BT turns on the charm to sway dealers
BT Funds Management has won over all but one of the dealer groups and research houses expressing doubts over BT’s management following its planned merger with Deutsche Bank.
Godfrey Pembroke Financial Consultants has lifted its 'hold' recommendation on BT's retail and wholesale funds, leaving National Mutual as the only company still adopting a wait-and-see attitude on BT's future.
Leanne Milton, senior investment and research analyst at National Mutual, confirms there have been ongoing discussions with BT, but the company would not give its advisers a free rein until the merger has gone through.
"We will wait until the merger has happened before deciding. There are other issues that we also need to work through - such as the investment procedure - and we want to wait until after the merger before discussing them," she says.
Godfrey Pembroke research manager Janice Sengupta confirms BT has been keen to win over the doubters, promising dealers greater depths of information in the future. "They are less secretive than they have been. There has traditionally been some reticence in the type of information they would release, but they are now being more forthcoming and there is a greater articulation of the investment approach," she says.
She adds that the decision to lift the 'hold' notice follows a full review of BT's management style, people and processes. The implementation of new risk control procedures was also a key factor in lifting the recommendation.
Godfrey Pembroke has, however, maintained a 'hold' on BT's Global Resource Fund. "That is part of our broader strategy in the resource sector. We don't view resources as a good long-term potential as they have become less important to the Australian economy," says Sengupta.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
