Russell Investment Group has notched up two key wins in the corporate superannuation outsourcing stakes announcing that it has picked up George Western Foods and GE Corporation.
The two superannuation funds have a combined value of $400 million.
Russell announced this week that the two major companies were outsourcing management of their superannuation funds to the Russell SuperSolution Master trust, lifting funds under management to $2 billion.
Russell also announced that more than 10 companies had signed up to its new choice of fund package, Russell ChoiceSolution, which allows employers to completely outsource all elements of employee superannuation administration.
It said the companies signing up to ChoiceSolution include News Limited, Johnson and Johnson and BHP Billliton. News Limited earlier this year opted to outsource its superannuation fund to Russell.
Commenting on the outsourcing agreements, Russell’s managing director of institutional investment services, Stephen Roberts said employers were actively negotiating the best value super package for members in terms of achieving a sophisticated default fund, competitive insurance and comprehensive member services.
“Despite all the talk about expensive retail trusts, the fact is that a large percentage of employees will find themselves in good quality, competitively priced superannuation funds which are operating at wholesale rates as negotiated by their employers,” Roberts said.
He claimed that choice had in some ways distracted members from the underlying investment issues which ensured the best result in the long term.
“Our core message to employees is to focus on three key areas,” Roberts said. “Make sure you have your asset allocation right, make sure you have the right amount of insurance cover, and make sure you are saving enough for retirement.”
