News Ltd., Surry Hills, Australia, outsourced management of its A$700 million (US$535.8 million) pension fund to Russell Investment Group, said Craig Morris, Russell spokesman. Company officials decided to outsource the fund, known as NewsSuper, in advance of July 1 choice-of-funds legislation that will allow employees to choose where to put their retirement plan contributions.
Keith Brodie, human resources director for News, said in a statement: "We concluded that with the advent of choice and the ongoing changes to government regulation and associated compliance burden, we were better off leaving it to the experts." Mr. Brodie did not return a call seeking comment.
Towers Perrin, which merged with Russell in 2004, had been trustee and administrator for the NewsSuper fund.
