LAST MONTH'S REMOVAL of Tom Hughes from the post of global head of asset management at Deutsche Asset Management caps a dreadful year for a business once regarded as a top player in the large and lucrative UK fund management market. Poor performance has led to an outflow of funds and loss of clients. The firm is now overhauling senior management and refining its entire business model in an attempt to overcome these setbacks.
In doing so, DeAM must face up to the familiar challenges besetting all its large rivals: how to attract, retain and motivate within a large organization individuals capable of producing high performance in the increasingly specialized mandates that clients now demand. Specialist boutiques are eating away at the large fund managers' business, increasing competition and reducing margins. DeAM has been late to respond to these challenges. If it cannot make a success of its latest revamp,...
