Performance pick-up at the death
The performance of BNZ's international bond manager has picked up just as it's about to be replaced.
Wednesday, August 6th 2003, 7:05AM
The company earlier said it was replacing Credit Suisse Asset Management as the manager with a dual team of California-based PIMCO and Fischer Francis Frances Trees and Watts.
Credit Suisse was being replaced as its recent performance hasn’t been that good. BNZ says by using two complementary managers it will be able to deliver better returns to investors.
“The advantage of the multi-manager approach is that the complementary styles of PIMCO and Fischer Frances should provide more consistent performance with reduced volatility. Investors will no longer be reliant on a single manager to get it right all the time,” BNZ says.
However, since BNZ started preparing for the change the fund has started to perform better as the mandate Credit Suisse has been working to has been tightened up.
BNZ says the mandate was tightened to make sure that the out-going manager didn’t take positions which were likely to be undone by the incoming managers.
Originally the manager change was meant to take place on August 11, but it has been delayed because of structural issues.
BNZ says it can improve the structure which will mean that the ultimate returns to investors will be better than under the originally proposed structure.
It is likely that the underlying fund in the new structure will be an ordinary wholesale Australian unit trust. BNZ is not moving to the tax-effective, but somewhat controversial, Australian unit trust trust (AUT) structure.
No date has yet been announced for the relaunch.
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