Martini leads the way to perfect mix

The lead in product and group selection always follows the views of Klaus Martini, CIO of Deutsche Bank’s Private Wealth Management business line. “Klaus and his teams bring in themes with investment strengths, but our responsibility is to translate this economic, sectoral, sometimes very abstract view into solutions,” says Dominic Blum, head of products for Deutshce Bank’s private and business clients branch banking division. “When Klaus comes through the door, he does not necessarily suggest we invest clients’ money in Bric [Brazil, Russia, India and China] economies. He says the oil price is high, and links this with what he has seen in the US and Far East. We then translate this into a theme like ‘new energy’, go back and ask him if he would recommend something like that,” says Mr Blum, referring to a Merrill Lynch commodities fund based around this theme. Talks about the specific nature of a relationship with a manufacturer are then handled by Mr Blum and his team. He says a strategic partner needs to recognise the costs of such a relationship. “They have to invest in distribution capacity in terms of readable retail presentations, frequent talks to our research department, and team talks with us about the future and what we can do with them,” says Mr Blum. “We are talking with everybody about trailer fees, but our costs are smaller than doing it on their own. We had talks with JPMorgan; they were aware that we are a big distributor, and they are great asset managers.” There is clearly a marketing price for managers to pay in these negotiations, says Mr Blum, who believes manufacturers must be “willing to take a deep breath in order to develop sustainable assets.” But he insists that “there is no entrance fee. We are proud to have JPMorgan, and they are proud to have us. It’s not a question of money.” Although there are now nine global partnerships – Alliance Capital, Fidelity, Franklin Templeton, Invesco, JPMorgan, Merrill Lynch, Morgan Stanley, Schroders and UBS, plus an unbreakable internal bond with DWS – relationships and products can vary depending on the jurisdiction. In Belgium, for instance, funds of local groups such as ING and Fortis must also be offered for a bank to succeed, says Mr Blum.

Martini: provides investment themes