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Deutsche Rebrands ETF Business

Written by Rebecca Hampson

February 21, 2013 15:24 (CET)

Deutsche Bank’s exchange-traded fund arm, db X-trackers, will become Deutsche Asset & Wealth Management, as the group seeks to regroup its brands following a sharp drop in market share.

Deutsche restructured its business model in September last year moving the ETF business into the asset management arm. The shake-up also saw its ETF strategist depart the bank.

While the overall business will have a new name, products under the db X-tracker moniker will be maintained.

A statement from the bank said that on a product level, existing names will be maintained: including DWS, RREEF, and db X-trackers (for exchange traded funds (ETFs)). Business brands will be superseded by Deutsche Asset & Wealth Management, with some exceptions.

“Deutsche Asset & Wealth Management, the dominant ‘superbrand’ for the combined group, will give the division cohesion, while capitalising on the value already built up in the former businesses and product brands,” according to the statement.

Deutsche Bank has lost significant European market share in the last two years to Europe’s largest ETF issuer by assets under management, iShares and, to a lesser extent, to other European ETF issuers.

Synthetic (derivatives-based) ETFs of the type popularised by Deutsche and other European investment banks have recently lost ground to ETF providers offering the traditional route of physical index replication.

Europe’s ETF industry has come under fierce regulatory scrutiny in the last two years, resulting in a slowdown in the market’s previously heady growth rate, although ETFs continue to gain market share at the expense of other mutual funds.

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