How the mighty have fallen (or should it be how times have changed?)

Friday, August 5th 2005, 7:01PM

This week's news about BT Funds getting out of the retail end of the business is - I think - a sad day for the industry.

In the early days of funds management in this country BT stood head and shoulders above the pack and, as a competitor mentioned this week, oozed quality.

It was the Australian funds management company which had the courage to set up a strong New Zealand office and launch local dollar funds. It was the company which delivered investors good returns and also built its brand. Remember those BT television ads where people like Craig Stobo talked about investment. (One thing that doesn't change is that Craig still wears that blue tie with stars on it).

A lot has changed in recent years and now it has closed its retail funds to focus on wholesale and mezzanine products.

In Australia the debate: "Retail funds are dead" has been raging for a while. I would be fascinated to hear other people's views on this topic.

We'd like to bring you more thoughts from the company on this and will try to do so as it is a significant trend. However when we found out about it this week and went to the company we got passed onto the PR people at parent company Westpac (who it seems then told other media about it - so much for our scoop!)

I feel for some of the guys who we understand have had their jobs "dis-established". Many of them have been long-standing and loyal servants of the company.

Whether you like what BT has done or not, it is still a quality house and its products will be available on platforms. You do have to give them some credit for saying this is how we see the game now and we are going to change our business to fit.

It's interesting to ponder whether this would have happened under the former management or whether this is an idea/model imported from Australia?

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