Russell appoints new independent director for trustee outsourcing
Upholding good governance crucial for superannuation funds
Russell Investments has today announced the appointment of industry veteran Marian Carr as an independent director to its superannuation trustee board, further strengthening the trustee’s investment expertise for the benefit of its superannuation clients.
Russell Investments provides outsourced trustee services for superannuation funds through its wholly owned subsidiary Total Risk Management (TRM). TRM is led by a board of six directors, four of whom are independent of Russell. The board has a variety of industry experience in areas such as actuarial services, investments and financial services. Ms Carr will make up the fourth independent director.
“We provide strategic guidance for some of Australia’s largest and most well known employers and it is crucial for us to have experienced superannuation professionals for TRM’s board. We are committed to providing experienced senior Russell employees as board members, while also having four directors independent of Russell to provide clients with confidence that we have their members’ interests foremost in our minds,” said Chris Corneil, CEO, Australasia, Russell Investments.
TRM’s board members now comprise two Russell Investments employees Jacqueline Waldthausen, who is chief financial officer and Anna Hocking who is director of governments and institutions. There are four directors independent of Russell, Marian Carr, Tim Trahair, Bruce Edwards and David Solomon, the chairman.
Ms Carr brings 30 years’ industry experience and was previously deputy managing director of MIR Investment Management and prior to this chief investment officer for Harwood Superannuation Fund. At Harwood she was responsible for assisting the trustee to formulate investment objectives and strategies, managed the fund’s external investment managers and directly managed various portfolios including Australian shares, listed property trusts, bonds, cash and currency.
Commenting on her appointment, Ms Carr said: “As a former client of Russell’s from my days at Harwood I know the company well. I believe risk control and liquidity management are paramount for superannuation funds in the current climate and am excited Russell is leading the way here with new innovations.”
One such innovation is Russell’s total fund evaluator – a unique model for super fund liquidity testing. It allows a fund to develop a comprehensive picture of its future cash flows based on member movements, to test the effect of market shocks and aid asset allocation decisions.
As the fourth independent director, Ms Carr will also ensure TRM upholds best practice in board composition and background, which is important in the current regulatory climate.
“Over the past twelve months, the spotlight has focused more intensely on governance, not only as a result of the Cooper review but because people want to know their retirement savings are being managed according to the highest standards of governance,” said Mr Corneil. “As a provider of trustee services it is crucial for Russell to be amongst those leading the way in this area.”
A recent Russell survey of governance practices within 40 superannuation funds found that areas in need of improvement include selecting board members with an appropriate level of financial experience and sufficient independent directors. For example, more than half of funds did not have a single independent director, indicating there will be a long way to go to meet Cooper’s recommendation that all funds have at least one. There were also some funds with few, or even no board members with a finance background, while many were employee or employer nominated.
“With a strong, experienced team Russell is as well placed as ever to compete on efficiency and quality alongside the biggest players in this market,” Mr Corneil concluded.
