ASIA/PACIFIC - Deutsche Asset Management (DeAM) funds under management are set to increase from A$140bn to A$170bn following the recent deal with Zurich Scudder (Zurich).
According to the firm, the agreement is particularly good for Deutsche's Korean growth aspirations, allowing the organisation to speed up plans for expansion in the country.
Earlier this week Deutsche Bank and Zurich Financial Services agreed that Deutsche would acquire 100% of US-based asset manager Zurich Scudder Investments for the equivalent of US$2.5bn. The agreement did not include Scudder's UK retail operation, Threadneedle Investments.
As part of the deal the bank also intends to transfer its 75.9% stake in the Versicherungsholding der Deutschen Bank (VHDB), and insurance activities in Italy, Spain and Portugal to Zurich. VHDB comprises Deutscher Herold Leben, Deutscher Herold Allgemeine, Bonnfinanz and Bonndata.
DeAM’s regional chief executive officer Brian Scullin said: [The agreement] enhances our US platform and further strengthens our position as the largest asset manager in the Asia Pacific.”
- In Australia, Deutsche remains the country's fourth largest asset manager, with funds under management increasing from A$37.4bn to A$45.9bn, mainly in wholesale mandates. The figure includes A$6.85bn from Zurich Scudder, which will come under management of the combined organisation once the deal is settled early next year.
- In Japan, DeAM remains the country's largest foreign fund manager, with assets under management increasing from A$97.4bn to A$117bn.
- In other key Asian countries, namely Singapore and Hong Kong, Deutsche's funds under management will increase from around A$5.4bn to A$6.7bn. Deutsche also has a marketing office in Taiwan.
In Asia, Deutsche will be the preferred supplier to ZFS in the management of its own institutional asset management activities and will be one of the preferred investment banks of Zurich for all investment banking activities.
Although the move is seen as bolstering domestic capabilities, Scullin acknowledged market concerns around issues facing the integration of the two businesses:
We appreciate that issues such as differing investment styles across countries, some competitive products and staff overlap are concerns which must be addressed as a matter of priority.
“We are determined to resolve these issues as quickly as possible, and integrate Scudder rapidly into our asset management business, he said.
Deutsche has already formed a regional integration team.Michael Monaghan, regional chief operating office of DeAM is heading the committee, with Anthony Moody, head of institutional business for Zurich Scudder, Asia Pacific, as deputy.
Zurich staff continue to work in their current positions until the agreement is finalised. The final merger of units is expected to occur in early 2002.
By Madhu Kalia
Professional Pensions is looking to update its list of pensions master trusts in the UK ahead of authorisation. Can you help?
RPMI Railpen is in the next step in the journey towards achieving cost disclosure. Victoria Bell tells Stephanie Baxter about taking part in the Cost Transparency Initiative's pilot phase
Interserve's numerous defined benefit (DB) schemes have retained a sponsor link after the company entered into administration and was sold.
Chris Hannon has been named chairman of the Railways Pensions Trustee Company after a unanimous vote of approval from its board last week.