Russell Investments and Link Group have formed an alliance to improve superannuation services on the back of the government's Stronger Super reforms.
Under the new arrangement, Link will take on the administrative duties for Russell's administration super clients and employer clients within the Russell SuperSolution MasterTrust to further service offerings in light of upcoming regulation.
"In this competitive environment, firms in the super industry will need to focus on their specialty," Russell's chief executive for the Asia-Pacific, Alan Schoenheimer, said.
"We believe there will be a trend towards super funds decoupling their administration and investment arrangements in order to access best of breed providers in the industry to ensure both the investment element and administration element remain highly competitive - all the while controlling costs."
Russell said that having strong administration expertise is necessary for long-term success in Australia's rapidly changing superannuation sector.
The alliance will see more than 130 Russell administration staff working within the Link team, which will absorb all of Russell's existing administration systems and technologies.
"Our objective is to continue to deepen our scale and member footprint in the highly competitive superannuation member administration industry in Australia," Link Group managing director John McMurtrie said.
"We believe the alliance will be a particularly attractive proposition for mid-size super funds and self-administered funds," Mr Schoenheimer said.
"Given Russell's core global focus on providing multi-asset investment solutions, this alliance ensures our clients will continue to have the best combination of investment and administration services available in this market."
