March 2009

As we continue to invest into our newly merged business, we’d like to keep you updated on how we’re bringing together the BT and Advance multi-manager funds.

At the end of 2008, we appointed Patrick Farrell as the new Head of Investment Solutions for the BT Financial Group. In February 2009 we confirmed the new team structure for Investment Solutions, following a rigorous review of the St.George and BT Investment Solutions teams.

With the new team in place we’re now entering the next phase of integration: focusing on how we bring together the BT and Advance multi-manager funds. To do this, the new Investment Solutions team has conducted an extensive review of all our multi-manager investment options. The team has identified some strategic changes for the BT Multi-manager investment options, with the aim of maximising the potential performance of the Funds, while minimising the risks.

1. Adjusting the mix of asset classes within the funds.
2. Determining the investment managers who will help us manage the money and how they'll do it.

Patrick Farrell, Head of Investment Solutions, describes how his team will manage the changes. “Initially our focus is on adjusting the mix of asset classes. We’ll be aligning the Strategic Asset Allocation (SAA) of the BT Multi-manager investment options with the SAA of the Advance Multi-Blend funds by making the following changes to the BT Multi-manager investment options.”

• Introducing commodities as an asset class within Alternatives.
• Making specific asset allocation to Asian equities.
• Aligning the level of hedged international equities.
• Aligning the level of domestic fixed interest and cash.

Investment Solutions will implement these changes in stages, depending on their tactical market view over the short term. This will ensure we can take advantage of market conditions and manage any impact on the investment options.

We’re committed to keeping you informed throughout this process, so keep an eye out for further updates.

Do these changes affect you? 

T he BT Multi-manager Balanced fund is the default option for many of BT’s super funds. Many BT customers are invested in the BT Multi-manager funds through their super. You don’t have to do anything – we’re just letting you know about the