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(February-2002) Russell scoops $2.7b BHP tender
Frank Russell has won a $2.7 billion implemented consulting contract from BHP Billiton, topping a dramatic year for the investment manager in which it has grown its business by 320 per cent.
The deal represents the next step in the existing relationship between BHP and Russell, which had acted as an advisory consultant to the BHP Billiton Super Fund since 1988.
Russell describes it as “the largest outsourcing deal for a superannuation fund in Australia’s history”. It follows a string of five other recent wins, which have helped Russell consolidate itself as a dominant player in the implemented consulting arena.
Among these are a $30 million superannuation deal from the Sun Microsystems Superannuation Fund, the Clemenger Super Plan (assets: $40 million), Victorian Independent Schools Super Fund ($240 million) and the Normandy Group Staff Superannuation Fund ($50 million). These funds join BAE Systems, Campbell Arnotts and Nabalco staff superannuation funds as clients of Russell.
Russell’s head of business development Veronik Verkest says implemented consulting has certainly been an area with lots of momentum. Last year alone, Russell won nine new clients in this area and only one of these had some form of exposure to implemented consulting before (VISS with ipac).
The new clients gave Russell an extra $3.3 billion in total funds under management, bringing total assets in the Russell funds to $7.5 billion at the end of 2001.
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