BTIM to beef up fund capabilities

Rules out product proliferation

By Vishal Teckchandani
Mon 10 May 2010

Acquisitions are not an immediate priority for the fund manager as it looks to boost its internal expertise.

BT Investment Management (BTIM) chief executive Emilio Gonzalez has said the firm will focus on strengthening its internal funds management capabilities and signalled that acquisitions are no longer a priority.

Mergers and acquisitions were on the backburner while the firm focused on boosting its fixed-income funds and diversified products, Gonzalez said.

"I would say we retain a watching brief on mergers and acquisitions and ... perhaps we should not underestimate the diversity of broad asset classes that we have," he said.

"Clearly, our core portfolio is Aussie equities and that has done extremely well and we have the opportunity to reposition and grow a lot of our other capabilities as well.

"So ... before we go out and expand in other new areas and new opportunities, let's make sure that with what we are currently doing we are getting it to the maximum level that we want to."

He said mergers and acquisitions were not an immediate priority, but "nothing is ever off the table".

"We can identify new areas that may be complementary or add to the revenue growth, but I think before we venture too far we have got to make sure what we are currently doing is the best that we can."

Prior to his resignation in 2009, former BTIM chief executive Dirk Morris said the firm might buy whole boutiques and rival listed fund managers specialising in alternative asset management, including unlisted equity, infrastructure, private equity and hedge funds.

Gonzalez also said he wanted to make sure the products BTIM manufactured in the future were well thought out and suited the needs of clients.

"I am keen to ensure that we do not become a product proliferation company," he said.

"It's going to be driven by the clients' needs and wants rather than what we think we can generate out of different investment strategies, and I have started a team and project around that already."

Go to today's InvestorDaily news

More stories by this author