WestpacTrust has sacked all its remaining asset managers and decided to outsource funds management to other parties.
One of the big winners of this move is Armstrong Jones that has picked up a $250 million mandate to manage New Zealand equities.
WestpacTrust's moves put it into the same category as other banks, namely a packager and distributor of funds. The only exception to this trend is Bank of New Zealand.
WestpacTrust Financial Services managing director Girol Karacaoglu says the decision to close down the asset management functions of the business is consistent with previous moves. Earlier it outsourced management of Australian equities to Westpac Investment Management in Australia, international equities to UBS Brinson and global bonds to Salomon Brothers Asset Management.
Tactical and strategic asset allocation will remain in-house and will be closely aligned with the management of New Zealand fixed interest and the currency exposure of international equities and fixed interest.
An in-house investment specialist will be appointed to manage NZ bonds and currency exposure of international investments.
Karacaoglu says these outsourcing moves signal the completion of the major strategic changes that have been made to the bank's financial services operations.
WestpacTrust has sacked all its remaining asset managers and decided to outsource funds management to other parties.