FirstChoice puts research contract to tender
COLONIAL First State Investments(CFS) has put the asset consulting contract for its flagship FirstChoice master trust out to tender, possibly spelling the end of its relationship with its existing consultant,Towers Perrin.
Towers was appointed as FirstChoice’s inaugural asset consultant following its launch by CFS last May, giving the consulting group total responsibility for the selection of managers on the master trust’s investment menu.
FirstChoice offers a total of 45 investment options on its menu, including nine multi-manager options.
Towers, along with van Eyk Research and a host of other asset consulting groups, is understood to be bidding for the new consulting contract.
CFS chief operating officer John Pearce would not be drawn last week on the reasons behind the decision to put the consulting contract out to tender.
But Towers’ decision last October to link up with theFrank Russellgroup to promote its SuperSolutions product may have played a role.
SuperSolutions, which is Towers’ outsourcing service for corporate superannuation funds, could be seen as a competitor to FirstChoice, which also bids for the business of outsourced corporate superannuation funds.
FirstChoice, promoted by CFS as back-to-basics master trust, has taken some $1.5 billion since its launch.
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