BANK OF Ireland has abandoned plans to find a backer for its asset management arm, and intends to cut 30 staff from the division's 160-strong workforce.

Bank of Ireland Asset Management (BIAM) began reviewing its activities last March, and subsequentlty confirmed that this could lead to it seeking a strategic partner for the fund management business.

It emerged yesterday that the fund manager has now completed the review and it is understood that it will not be seeking a partner for the business.

The bank told BIAM staff yesterday that it intends redeploying 30 of them to other positions within the overall group.

The fund manager employs a total of 160 people. The move will not involve the loss of any jobs from Bank of Ireland.

BIAM was looking at the possibility of recruiting a partner to develop new investment products, but has decided it will not now go down that route.

It is understood that the fund manager's review is now completed.

Its larger rival, Pioneer Investments, recently poached BIAM executive, Dave Santry, from the company, where he was senior relationship manager for the Irish customer business.

Pioneer, which has €110 billion in assets under management, close to three times the figure for which BIAM is responsible, is seeking to develop its Irish business.

The National Treasury Management Agency recently hired it, along with a British and US fund manager, to handle a €600 million emerging markets fund.

BIAM suffered a series of blows in 2004 when it lost mandates from a number of large US public service pension funds following the departure of four senior executives to a rival. US public service pensions are amongst the largest clients for fund management services in the world.