeeded Newson as chairman.