Russell Investments has agreed to acquire Zurich Investment Management Ltd. (ZIM), in a transaction that will increase its Australian wealth business and adviser network at a time when high-net-worth investors are re-examining how they protect and allocate assets.
The deal is expected to add nearly $2 billion in funds under management (FUM), taking Russell Investments’ Australian retail and wealth FUM to about $11 billion. It will also increase the firm’s presence in the local financial adviser market, with ZIM’s adviser relationships and distribution arrangements to be integrated into Russell Investments’ Australian wealth operations. Jason Edgar, head of Asia-Pacific at Russell Investments, said the move aligns with the firm’s strategy in the intermediated wealth channel. “This acquisition adds to the strong growth and momentum in our Australia wealth business. Delivering institutional grade investment solutions to wealth advisers is a global priority for Russell Investments. Adding a business of ZIM’s calibre will enable us to extend these capabilities to even more advisers and reinforces our commitment to leading in this fast-growing segment of the Australian market,” Edgar said.
Russell Investments and Zurich said there will be no immediate changes to ZIM’s existing fund line-up, which includes multi-asset, sector and single-strategy funds. Once the transaction closes, ZIM’s distribution, client-facing, and retail investment staff are expected to join Russell Investments Australia, forming a combined team focused on supporting advisers and their end clients. The transaction is subject to customary regulatory and closing conditions, with completion anticipated around the end of the first quarter of 2026. Financial terms have not been disclosed.
For Zurich Financial Services Australia, the sale of ZIM forms part of a move to concentrate on its core insurance activities and related businesses in the local market. “Over many years, Zurich Investment Management has delivered compelling managed fund solutions to Australian investors. The decision to divest ZIM reflects where Zurich is heading as an organisation, allowing us to continue to focus on our core operations in the Australian insurance market. Russell Investments brings global scale, deep investment capabilities, and a strong local presence, making it an ideal partner for our advisers, investors, and employees,” Justin Delaney, CEO of Zurich Australia & New Zealand, said. Zurich’s Australian operations span life insurance, commercial insurance, and investments, and the group continues to offer life cover under both the Zurich and OnePath Life brands. The divestment of ZIM does not change Zurich’s existing insurance portfolios but may shape future product and distribution arrangements, including those that combine investment and protection solutions for advised high-net-worth clients.
The Russell–ZIM transaction comes as affluent Australians give greater weight to wealth preservation, lifestyle risk, and legacy planning, trends that have implications for insurers, brokers, and wealth managers. Chubb’s 2025 Wealth Report in Australia indicates that high-net-worth individuals (HNWIs) are placing more emphasis on wealth as a means to personal choice, early retirement, and family outcomes. While capital growth remains important, respondents increasingly link wealth to flexibility and non-financial goals.
In a survey of 200 Australian HNWIs, 72% of millennials and 65% of Gen Z respondents said they aim to retire early, viewing wealth primarily as freedom rather than only security. Seventy-nine percent reported holding a personal collection – commonly jewellery, fine art, and timepieces – and 70% said they plan to invest in jewellery and gems in the next 12 months. Just over half (51%) said their home is central to their family life and identity, reinforcing the focus on property protection and continuity planning.
These attitudes are altering risk profiles. Affluent Australians reported concern about both traditional and emerging risks. For property, three of the top five perceived risks to homes relate to fire and water damage within the home. Natural catastrophes rank among the main concerns, with 93% of respondents at least moderately concerned about environmental instability. Loss of investment value is cited by 91% as a key risk to wealth and lifestyle, while 58% are worried about the impact of inflation. Sixty percent identify cyber security as an issue. For insurers and brokers, the findings suggest growing demand for comprehensive home and collections cover, specialist valuations, and structured risk advice. Many HNWIs are responding through measures such as home appraisals and risk assessments to address internal water leaks, floods, and storms. The report also points to greater expectations of insurers’ advisory roles, with 62% seeking preservation advice for collections and 47% seeking consultation on item valuations to keep coverage aligned with current asset values.
The acquisition also takes place against a backdrop of margin pressure in the global asset and wealth management (AWM) industry. According to PwC’s 2025 AWM Revolution research, global assets under management are projected to increase from about US$139 trillion to US$200 trillion by 2030, with up to US$230 billion in new revenue available in the next five years. At the same time, profit as a share of AUM has fallen about 19% since 2018 and is forecast to decline by a further 9% by 2030.
The study – based on market projections, surveys of managers, investors, and distributors, and analysis of financial data from global managers – found that 89% of asset managers have experienced profitability pressure over the past five years, with more than one in five describing that pressure as very high. Only one in four managers said they are very confident in their profitability strategy. In this environment, Russell Investments’ effort to add scale, strengthen adviser relationships, and extend its Australian wealth offering – alongside Zurich’s decision to focus more tightly on core insurance lines – reflects how large groups are adjusting their business mix. For Australia’s insurance and wealth sectors, the transaction points to closer alignment between investment management, adviser-led distribution, and risk transfer solutions for affluent and high-net-worth clients.
