THE transition to the Federal Government’s Managed Investment Act will hurt trustees says Perpetual Trustees managing director Graham Bradley.
Mr Bradley said Perpetual was predicting a drop in profits of $25 million when the Act bites.
“We won’t feel the full impact until 2001 to 2003,” he said.
The Managed Investment Act has taken away the need for managed funds to appoint trustees to look after unit holders' interests.
While it is hard on trustees, the Act means savings for fund managers.
Mr Bradley said Perpetual was hoping to pick up outsourced back office administration services.
“We have a technical alliance with DST International,” he said.
“We have the opportunity to become the leading independent back office administration service provider to the financial management industry.”
Perpetual Funds Management, Perpetual’s managed investment arm, is the second largest retail funds manager in Australia.
The company recently formed a strategic alliance with Fidelity Investments. It is only the second time Fidelity has allowed its name to be linked with a company it does not own.
Mr Bradley said Perpetual had a 60 per cent interest in Wilson-Dilworth, a strong brand in Victoria.
Perpetual chairman John Lamble said the company had recently bought Coopers & Lybrands share registry service.
“We’re trying to grow profits while keeping share numbers the same,” Mr Lamble said.
