BT chief to quit on Monday

Dirk Morris will now leave the funds management group next Monday, three months earlier than planned, in a move that increases speculation about why he resigned.

His job will be filled temporarily by chairman Brian Scullin, who will act in an executive role while the company, which is owned 60 per cent by Westpac, scours the world for a successor.

BT Investment Management gave no reasons for the decision to bring forward Mr Morris' departure. The company declined to comment and Mr Scullin was not available for an interview.

People close to the fund said that, like most large funds, BT Investment Management's Australian equities fund was starting to face capacity constraints that could limit further growth. The investments funds industry was facing significant headwinds, with the fast growth in passive-style exchange traded funds.

Like most fund managers, BT Investment Managers has been hit by the global financial meltdown. Funds under management have fallen by just over 21 per cent in the past year to about $31.5 billion as share prices and asset values have slumped.

The timing of Mr Morris' resignation was considered odd by market watchers given that it was announced just before the end-of-day deadline of 7.30pm for official statements to the ASX. It coincided with Mr Morris presenting his new strategic plan to BT Investment Management's board, during which it emerged he could not give a commitment to see it through over a three-to-five year period. -- With DANNY JOHN