Shares in BT Investment Management (BTIM) made a lacklustre start to life on the Australian Securities Exchange (ASX) trading at a modest premium to their issue price.
Shares in the spin-off of Westpac's funds management arm hit a high of $4.84 yesterday, just four cents higher than the issue price of $4.80.
They finished the day at $4.79.
The listed entity will be 60 per cent owned by Westpac, with the remainder split between Westpac shareholders, institutional investors and staff.
The initial public offering raised $247 million, of which $13.5 million will be used to fund equity grants to new employees.
At a time when more and more talented fund managers are leaving bigger institutions to form their own boutiques, BTIM's offer of equity is designed as an incentive for managers to stay.
"With BTIM employees having a direct stake in the continued success of the company, the board is confident there is a now a significant and rewarding alignment of interests between the investment professionals, their clients and shareholders," BTIM chairman Brian Scullin said.
Dirk Morris will be chief executive of BTIM, while BT Financial Group chief executive Rob Coombe is a non-executive director.
BTIM's debut comes just one day after Melbourne based fund manager Olympus Funds Management abandoned plans to list on the ASX citing volatile markets.
