MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
|
|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, March 30, 2001 Ivy Prunes Jobs Ivy Funds is taking several steps to reduce operating costs. The Boca Raton, Florida-based firm will be converting its entire transfer agency function to PFPC. Furthermore, Ivy has made additional broad-based job cuts. Between the two measures, a total of 62 employees are affected, amounting to approximately 40 percent of the workforce. According to Stephen Barrett, executive vice president and director of marketing at Ivy, the decision to outsource TA came both from changes in the industry and the the decision to reduce expenses. "[Outsourcing] will save our firm money and save shareholders probably a third of fund expenses," explained Barrett. He added that industry changes have produced inefficiencies in running TA internally, saying, "Given the changes in transfer agency services over the years, particularly with broker-dealers using omnibus accounts, it's more the reality that the business has shifted." According to Barrett, the move, slated for the end of June, will directly impact just under 30 positions. The firm expects the transition to be smooth because it already uses PFPCs TA system. Ivy has also cut back jobs in every area except investment management, many of which are positions related to TA. Affected areas include sales, marketing, IT, and general support staff. "We've looked at our entire operation and have made some additional cutbacks," said Barrett. "A big part of those were the result of not having to support an internal transfer agency." The move to PFPC has eliminated the need for a number of IT positions as well as support positions. However, the broad-based cuts have also reached into the marketing and sales departments. The job eliminations not directly related to TA are effective immediately. Clients and shareholders were informed of the series of changes on Tuesday. Barrett was unable to estimate either how much the layoffs will cost Ivy or what the savings will amount to. While he also did not specify details of the firm's severance package, he did say, "I suspect that we were one of the most generous firms." Printed from: MFWire.com/story.asp?s=26665 Copyright 2001, InvestmentWires, Inc. All Rights Reserved |