Nestlé outsources super to Russell
Expanded relationship sees Russell given ‘total outsourcing’ responsibility for the $560 million Nestlé Australia Group Superannuation Fund
Sydney, 28 September 2007 – A division of the world’s largest food and beverage company, Nestlé Australia Ltd, and global investment and superannuation specialist, Russell Investment Group (Russell), today announced that Russell has been appointed as investment manager and outsourced provider of an expanded range of administration and trustee services for the $560 million, 5,500 member, Nestlé Australia Group Superannuation Fund (the Fund).
The announcement of the new ‘total outsourcing’ arrangement is an extension of the two organisations’ existing partnership, whereby Russell already provides member administration services as well as actuarial and consulting services to the Fund, as well as choice of fund administration.
Under the new arrangement, Russell will now also manage the Fund’s $560 million in assets, the vast majority of which will be invested via a series of Russell multi-manager funds under a fully implemented investment solution. Nestlé will also outsource the Trusteeship of its super fund to Russell, through Russell’s professional superannuation trustee service Total Risk Management Pty Ltd (TRM). Russell will also provide an expanded administration service, including administration activities previously undertaken by the Fund’s in-house team. Under the new total outsourcing agreement, Russell will arrange the delivery of all necessary services for the Fund on a fully integrated basis.
TRM currently provides Trustee services for major corporate clients through Russell SuperSolution (a Master Trust) and through stand alone funds retained under total outsourced arrangements. Those arrangements cover around $8 billion in assets, with clients including BHP Billiton, Sara Lee, OneSteel, BlueScope Steel, GE, H.J. Heinz, Johnson & Johnson, Kraft, AGL and News Limited.
A Nestlé Fund Policy Committee will now be formed from the Fund’s current trustee board and will comprise equal number of existing member elected representatives and employer representatives appointed by Nestlé. The new Policy Committee will work alongside Russell to continue to enhance the Fund, and to facilitate the introduction of new benefits for members.
Mr Steve Schubert, Director Russell Superannuation, said Russell was very pleased to be able to offer a seamless range of services that would support Nestlé’s ambition to provide the best investment solutions as well as member services available for its Fund.
“Through our global investment teams, our established professional trustee services, our actuarial and employee benefits division and administration partnership with global leader IBM, Russell is well positioned to provide a total outsourcing solution that combines the best in investment solutions and administrative support to progressive superannuation funds,” he said.
“We are delighted to extend our relationship with the team at Nestlé and look forward to delivering exceptional services and investment innovation to members of the Nestlé Fund.”
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