Rothschild defends independence
RothschildAustralia Asset Management will operate as an independent entity under the deal announced last week to combine its funds management business with the Westpac Bank.
The move will secure the as yet to be named entity’s position as the fifth-largest retail funds manager in Australia with $17 billion of retail funds under management.
“We’re running the business. We’ve got to report into Westpac and perform well. They’re not telling us what to do,” Rothschild Australia Asset Management’s chief executive Peter Martin says.
“If we perform, there is never any risk of the parent coming in over the top. That is our best defence,” he says.
None of Rothschild Australia Asset Management’s products will be branded by Westpac and Rothschild will remain in its O’Connell Street offices in Sydney.
While key professionals from both organisations will lead the newly branded organisation, Martin says Rothschild’s senior management team will be unaffected by the deal.
“Retention arrangements are in place for our senior management team. There will be modest redundancies over here — we’re not guaranteeing anyone a spot, but the investment team will essentially remain the same,” he says.
Westpac’s head of equities Don Hamson will join Rothschild to take on the newly created role of general manager of investments, and will report to Rothschild’s chief investment officer Jonathon Pain.
Martin says financial planners should not be concerned about their relationship with Westpac as Rothschild will not be directly associated with the bank.
He says financial planners will continue to deal with the same professionals at Rothschild, and its new form will enhance its capabilities to help planners.
Over the next three months the Rothschild name will remain unchanged, with the new combined entity to be co-branded with Rothschild by the third quarter this year. After nine months, the Rothschild name will disappear altogether.
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