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
A former Insignia Financial C-suite exec has taken on a leadership role at MUFG Retirement Solutions as it announces chief executive Dee McGrath will depart after six years.
The Finance Sector Union has urged any private equity deal for Insignia Financial should make wellbeing paramount for its 4,000 employees, having spent 2024 negotiating an enterprise agreement.
In its pre-budget submission, the FAAA has proposed a government assistance package that could see up to 1,000 financial advice practices receive $10,000 each for hiring a PY candidate.
A third private equity player has emerged in the bidding war to acquire Insignia Financial, rivalling Bain Capital and CC Capital.
