Fund managers tighten belts

March 27, 2011 - PRLog -- Leading the charge is poorly performing BT Funds Management, which is in the process of cutting 320 jobs, or nearly 10 per cent of its workforce.

Most of the job losses are in the administration and IT divisions. So far about 150 people have already left the company.

The remaining 170 will be gone by year-end. A BT spokesperson said the cuts were consistent with other funds companies.

"You've got weaker markets and so, of course, you've got to be focused on costs," she said.

Other fund managers, including AMP Henderson, are believed to be cutting costs across the board, but so far there are no indications of staff losses.

Rothschild Australia Asset Management spokesman Mr Rob White said Rothschild would also look at cutting costs.

"We will be discussing costs in light of the market conditions, as I expect most fund managers would be ... but there are no plans to cut staff right now," he said.

In the case of BT, the decline in world share values combined with the outflow of funds caused by clients pulling out of poorly performing trusts has eaten into the company's profits.

Most management companies around the globe are feeling the pinch, as market falls sap the fee revenue charged to funds under management, thus affecting earnings.

However, the BT spokesperson said that while phone calls from nervous clients had increased by 30 per cent since the attacks, the number of redemptions was still below average.

Other fund managers, including Amvescap and Barlow Asset Management, have also suffered massive share price falls this month.

But the markets this month haven't been all bad news for fund management companies.

Birchall McCallen, whose fund inflows have remained strong this year, has not announced any cost-cutting actions, sources said Friday.

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Birchall McCallen is a discretionary portfolio offering that has access to a wide range of global investment opportunities, through a blend of expert fund managers, who are themselves leaders in their field.