NSW govt merges fund management

The NSW government is merging the fund management activities of state financial assets worth $65 billion within the NSW Treasury Corporation.

NSW Treasurer Mike Baird and Minister for Finance and Services Andrew Constance announced the move on Tuesday, saying it would create a top 10 Australian investment manager.

The initiative to consolidate the funds involves the NSW Treasury Corporation (TCorp), the Safety, Return to Work and Support Division (SRWSD) and the SAS Trustee Corporation (STC).

The ministers said responsibility for the investment objectives, risk management and asset allocation of the funds controlled by SRWSD, STC and TCorp will remain with each of the separate entities and their boards.

"Today's announcement provides a great opportunity for NSW to harmonise its funds management arrangements, by leveraging the substantial capabilities that exist across the three agencies," Mr Baird said.

He said the streamlined approach was expected to deliver long-term financial and non-financial benefits to the three entities' stakeholders.

A spokeswoman for Mr Baird said the change was not expected to result in any staff cuts.