ACT Treasury appoints Russell to advise on $3 billion in investment assets
Five-year deal confirms Russell as asset consultant of choice for large institutional investors; Russell continues to strengthen institutional team
Sydney, 10 September, 2007 – ACT Department of Treasury today announced the appointment of global investment and superannuation specialist Russell Investment Group to provide asset consulting advice over the coming five years for financial investments worth in excess of $3 billion. Russell today also announced further additions to its Institutional Investments practice as Australiansourced assets under advice and management continue to grow.
Russell’s new five year appointment to ACT Treasury follows a lengthy and detailed open tender process involving nine investment consulting firms. Mr Stephen Roberts, Russell’s Managing Director Institutional Investment Services, said the $3 billion mandate was an exciting opportunity for Russell and that the appointment again reaffirmed Russell's reputation as investment consultant of choice for large institutional investors.
“At Russell, we pride ourselves on being able successfully to respond to the needs of each individual client, and we are very excited by the opportunity to work with the ACT Treasury to help secure the best results for its investment assets," he said. "It also cements our position in the top three of consultants in Australia by funds under advice and number one in the areas of non-super and corporate super funds."
The ACT Department of Treasury is responsible for the management of the majority of the Australian Capital Territory’s financial investment assets. ACT Treasury has chosen Russell as investment advisor for its two key financial investment accounts - the Superannuation Provision Account (SPA) and the Territory Banking Account (TBA). Together, the accounts represent an asset value in excess of $3 billion.
Nine investment consulting firms responded to the ACT Government’s open tender seeking the services of an Asset Consultant to develop and implement investment objectives, strategies, Page 2 of 3 benchmarks, funds manager research and appointment, investment markets research and general investment advice and education.
Garry Cartwright, Manager, Superannuation Unit at ACT Treasury, cited Russell’s tailored approach to investment advice and the standard and calibre of the Russell advisory team assigned to the account - headed by Sam Sicilia - as key reasons behind the selection.
“The breadth and depth of Russell’s investment consulting capability in Australia was a key factor in identifying the organisation that would best meet our needs going forward,” Mr Cartwright said.
ACT Treasury’s Central Financing Unit Manager, Pat McAuliffe , said: “Russell’s access to global capital market and investment manager research resources, combined with its dedicated approach to the provision of highest quality, proactive and comprehensive client advice were compelling features in forming the ultimate decision."
The SPA was established in 1991 as an account in which the ACT Government sets funds aside to meet future unfunded employer superannuation obligations for its employees who are members of the CSS and PSS defined benefits schemes. The SPA is an ACT Government account that receives approximately $100 million in budget appropriation funding per annum with all investment interest and dividend income reinvested at source. The SPA makes payments in connection with the ACT Government’s defined benefit employer superannuation liabilities.
The TBA investments comprise the cash balance from the Territory Banking Account and cash held by ACT Government Agencies in their banking accounts. These balances are funds that are invested in money market securities until required by the Government in accordance with its budget policy and appropriation decisions.
Russell bolsters institutional team
New additions to Russell's Investment Consulting team include Richard A. Dinham, who has been appointed Senior Consultant, Investment Consulting Group. Based in Sydney, Richard brings over 15 years of financial services experience from the UK to his new role, most recently with multi-manager Investment Solutions Ltd as head of institutional business. In this role, he was responsible for all aspects of the UK business, including client service, business development, product development and team management. Richard was also formerly an examiner for the Institute of Actuaries in the UK.
Graeme Bibby has been appointed a Consultant in the Investment Consulting Group. Based in Melbourne, Graeme joins Russell from Mercer Investment Consulting where he was a Senior Associate for four years and provided advice to clients on investment objectives, strategy, asset allocation, investment structure and manager section, and participation in Australian shares and fixed income manager research.
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