UK - Deutsche Asset Management is to divide its UK operations into seven "boutiques" as part of a radical overhaul of its business.
DeAM is repositioning itself in the face of competition from boutique investment managers for specialist mandates.
DeAM’s seven units cover UK equities, global equities, multi-asset or balanced, retail, property, fixed income and hedge funds.
Each business will have its own division head, who will oversee its day-to-day operations, clients and the profit and loss account.
DeAM believes the new structure – which is being overseen by UK chief executive Paul Berriman – will appeal to clients and fund managers that want boutique performance without the risk of moving to a small firm.
DeAM says it is also making a major effort to build up its balanced business as part of the shake-up.
Global chief economist Steven Bell said that while the move to specialist management had hit balanced managers, there were still huge amounts of money going into the asset class and that it was still appropriate for schemes.
Bell added: “I expect us to do traditional balanced business for an extended amount of time. The multi-asset division is the most rapidly growing part of our business and we are increasing the amount of resource we apply to it.”
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Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
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