BTFM investments left on hold
Several financial planning and research groups have slapped “hold” notices on new investment in BT Funds Management’s products as they wait for a buyer to emerge.
The moves follow news that Deutsche Bank has put BTFM on the block following its worldwide merger with its parent, Bankers Trust, in November last year.
The hold notices could have a noticeable effect on money coming into BT funds as some of the biggest financial planning groups divert new money to other fund managers until the deal is sealed.
A deal is widely expected to be finalised by the end of May, but there are concerns that its investment performance could suffer because of a possible lapse of focus in the decision making process in the meantime.
Added to this are questions as to whether its team will remain in place under new owners and whether its current aggressive and active investment style will be maintained.
"We do not want to put people into BTFM now and then take them out in two months time," says Bridges research manager Dominic McCormick.
Most of those who are still writing BTFM business say that they have placed the fund manager on "watch" and are closely monitoring the situation.
"The majority of our clients are long-term investors. We are not going to let three months of uncertainty disrupt their investment strategy. We will just wait and see who the new buyers are," says Kylie Lambert, Count Wealth Accountants deputy managing director.
While there is uncertainty, a number of financial planners and researchers do not expect huge changes to be made at BTFM because of its strong brands.
Morningstar managing director Graham Rich adds: "BTFM may be in some degree of flux, but it is still materially stronger than many other organisations."
At the time of going into press, Morningstar had suspended its ratings of BTFM, pending a possible downgrade. But Rich says his company does not make actual recommendations on funds, leaving it up to advisers to make their own decisions.
BT Funds Management - recommendations for new money
after sale news March 99 after Deutsche merger Nov 1998
Financial Planners
AMP Financial Planning recommend recommend
Austplanners recommend recommend
Bridges hold hold
Count recommend recommend
Deutsche Bank recommend recommend
Londsdale hold hold
NAB recommend recommend
National Mutual hold hold
RetireInvest recommend recommend
Westpac hold recommend
Researchers
ASSIRT hold recommend
Van Eyk Research hold hold
Morningstar suspended suspended
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
