DeAM’s centre of gravity shifting toward Frankfurt

Further proof of the upgrading of Frankfurt as the main centre of influence within Deutsche Bank’s investment subsidiaries has come with the elevation of Axel Benkner to the position of global head of retail for Deutsche Asset Management (DeAM).

The move is something of a coup for the outspoken Mr Benkner whose profile has been steadily rising following his appointment as chairman of the BVI, the association representing German fund houses. Under Mr Benkner, the BVI has responded to an agressive campaign from structured product providers with a robust push of its own, defending actively managed mutual fund products.

Previously, he was head of DeAM for Germany, and head of the DWS pan-European and local funds business. He gained much respect internally for tricky negotiations with Deutsche Bank’s Private & Business Clients division, which began to sell funds externally managed by Fidelity and Invesco in 2002.

Mr Benkner said at the time that sales of DWS products through Deutsche branches had all but dried up, and he would be concentrating on selling mutual funds through independent advisers and platforms in Germany. Rival managers, said Mr Benkner, had “gained a position in Deutsche’s client base”.

But the local difficulties were eventually ironed out. Following Deutsche’s high-profile and sometimes controversial negotiations with eight external fund houses as preferred providers in 2003, DWS was added to the list at the 11th hour, following concerted pressure from Mr Benkner. Now his top-performing DWS funds are once again the best-selling products at Deutsche Bank branch level.

The rolling out of this funds selection service in Spain and Belgium has given Mr Benkner’s operation access to a broader European clientele.

Mr Benkner’s changed role means he now has responsibility for an extra $107bn (e82bn) managed by sister company Scudder Investments for US retail clients, in addition to the e146bn handled by DWS. The move was described as a “step-by-step evolution” by a DWS spokesman in Frankfurt.

Mr Benkner’s loyal German lieutenant, Axel Schwarzer, formerly head of European distribution at DWS, where his sales began to outstrip those of UBS in 2003, has been installed as head of Scudder in New York.

DeAM, plagued by mandate losses in the UK, recently won e25bn in insurance company assets from Zurich’s German operation, with DWS strategists believed to have had some influence.

“Legally DeAM is totally separate from DWS, but we are working in the same building and there is good co-operation between us and asset management,” said the Frankfurt spokesman.

Benkner: responsible for extra $107bn