Global asset manager Russell Investments has been appointed by the Tasmanian Public Sector Superannuation Commission to manage $1.9 billion in defined benefit assets.
Under the agreement, Russell will act as implemented investment consultant for the commission, assisting them in achieving investment outcomes for members, as well as delivering multi-asset investment strategies in accordance with the commission's needs.
Director of the Office of the Superannuation Commission, Adrian Christian, said the commission turned to Russell in large part due to the firm's long-established superannuation heritage and significant experience in implemented consulting, particularly with complex defined benefit funds.
"Russell Investments offers the necessary capabilities, global reach and experience to help us deliver solid, repeatable investment performance," Christian said.
The Superannuation Commission was established in 2016 to oversee the administration of state-owned Retirement Benefits Fund (RBF). Last month the fund finalised its merger with Tasplan, transferring its defined contribution and defined benefit members. Tasplan now has $7.6 billion in funds under management and more than 165,000 members.
Russell Investments chief executive for the Asia-Pacific region, Pete Gunning, highlighted that increasing interest in the firm's implemented consulting model is driven in large part by the market's dynamic nature.
"In today's volatile market environment investors need to be equipped with access to diverse, effective and nimble investment strategies," Gunning said.
"With our world-class, multi-asset investment capabilities we're well-positioned to assist superannuation funds achieve their investment outcome objectives."
Over the past three years, Russell Investments has witnessed an increasing demand for their services with a 45% growth in implemented consulting clients. Globally, Russell Investments has $356 billion in assets under management.
In October 2016, the firm won a $1.3 billion investment management mandate from Guild Trustee Services, the trustee for GuildSuper, Child Care Super and GuildPension to manage assets across six classes. The firm also recently struck an $850 million white-label deal with Netwealth to enter the platform market.