2002 Media Releases

Deutsche Asset Management today confirmed the outsourcing of a proportion of funds it has managed for SAS Trustee Corporation (State Super) for the past five years is complete.

In 1997 Deutsche Asset Management became responsible for the investment management of a portion of the closed NSW State Superannuation Scheme’s assets following the sale by the NSW Government of Axiom Funds Management Corporation to Deutsche Bank. The Fund’s investment management became fully contestable on 1 July this year.

Deutsche Asset Management has been retained as one of State Super’s largest managers, responsible for more than 30 per cent of the Pooled Fund.

Regional CEO of Deutsche Asset Management, Brian Scullin said, “State Super remains our largest single client. We are very pleased with the outcome, and appreciate their vote of confidence. We continue, for example, to manage 100 percent of State Super’s portfolio allocation to real estate and private equity.”

Mr Scullin explained that for Deutsche it’s “business as usual”, with the organisation having planned for this time by diversifying its client base and building new businesses.

A key platform for business growth is Deutsche’s strategic relationship with Zurich Financial Services. In April this year, Deutsche Asset Management was contracted as the investment manager for Zurich’s investment mandates in Australia. The agreement involved around A$7 billion in funds coming under the investment direction of Deutsche.

“This has largely replaced the funds outflow from the State Super outsourcing, and provides an exciting avenue to boost funds flow. Not only has Zurich become a major client for us, they also play an important part in our retail growth plans, which to date have focused on master trusts and wrap platforms.”

Mr Scullin noted that when Deutsche Asset Management first entered into a contract with State Super in 1997, their portfolio represented around 90 percent of the organisation’s total funds under management.

“Today, we have more than 100 institutional clients, representation on 47 retail master trusts, and over 15,000 retail investors. Together, these clients make up around 75 percent of our current funds under management,” he said.

Interviews with Brian Scullin and further information:

Kristin Silva/Ainsley Gee
Deutsche Asset Management Corporate Communications
Tel: (02) 9249 9568 / (02) 9249 9904
0411 110 953 (Kristin)