Embattled fund manager Bank of Ireland Asset Management (BIAM) is on the brink of extinction in Australia after it suffered a series of blows to its funds under management.
The fund, which specialises in active international equities management, has lost almost $1 billion worth of mandates since June 30 this year.
BIAM Australia had $1.2 billion under management as of June 2007, but by November that figure had slipped to just $187 million.
Three of the fund's cornerstone investors have backed away from the Melbourne-based fund in the past five months.
Industry fund REST dumped a $345.7 million BIAM mandate in August, while Care Super dropped a $143 million mandate in September.
Asset consultant JANA Investment Consultants, which advises Care Super and REST, also terminated a $401 million mandate with BIAM.
It is thought the Tasmania-based Retirement Benefits Fund, which is also advised by JANA, has dropped a $160 million global equities mandate with BIAM, but this could not be confirmed by InvestorDaily.
"We had an issue with BIAM's long-term performance," Care Super chief executive Julie Lander said.
"It was reflective of the fact staff turnover was high and the difficulties it has had over the last 18 months. We felt there were better opportunities out there."
BIAM, which is part of Bank of Ireland Group, has been operating in Australia since 1996 when it won its first mandate with REST.
Since then its success has been varied.
It lost four key members of its investment team to Perpetual Investments in 2004 and has struggled to gain traction in the market since.
At its peak the firm had $4 billion under management in Australia, but since then its client base has dwindled.
The resignation of chief investment officer Paul Boyne in late 2006 was followed shortly after by the loss of one of the few remaining veterans of the firm in Australia, John Landau, who left to become head of Australia for Janus Capital Asia. He had been with BIAM since 1998.
Other notable departures from BIAM this year include Sam Sicilia, who left to join Russell as a consultant in Melbourne, and Peter Lambos, who joined BT Financial.
