Deutsche Bank and M&G Investments have partnered for the launch a multi-asset fund of funds, the M&G (Lux) Multi Asset 2023 fund, that will be exclusively distributed towards clients of Deutsche Bank España until 12 December 2017.
This follows the exclusive launches of two other flexible funds from Nordea Asset Management and Flossbach von Storch earlier this year for Deutsche Bank’s Spanish clients and in which assets totalling €286m were recorded as of 31 July 2017.
The M&G (Lux) Multi Asset 2023 fund, managed by Craig Moran, seeks to deliver net annual returns of 2.5%. It will be mainly invested in fixed income funds while around 35% of its net assets will be exposed to equity markets and 20% to other asset classes.
In addition, at least 60% of the fund will be invested in euro-denominated securities to reduce the currency risk and a volatility level of circa 8% is targeted.
Luis Martín-Jadraque, investment director at Deutsche Bank España, said: “Thanks to the agreement reached with M&G, one of the leading managers in Europe and the United Kingdom, we ratify our commitment to open architecture and our clients, at their disposal the best funds that the market offers today, regardless of which manager offers them. ”
“This launch addresses the demand that we have detected for a moderate profile investor seeking annual returns, with average volatility and controlling especially their risk exposure. With this M&G fund, we consider that we have found a solution meeting these requirements, “added Martin-Jadraque.
Craig Moran, portfolio manager of the fund, commented: “Avoiding being a victim of one’s emotions when investing is a complex task that requires a lot of discipline and a great deal of analysis. At M&G, we have been successfully applying behavioral finance for over 15 years, identifying episodes where the market operates in an irrational way with the objective of achieving benefits for our investors.”
Deutsche Bank España is committed to open architecture since 2001. It has €5.1bn of assets under management, of which 51% are managed under the bank’s own strategies and 49% in third party funds.
Deutsche Bank España has seen its AuM increase by 70% over the last three years. Inflows have been up 3% for the first half of 2017 compared to the end of 2016.