PTO cans outsourcing move
The Public Trust Office (PTO) has put on hold its plans to outsource management of its active Australasian equity and property investments.
Thursday, September 6th 2001, 10:30PM
The Public Trust Office (PTO) has put on hold its plans to outsource management of its active Australasian equity and property investments.
Public Trust chief executive designate Tim Sole says a tender for the work has been cancelled:"I’ve told them not to do it."
Sole says decisions about how funds are managed are better made after the PTO was restructured as a Crown company, expected to happen later this year.
He said is also conducting a strategic review to decide what work the PTO should do in future.
The review will look at whether it was cheaper to manage the investments in-house or to contract out the work.
"We can pay somebody else to do it. But the charges, even on a wholesale basis, can come out to be large numbers."
The PTO said in August it would outsource management of $23 million of its $980 million of funds under management.
Outsourcing of the investments was expected to be completed by November.
At the time, the PTO said the decision followed a review of investment activities conducted by Mercer Investment Consulting.
The move was expected to bring better returns for customers, it said.
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