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ANZ To Grow Funds Mgmt With Strategic Partner

Document date:  Tue 06 Mar 2001
Published:  Tue 06 Mar 2001 09:47:29
Document No:  174011
Document part:  A
Market Flag:  Y
Classification:  Progress Report - Other


HOMEX - Melbourne                                                     


ANZ today announced it would accelerate plans to develop funds
management as a high growth business by joint venturing its domestic
and international funds management manufacturing capability with a
major global fund manager.

The process of selecting a joint venture partner is expected to be
completed during the second half of 2001. ANZ will retain and
continue to build its capability to leverage its four million strong
customer base in Australia and New Zealand through its six customer
businesses, particularly Wealth Management.

The decision to seek a global partner for its funds management
business is part of ANZ's strategy to create a portfolio of growth
businesses by specialising in segments where ANZ has leading
capabilities and can compete long term.

In the meantime, ANZ will outsource its Australian equities
manufacturing to Allianz Asset Management, one of the world's leading
fund managers. As part of the arrangement, ANZ's Australian equities
team will join Allianz Asset Management, allowing ANZ to continue to
offer its customers the investment process and team which has
produced returns among the best in the Australian market.

As part of the move to develop a new strategic direction for funds
management, the Funds Management and Insurance business headed by Mr
Bruce Bonyhady will report to Mr Elmer Funke Kupper, Group Managing
Director Strategy and International.

ANZ Chief Executive Officer Mr John McFarlane said the forces of
globalisation were already evident in the Australian funds management
industry with the increasing dominance of international fund

"While there has been a trend towards developing scale through
acquisition in the domestic funds management market, we do not
believe vertically integrated funds management models are the only
paradigm for growth and delivering value to shareholders," Mr
McFarlane said.

"Funds management is an important growth business which can realise
its full value by partnering with a global organisation and fully
leveraging the strength of our customer businesses, particularly
Wealth Management," he said.

ANZ Managing Director Funds Management and Insurance Mr Bruce
Bonyhady said ANZ's strategy to leverage its strength in distribution
and grow retail inflows through its customer businesses was already
gaining traction, with ANZ being ranked number six in retail inflows
in the December quarter(1).

"To continue this momentum we will be launching a major marketing
campaign in April to strengthen our position as a leading funds
manager," Mr Bonyhady said.

"Our decision to work with Allianz as an interim step acknowledges
their strength as a global player and provides continuity for
customers and staff while we identify the most suitable strategic

"Winning in funds management in the long term however requires ANZ to
offer a much wider choice of asset classes to our customers at lower
cost through a strategic joint venture with a leading global fund
manager," Mr Bonyhady said.

For media enquiries, please contact:

Paul Edwards 
Tel 03-9273 6955 or 0409-655550

(1) Source: ASSIRT Research Bulletin, 16 February 2001