The Tasmania Public Sector Superannuation Commission hired Russell Investments to manage A$1.9 billion ($1.4 billion) in public employee defined benefits assets.
Adrian Christian, the Hobart, Tasmania-based director of the office of the superannuation commission, said in a telephone interview that Russell Investments became the public system’s first “implemented consultant,” effective April 1.
Russell’s selection, following a search in the final quarter of 2016, was part of a broader restructuring of Tasmania’s retirement system establishing separate trustees for those DB assets, across five separate plans, and roughly A$4 billion in assets accumulated by the defined contribution plan set up in 1999 with the closure of those DB plans to new employees, said Mr. Christian.
Under the prior scheme, a retirement benefits fund board managed the system’s external managers, on the strength of “expert advice” in areas such as dynamic and tactical asset allocation, he said.
The A$4 billion in DC assets for public employees was transferred to member-owned super fund Tasplan.