Wellington, Nov 17 NZPA - Funds manager Alliance Bernstein, which manages $4 billion in New Zealand client funds, is closing its operations based in this country and will service local clients out of Sydney and Melbourne.

Alliance Bernstein's Australian managing director Michael Bargholz yesterday confirmed the firm's Wellington office, where most of its dozen or so local staff are based, would be closed, The New Zealand Herald reported today.

But Mr Bargholz was adamant that "we are not leaving New Zealand".

After a review of New Zealand operations and consultation with staff, the firm had decided to run a combined Australasian equities operation based in Sydney and a combined fixed-interest team based in Melbourne, Mr Bargholz said.

Alliance Bernstein is half-owned by takeover target Axa Asia Pacific.