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Deutsche Bank rebrands asset management unit

Deutsche Asset Management will rebrand to DWS and change its corporate structure to get closer control of the firm.

Earlier this year Deutsche Bank said it would sell a minority stake in Deutsche Asset Management following a broader overhaul caused by costly lawsuits and trading scandals, Reuters reports.

The bank said that its asset management unit would assume the legal structure of a partnership limited by shares, called KGaA, during the first quarter of next year.

Under German law, external investors in a KGaA have less say than in a normal listed company.

The move assures that if shareholding in the unit falls below 75 per cent, the bank can retain its control. However if shareholding falls below another level, which is so far undisclosed, the unit will remain a normal stock corporation and lose the KGaA status.

Deutsche AM head Nicolas Moreau says: “We want to unlock the full potential of Deutsche AM to facilitate growth.”

The unit posted 5 per cent outflows last year as investors began to shun the firm for fears of Deutsche Bank’s legal disputes.

Deutsche AM currently offers 600 investment funds and is targeting management fee margins of more than 30 basis points, an adjusted cost-income-ratio of less than 65 percent and a dividend payout ratio of 65-75 percent.

In the first nine months of the year, the business saw a management fee margin of 32 basis points, while assets under management increased by 1 per cent and currently stand at around £617bn globally.

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  1. But it did that years ago. DWS has been used before. (It stands for Die Wertspapierspezialisten – The Securities Specialists). Not sure how appropriate that is for non German speaking markets.

    I wonder why they a playing the hokey-kokey with the name. (in/out – in/out)

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