German Portfolios Cloned for U.S. Market

By Fraser, Katharine | American Banker, October 12, 1998 | Go to article overview

German Portfolios Cloned for U.S. Market


Fraser, Katharine, American Banker


As other European banks establish or buy U.S. investment managers, Deutsche Bank is relying on a German import to serve the American investor market.

All but two of the bank's 10 Deutsche Funds are clones of portfolios managed by DWS, a Frankfurt-based subsidiary of Deutsche Bank that has $68 billion of assets under management and two million shareholders. The U.S. funds, which mark their first anniversary Oct. 31, have $375 million of assets under management.

By repackaging its German portfolios for the U.S. market, Deutsche Bank wants to demonstrate "our management ability as opposed to our acquisition capability," said Brian Lee, president of Deutsche Fund Management Inc. Rather than buy a U.S. fund business or build one from scratch, Deutsche Bank decided to go with "what we know is good quality," he said.

The bank is also determined to bounce back from an earlier, failed attempt to crack the U.S. retail investment market. Nine index funds it launched in 1995 - each one linked to a country's stock market - were liquidated last year after sales failed to take off. The funds, dubbed CountryBaskets, ran into tough competition from Morgan Stanley, which had a similar product line.

To offer the new portfolios, Deutsche Fund Management, New York, uses a patented hub-and-spoke accounting system from Signature Financial Group in Boston. The arrangement allows "spoke" funds to share a "hub" investment manager but to be sold with different fee structures.

Deutsche Fund Management is marketing the funds to U.S. retail investors through brokers, financial planners, and registered advisers.

The sales effort got a big boost in September 1997 when the Securities and Exchange Commission gave Deutsche Fund Management a green light to publicize in the United States track records established in another country. The Deutsche unit was the first investment company to receive such permission.

Deutsche elected to cite past performance of parent hubs in two of the new funds: Deutsche European Mid-Cap Fund and German Equity Fund, which are clones of the DWS Provesta and Investa, respectively. Provesta has a five- year annual return rate of 18.67%; Investa, 19.54%.

Two other funds are managed in New York, the Top 50 U.S. fund and the U.S. money market fund. The Top 50 U.S. fund, managed by James E. Moltz, chief investment officer of Deutsche Morgan Grenfell in New York, is one of four funds in the family that invest in a maximum of 50 stocks. The other funds have a global, Asian, or European focus.

Rounding out the menu are global bond, Japanese equity, and European bond funds.

In addition to pitching the funds to brokers and other intermediaries, Deutsche Bank is marketing them to corporations that want to add international investments to their 401(k) retirement plans. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

German Portfolios Cloned for U.S. Market
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.