IOOF Holdings, the Australian financial services firm, has chosen Russell Investments as consultant to help manage the $10 billion worth of multi-manager portfolios under its funds management unit.

The deal commenced early this month, with Russell expected to have an initial focus on asset allocation, investment strategy, and portfolio efficiency, the company said in a statement yesterday. Russell's investment consulting team will assist the recently reorganised investment business of IOOF, which oversees the firm's multimix multi-manager portfolios and united funds management.

"In Australia and around the world sophisticated investors are seeking consultants who can not only provide tailored, long-term solutions to highly complex investment scenarios, but also guide them through the intricacies of effective implementation," said Greg Liddell, the head of investment consulting for Russell Investments.

IOOF has been implementing changes to its structure after merging with Australian Wealth Management in April 2009 and acquiring Skandia in March 2009, as revealed by WealthBriefingAsia. IOOF's product and service lineup includes wealth management, superannuation, investment management, asset management, estate planning, and corporate trust.

"We feel Russell is best positioned to help us achieve this through its robust and diverse investment consulting capabilities and strong manager research," said Steve Merlicek, the chief investment officer of IOOF.

"Russell’s strategic tilting capabilities and its strong actuarial practice are also areas which may be useful for the group going forward,”" Mr Merlicek added.