Deutsche Bank to rebrand asset managing unit
Deutsche Bank plans to rebrand its asset-management arm as DWS, the name of its main retail brand, and put a structure in place that gives the group full control even after the unit’s planned stock market listing.
Earlier in 2017, Germany’s largest lender said it would list a minority stake in Deutsche Asset Management, which sources say could achieve a total valuation of about €8bn, as part of a broader overhaul following lawsuits and trading scandals.
On Tuesday, the bank said the asset-management unit would assume the legal structure of a partnership limited by shares, or KGaA, during the first quarter of 2018.
That structure ensures Deutsche Bank can retain control of the unit even if its shareholding falls below the 75% needed to dominate normal German stock corporations, possibly as part of a merger of the unit with a peer.
However, in the event Deutsche’s holding falls below a certain — so far undisclosed — threshold, the unit would lose the KGaA and become a normal stock corporation, or AG.
Typically, such a threshold would be 50%. Deutsche Bank board member Karl von Rohr is poised to become chairman of the unit, while its 12-member supervisory board will include another one or two Deutsche Bank representatives, four labour representatives and five or six independent directors. “We want to unlock the full potential of Deutsche AM to facilitate growth,” unit head Nicolas Moreau said.
The listing will give the unit the ability to attract and retain talent by incentivising staff with bonus shares, although it is not targeting overall pay increases. It will also enable the unit to use its shares to fund acquisitions.
The business is looking for ways to strengthen its alternative product offerings, especially in areas such as structured credit and real estate asset management, bolster its distribution network and expand in countries such as Japan, Korea and Singapore.
Its management is, however, focused on smaller deals.
“I will not go around the world with my cheque book. We will probably not do large transformational deals, we will do add-ons,” Moreau said.
In China, where the unit holds a 30% stake in Beijingbased Harvest Fund Management, it is aiming to raise money for investments in Europe or the US, but not in China.
In the US, Moreau has abandoned a previous strategy of offering a broad product range and wants to focus on areas such as alternative investments, fixed income and real assets.
THE BUSINESS IS LOOKING FOR WAYS TO STRENGTHEN ITS ALTERNATIVE PRODUCT OFFERINGS