AllianceBernstein to close NZ base, run Kiwi capital markets from Australia

Tuesday 17th November 2009

AllianceBernstein, which manages $4 billion in New Zealand investments, will close its local office and plans to manage the funds from Australia as a global outflow of funds prompts the firm to trim its headcount.

The Wellington-based team, headed by Andrew Bascand, is part of a 50:50 partnership with Axa Asia Pacific. During 10 years under the AllianceBernstein name, its 12 person team has had higher-than-average market returns on its investment portfolio of 7.8% a year.

AllianceBernstein has reduced its global headcount by 20% over the past year, and suffered a US$13 billion outflow of investor funds during the September quarter. Its New Zealand operation is expected to shut shop in January, with a combined Australasian equity and fixed interest businesses on this side of the Tasman to be run out of Sydney and Melbourne respectively.

“It’s a real shame,” said investment funds manager and sometimes competitor Carmel Fisher, managing director of Fisher Funds. “They’re big in the New Zealand market. But it is clearly a case where New Zealand is considered a marginal operation that it is considered can be run and managed from Australia.”

She said AllianceBernstein was often on the other side of Fisher Fund deals, and that this country’s capital markets will lose by not having them investing from a New Zealand base. The team is “great performers who have added wealth to New Zealanders.”

Andrew Bascand and AllianceBernstein’s Australasian managing director Michael Bargholz weren’t immediately available to comment, with the same recorded voice encouraging callers to leave a message on their phone numbers.

Bargholz told the NZ Herald that after a "comprehensive review of New Zealand operations and consultation with staff" the firm had decided to run a combined Australasian equities operation based in Sydney and a combined fixed-interest team based in Melbourne.

Client servicing for New Zealand institutional clients with individuallymanaged accounts would be conducted out of Australia and the Wellington office, where most of its dozen or so local staff are based, would be closed, he said.

Businesswire.co.nz

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