AMP Capital's head of equities, Guy Elliffe, and senior analyst Jonathan Davis will leave the business at the end of this month as the funds management company outsources its New Zealand equity management to a third party.

In a letter to investors, the company said the decision to outsource was not a reflection on the performance of the portfolios, but it had been reviewing how best to deliver New Zealand equity management capability.

"We have now completed the review and have decided the best option for our clients and our business is to outsource active New Zealand equity management to a third-party active equity manager," it said.

AMP Capital said it expected the transition to take place by March 31, and that its investment philosophy would not change.

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AMP Capital investment funds directly affected by the change are the NZ shares fund, the strategic NZ shares fund, the responsible investment leaders NZ shares fund and the income generator fund.

"The rationale for the decision has been driven by our views on the future growth, profitability and capacity of active equity management in New Zealand," the company's letter said.

"We also took into account the need to have a stable team delivering that capability.

"Guy Elliffe has made a significant contribution to the business in leading the New Zealand equity team over the past 10 years."

Davis joined the business last August.

Until the portfolios were transitioned, the New Zealand share portfolios would continue to be managed by portfolio managers and analysts from the AMP Capital group.

The co-head of Australian Fundamental Equities, Michael Price, has overall responsibility for the management of the New Zealand equity portfolios, the company said.

Since the departure of equities portfolio manager Douglas Lau last year, senior portfolio manager Mark Ferguson and other members of the broader AMP Capital listed property team have been managing the AMP Capital NZ listed property securities fund. This team will now permanently take over the active management of this portfolio.

Last November, the Guardians of New Zealand Superannuation, the manager of the NZ Superannuation Fund, terminated AMP Capital's New Zealand active equities mandate.

Funds management sources said at the time the most likely reason for the decision was staff turnover at AMP Capital.