The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

DeAM seeks cure for asset management ills

Asset managers' clients are increasingly demanding specialist input to mandates. It's a demand best met by boutiques or big firms that have set up boutique-like teams. Deutsche Asset Management has been tardy in responding to these pressures. It is now changing its style, but has it left it too late?

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, Deutsche Bank might begin to wonder whether UK institutional asset management is a good business to continue in.

"Deutsche Bank chairman Josef Ackermann's track record shows that he is willing to sell of parts of the business," says a former insider. Last year Deutsche sold off its private equity portfolio, DB Capital Partners, to its management, and sold its global passive business to Northern Trust.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree