Deutsche Bank's retail asset manager in the US, DWS Investments, is undergoing a strategic review following the German bank's announcement that its global asset management division will be subject to a full review that could include the sale of parts of the business.
"The outcome of this review will be driven first and foremost by our fiduciary duty to, and the interests of, our clients," said Kevin Parker, global head of asset management and a member of the Deutsche Bank Group Executive Committee, who will oversee the review. "Our aim is to find the best strategic option to maximise the performance and potential of the Asset Management division."
A Deutsche Bank spokesperson told SRP that the review will not include DWS operations in Europe and Asia, as they have been already identified as a 'core part' of its retail offering in those markets, but that all options are being considered, including the sale of the DWS Investments Distributors in the US: "There are four business lines within Deutsche Bank's asset management division including alternative, institutional, insurance and retail," he said. "The only part of the retail arm being reviewed is the US operation."
The bank's spokesman dismissed any direct link to a class action lawsuit recently filed in New York against Deutsche Bank Securities, RBS Securities and several asset managers including JP Morgan Asset Management, Goldman Sachs, Citigroup and Merrill Lynch, by two US pension funds in relation to the bankruptcy of broker MF Global.
As reported, Michael Tari, a former director at Deutsche Asset Management in the US, was promoted to head of structured products at DWS Investments in Deutsche Bank's global retail asset management just a month ago.
Tari was appointed to replace the former head of structured products Americas at DWS Investments, Chris Warren, who has relocated to Singapore to spearhead the firm's structured products efforts in the Asian region.
Deutsche Bank's global asset management division, which has more than €515bn in assets under management, comprises institutional asset manager DB Advisors (€162bn), retail arm DWS (€157bn), alternative asset manager RREEF (€46bn) and Deutsche Insurance Asset Management (€150bn).