ANZFM outsources more functions

ANZ Funds Management has decided to, next year, move the remainder of its asset management team - its bond managers - from Wellington to Australia.

Tuesday, November 10th 1998, 12:00AM

ANZ Funds Management has decided to, next year, move the remainder of its asset management team - its bond managers - from Wellington to Australia.
The move pretty much wraps up ANZFM's decision to outsource the functions that are neither part of its core competencies nor areas where it has comparative advantages.
In the past year it has outsourced its New Zealand equity management to Coronet Asset Management and GMO Australia.
Also, on the asset management side, it has formed a strategic alliance with international consultancy firm Frank Russell to look after its international assets. This move lead to the recently launched Ascent Investment Programme (see earlier story).

ANZ Funds Management general manager Anthony Quirk says the firm is sticking to the areas it is very good at, namely distribution and marketing.
He says by being part of ANZFM's Melbourne-based asset management team, which looks after more than A$14 billion, the New Zealand bond managers will gain access to a greater depth of resources, including software, systems and back office support.
The move also makes it easier for ANZFM to retain asset managers and offer them succession planning options.
Quirk says one of the problems in New Zealand is that the market is so small that managers tend to rely on several key people. Problems arise if they decide to move on.
Also ANZFM is moving its back office functions across the Tasman and its sales and marketing team from Wellington to Auckland. The wholesale client service team will remain in New Zealand.
Quirk says there is a growing trend for businesses to move some functions to Auckland and others to Australia. One of ANZFM's wholesale clients (in a totally different industry) has made a similar move.
In the funds management area ANZFM is not the first manager to move part of its investment team across the Tasman. Prudential did a similar thing about 18 months ago.

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