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(June-2003) Super Solutions gets ready to roll
Towers Perrin’s Super Solutions master trust will open its doors on July 1 with two clients: the Towers Perrin staff superannuation plan and the accumulation section of an as yet, unnamed medium-sized corporate fund.
Towers Perrin’s Steve Schubert, who heads the group’s alliance with Frank Russell, says the master trust, which will use the Frank Russell investment platform, has been designed to suit the needs of larger super funds. However, it will be offered to smaller funds with assets of $50 million or $100 million.
Last year, Deutsche Bank closed its master trust, which it had built from scratch, after it failed to reach acceptable economies of scale. However, Schubert says Towers Perrin’s master trust starts off from different foundations.
Firstly, it falls under the Super Solutions banner, which has already attracted assets of $4 billion after hooking in the superannuation arrangements of large clients like BHP Billiton, One Steel and News Corporation.
Secondly, much of the start-up costs have already been incurred. The master trust will leverage off the administration capability that Towers Perrin built up in the 1990s, using the systems developed by the group in other parts of the world.
“We have had to use some local software, but things like call centre guides and case management systems are built on a global basis, which has allowed Towers Perrin to spread costs across its international operations,” Schubert says. “We also have internal expertise. Superannuation has been our business for years.”
The only thing that Towers Perrin had to add when it started Super Solutions in 2000 was an approved trustee, called Total Risk Management.
“When we needed an investment management platform, we decided that this wasn’t part of our core skills around the world... We landed up forming an alliance with Frank Russell with whom we had some mutual clients,” Schubert says.
AUTHOR
Zilla Efrat
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