Dealers and researchers on hold over independent BT
Dealer groups and research houses have given a mixed reaction to the announcement by Deutsche Bank that BT Funds Management is to remain a separately managed operation in Australia.
National Mutual's two financial planning groups and its Summit master trust ,as well as Godfrey Pembroke Financial Consultants, have maintained hold recommendations on new money flowing into BT funds.
On the other hand, Bridges Personal Investment Services and van Eyk Research have both removed their hold recommendations on BT in light of the announcement.
National Mutual investment research manager Lawrie Jonas says the group's large financial planning network will not remove the hold recommendation until a thorough review is undertaken following the full integration of BT and Deutsche.
"We'll wait until the whole deal is consummated, and that's not likely until May or June and possibly later," Jonas told Money Management.
Godfrey Pembroke research manager Janice Sengupta says the announcement gave "no real basis to go one way or the other." She says Godfrey Pembroke has a regular review with BT this week but the group will make a final decision on the status of BT funds "within the next three months".
Van Eyk Research managing director Steven van Eyk says he is satisfied BT will operate independently for at least the next two years and has therefore lifted the hold recommendation.
BT Funds Management chief executive Ian Martin says he is "delighted" with the response from the groups which have lifted their hold recommendations, He is confident other groups will follow suit once they have reviewed the new structure.
Martin told Money Management Deutsche had moved quickly to assure clients and staff the group would remain independent.
As reported in Money Management, a number of financial planning groups had expressed concern that BT's investment process might be compromised by changes to its management. Some BT staffers also feared that interference by the new parent could see a cultural shift and a subsequent string of departures.
Under the announced arrangement, BT Funds Management will form part of Deutsche's asset management division, alongside Morgan Grenfell. Deutsche's Australian funds management and financial planning operation forms part of Deutsche's private banking arm.
Recommended for you
The board of Insignia Financial has reached a decision regarding the possible acquisition of the firm by US private equity giant Bain Capital.
Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses.
There has been a 16.3 per cent rise in the wealth of Australian billionaires this year to over $200 billion, UBS finds, as Australian advisers shift their offerings to meet this expansion and service their unique needs.
AZ NGA is looking to triple in size over the next five years as US investment giant Oaktree completes its $240 million investment in the professional services company.
