DWS to take over Postbank’s retail funds
Deutsche Postbank is selling its asset management business to DWS Group. Both parties are subsidiaries of Deutsche Bank group, which is undergoing a restructuring aimed at cutting costs.
The sale will enable Postbank to focus on its core business of retail banking. Postbank will retain its own branding.
Michael Meyer, Board Member responsible for private client business in the Postbank Group: “With our strong partner DWS, we can provide our investment customers with outstanding offers. DWS’ market leadership and extensive fund management experience make it the ideal company to run Postbank’s high quality fund business.”
The deal, which will be completed in the third quarter of this year, involves 56 of Postbank’s retail funds, worth some €7.7bn in assets. Under the terms of the agreement, the names and the make-up of the funds will remain unchanged, the bank said. Speculation in the German media suggests this could still entail a number of fund mergers.
DWS last year underwent a strategic review, with parts of the business being offered for sale. However, a decision was subsequently made instead to restructure the business. DWS has about €140bn in assets under management.
Jürgen Fitschen, co-chief executive, Deutsche Bank told Frankfurter Allgemeine Zeitung, said they were looking at cutting costs: “We are already addressing this in the course of the Postbank integration. But also by establishing the asset and wealth management division.” Deutsche Bank failed to sell its asset management division, so is now merging it with the wealth management division.
The sale requires the approval of the Luxembourg supervisory authorities. The deal price was not disclosed.