Link and Russell form alliance to decouple investment and administration

Link Group will take on all administration duties for Russell Investments stand-alone administration super clients and its employer clients under a new alliance announced today.

Link will integrate Russell's superannuation administration business to offer both companies' existing super clients and the broader market a "joint best-of-breed administration/investment service".

Russell's 130-plus staff will team up with Link's administration team to oversee $100 billion in assets, while Link will absorb all of Russell's administration systems and technologies.

Link Group managing director John McMurtrie said he welcomed Russell staff to the 1,800-strong Link group, which provides administration services to more than four million Australians.

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"Our objective is to continue to deepen our scale and member footprint in the highly competitive superannuation member administration industry in Australia.

"Having completed our almost $200 million investment program over two years ago, we are in a strong position to support all of our clients through an uncertain regulatory environment," he said.

Link Group acquired Australian Administration Services (AAS) in 2006 and Future Plus administration services last December, including 200,000 members and funds under administration of $10 billion.

Russell chief executive Asia Pacific Alan Schoenheimer said the alliance would be particularly attractive to mid-size funds and self-managed super funds. 

He said long-term success in the super industry required strong investment capabilities and strong administration expertise, which super funds would begin to decouple.

"We believe there will be a trend towards super funds decoupling their administration and investment arrangements in order to access best-of-breed providers in the industry to ensure both the investment element and administration element remain highly competitive - all while controlling costs," he said.