The Rio Tinto Staff Superannuation Fund, one of the few remaining large corporate funds, is looking to outsource overall management of the fund and is conducting a review.
The $5.1 billion fund has used an implemented consulting arrangement though its consultant JANA Investment Advisers for several years. It is a sophisticated fund with nine investment options, overseen by principal investment officer Wayne Grant. It is also one of the few that conducts elections for member trustee positions.
The fund has about 1500 members and has had a long-term relationship from a HR and insurance perspective with Marsh & McLennan, owner of Mercer Investments and the Mercer Retirement Trust, which one suspects will be an enthusiastic bidder for the new business.
Even when trusteeship is outsourced by the plan sponsor, funds retain responsibility for their outsource partners’ actions. There is also usually a long tail of old defined benefit accounts to be administered.
* Greg Bright is publisher of Investor Strategy News (Australia)