WestpacTrust sticks with ING

In a somewhat surprising move WestpacTrust has decided to continue to outsource management of its managed funds business to ING, even through that company has formed a joint venture with its rivals.

Earlier this year ING announced it was forming a joint venture with ANZ Bank for its funds management business in Australia and New Zealand. This led to speculation about the future of WestpacTrust's outsourcing arrangement. Under the deal, WestpacTrust uses ING to look after all its funds with the exception of its highly popular, and rapidly growing Home Loan Trust.

WestpacTrust says it plans to keep using ING.

"After some consideration WestpacTrust have decided to continue their strategic alliance with ING," the bank says. "

What's more the bank is adopting the structure ING has recently implemented for its international equities fund.

"As well as continuing our joint venture from June 30 2002, WestpacTrust will be moving from having one fund manager selecting international shares to three fund managers," the bank says.

Previously ING solely used growth manager Fiduciary Trust Company International, but moved to a more multi-manager style earlier this year.

WestpacTrust says it will use the same three managers ING uses, plus it will have about one quarter of the fund invested in an index fund.

It plans to use two growth managers, Fiduciary (22%), and Massachusetts Financial Services Company (40%) and one value manager, Oppenheimer Capital (13%).

This change ends speculation WestpacTrust might have shifted its money to Rothschild Australia Asset Management which it bought on June 1 for A$323 million.

As part of that deal Rothschild had to find a new name. The company announced on Tuesday that it will be changing its name to Sagitta Wealth Management Limited.

As part of a transitional process, the current RAAM products will be branded Sagitta-Rothschild until the first quarter of 2003. Westpac products will continue to be branded as Westpac.

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