Guild Trustee Services, the Sydney-based trustee for roughly A$1.3 billion ($1 billion) in retirement assets, hired Russell Investments to provide investment advice and investment management services for six of its portfolio’s eight asset segments.
The implemented consulting mandate will leave Russell Investments managing the bulk of the assets Guild Trustee Services oversees for 74,000 members in three separate funds: GuildSuper, which serves pharmacy and health-care professionals; Child Care Super, which serves child-care professionals; and GuildPension, focused on providing members with an income stream in retirement.
A spokeswoman said Mercer Investments had been the implemented consulting provider for the entire portfolio. Going forward, Russell will oversee the portfolio’s allocations to Australian equity, international equity, property, alternatives (growth and defensive), fixed income and cash/money market securities, while Mercer will retain oversight of investments in Australian direct property and unlisted infrastructure.
Spokeswomen for Guild Trustee and Russell declined to say exactly how much of the portfolio, in dollar terms, Russell Investments and Mercer Investments will be managing, although the Guild Trustee spokeswoman said Russell will oversee “most” of the assets.
Mario Pirone, CEO of Guild Group, suggested in a news release that the changes to the portfolio’s implemented consulting lineup were driven by performance-related factors. “The appointment is aimed at delivering stronger investment performance for our 74,000 members,” he said.
A spokesman for Mercer in Australia couldn’t immediately be reached for comment.