Second opinions on super

By PAULA OLIVER

A second investment adviser has been appointed to help the Guardians of the New Zealand Superannuation Board.

Frank Russell Company, a global investment management and consulting firm based in the US, will begin giving second opinion advice as soon as the board agrees on terms and conditions.

The board is expected to consider preliminary advice on the strategic asset allocation of the fund over the next two months.

Chairman David May said that a two-level adviser structure - with Mercer Investment Consulting as the primary adviser - would ensure that the information the board received was rigorously tested and reviewed.

Frank Russell Company is one of the world's largest retirement-plan consultants.

It operates in 35 countries, and locally has been involved with the Government Superannuation Fund and in providing advice for institutional investors such as the National Provident Fund, Earthquake Commission and the ASB Community Trust.

Green Party co-leader Rod Donald yesterday attacked the appointment of Frank Russell, describing it as "another nail in the coffin" for the super fund.

He pointed to the company's advice to invest overseas as a reason the fund lost more than $300 million in quick time last year.

"You would get better advice from a Turf Digest," Donald said.

The fund is expected to hold about $1.9 billion at June 30 and will peak at around $160 billion in today's dollars.

The board expects to begin investing its funds in the third quarter of the year.