'Mr BT' quits fund manager

By PAUL PANCKHURST

The man identified in New Zealand as "Mr BT", Craig Stobo, is walking away from $3.4 billion fund manager BT Funds Management.

News yesterday of Stobo's resignation as chief executive came three weeks after chief investment officer Andrew South announced his exit to join Brook Asset Management.

An equity analyst, Greg Fraser, also left this year.

Rival fund managers will try to exploit the instability by snaffling clients.

Stobo could not be reached for comment yesterday but website Good Returns reported he had resigned because, after 14 years, it was "time for a change".

Westpac bought BT in 2002.

BT's $3.4 billion of funds under management includes $1 billion of unit trusts and retirement plan portfolios managed for Westpac.

Westpac media relations manager Paul Gregory said the future of the operation was not in doubt and acting chief executive Mike Newton "isn't a minor figure in the industry".

Newton, a former BT chief operating officer, is back on a short-term contract.

At managed fund research house FundSource, business manager Tim Anderson said staff stability was very important for fund managers but the significance of the changes was not yet clear.

BT is in the top five fund managers by size in New Zealand.

Good Returns reported Stobo was not leaving to take up another job, but "had some other ideas".