Deutsche Asset & Wealth Management CIO View December 2015
The views that our Chief Investment Officer Stefan Kreuzkamp expresses in the December issue of the new CIO View carry a lot of weight: He and his colleagues at Deutsche Asset & Wealth Management manage client assets totaling 1.09 trillion euros (as of September 30, 2015).
His nine positions are:
• The U.S. Federal Reserve Board wants to end its ultra-expansionary monetary policy.
• Monetary policy in Japan and the Eurozone will remain accommodative. China follows suit.
• Inflation will pick up again in Europe in 2016.
• U.S. dollar to benefit from monetary-policy divergence.
• Return outlook for equities and bonds falls short of current year.
• High valuations could contribute to volatility in equity markets.
• Latin American stock exchanges remain weak.
• Real estate is still one of the most attractive asset classes.
• Asset allocation of our balanced model portfolio for clients based in Europe, Middle East and Africa (EMEA):
Fixed income: 46%, Equities: 43%, Alternatives: 10%, Commodities: 1%
Also in CIO View:
-Letter to investors by Stefan Kreuzkamp
-Focus: Are central-bank levers still working?
-The big picture: the first interview with Stefan Kreuzkamp
-Investment traffic lights: our tactical and strategic view on asset classes
-Asset-class perspectives by Joe Benevento and Joern Wasmund, Global Co-Heads of Fixed Income/Cash, and Henning Gebhardt, Global Head of Equities
-Portfolio: Long or short, Stéphane Junod? Interview with the regional Chief Investment Officer for Wealth Management in Europe, the Middle East and Africa
-Alternatives portfolio: Long or short, Mark G. Roberts? Interview with the Head of Real Estate Strategy and Research
With EUR 1.09 trillion of assets under management (as of September 30, 2015), Deutsche Asset & Wealth Management¹ is one of the world’s leading investment organizations. Deutsche Asset & Wealth Management offers individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices.
¹ Deutsche Asset & Wealth Management is the brand name of the Asset & Wealth Management division of the Deutsche Bank Group. The legal entities offering products or services under the Deutsche Asset & Wealth Management brand are listed in contracts, sales materials and other product information documents.
Deutsche Asset & Wealth Management launches USD corporate bond ETF
Deutsche Asset & Wealth Management launches an ETF that provides exposure to the US dollar-denominated liquid corporate bond market.
db x-trackers Barclays USD Corporate Bond UCITS ETF (DR)* tracks the Barclays USD Liquid Investment Grade Corporate Index. The index comprises almost 1,500 bonds2, over 80% of which have been issued by US-domiciled companies. The ETF has listed on the Deutsche Börse and will shortly list on the London Stock Exchange.
The average credit rating of bonds in the index is investment grade (i.e. at least Baa3 from Moody’s, BBB from Fitch Ratings, or BBB- from Standard & Poor’s), while the current index yield is 3.69%3.
“With yields on many short maturity major government bonds now in negative territory, which means investors are effectively paying to own these bonds, there is a demand for fixed income exposure that generates a reasonable yield. Our new US dollar corporate bond ETF helps meet that demand,” comments Erik Rotander, Head of the Nordics, Passive Investments.
The ETF is physically replicating and has an All-in Fee of 0.2% per annum.
By the end of August this year, fixed income ETFs globally had generated almost USD 52.8 billion in inflows year-to-date4.
Deutsche AWM has a large suite of fixed income ETFs, including the db x-trackers Barclays Global Aggregate Bond UCITS ETF**, which tracks the global market for government, governmental, supranational, corporate, asset-backed and mortgage-backed securities across the full spectrum of maturities and the investment-grade credit rating range. The ETF launched in March 2014 and has EUR 500 million in assets under management5.
1 Source: Deutsche AWM, September 29, 2015
2 Source: Barclays Bank plc, September 17, 2015
3 Source: Barclays Capital Indices, October 4, 2015
4 Source: ETFGI, September 8, 2015
5 Source: Deutsche AWM, September 29, 2015
* A sub-fund of Concept Funds Solutions plc.
** A sub-fund of db x-trackers and domiciled in Luxembourg.
Product Details
Name of ETF: db x-trackers Barclays USD Corporate Bond UCITS ETF (DR)
BBG Code: XDGU
ISIN: IE00BZ036H21
Fund Currency: USD
Listing Currency: USD
Annual All-in Fee: 0.20%
Physical/synthetic: Physical
UCITS compliant: Yes
Deutsche Asset & Wealth Management
With EUR 1.14 trillion of assets under management (as of June 30, 2015), Deutsche Asset & Wealth Management¹ is one of the world’s leading investment organizations. Deutsche Asset & Wealth Management offers individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices.
¹ Deutsche Asset & Wealth Management is the brand name of the Asset & Wealth Management division of the Deutsche Bank Group. The legal entities offering products or services under the Deutsche Asset & Wealth Management brand are listed in contracts, sales materials and other product information documents.
Investors should note that the db X-trackers UCITS ETFs1 are not capital protected or guaranteed and investors should be prepared and able to sustain losses of the capital invested up to a total loss.
Shares in db X-trackers UCITS ETFs which are purchased on the secondary market cannot usually be sold directly back to the relevant fund. Investors must purchase and redeem such shares on the secondary market with the assistance of an intermediary (e.g. a market maker or a stock broker) and may incur fees for doing so (as further described in the applicable prospectus). In addition, investors may pay more than the current net asset value of a share in a db X-trackers UCITS ETF when buying shares on the secondary market, and may receive less than the current net asset value when selling such shares on the secondary market.
Investments in funds involve numerous risks including, among others, general market risks, credit risks, foreign exchange risks, interest rate risks and liquidity risks. The value of an investment in a db X-trackers UCITS ETF may go down as well as up and investors may not get back the full amount of their original investment.
Important Notice
This press release has been issued and approved by Deutsche Bank AG, London Branch and has been prepared solely for information purposes and, offer or a recommendation to enter into any transaction.
Deutsche Bank AG is authorised under German Banking Law (competent authority: European Central Bank) and, in the United Kingdom, by the Prudential Regulation Authority. It is subject to supervision by the European Central Bank and by BaFin, Germany’s Federal Financial Supervisory Authority, and is subject to limited regulation in the United Kingdom by the Prudential Regulation Authority and Financial Conduct Authority. Deutsche Bank AG is a joint stock corporation with limited liability incorporated in the Federal Republic of Germany, Local Court of Frankfurt am Main, HRB No. 30 000; Branch Registration in England and Wales BR000005 and Registered Address: Winchester House, 1 Great Winchester Street, London EC2N 2DB.
Please refer to the relevant fund’s full prospectus and the latest version of the Key Investor Information Document for more information on db X-trackers UCITS ETFs. These documents are available free of charge from Deutsche Bank AG, London Branch and constitute the only binding basis for purchase of shares in the ETFs. As explained in the relevant offering documents, distribution of ETFs is subject to restrictions in certain jurisdictions. The ETFs described herein may neither be offered for sale nor sold in the USA, in Canada, in Japan to US Persons or to persons residing in the USA.
The indices mentioned herein are registered trademarks of their respective licensors. The ETFs described in this document are not sponsored, endorsed, sold or promoted in any way by the Licensors of the indices mentioned herein (with the exception of Deutsche Bank AG). The Licensors of the indices mentioned here (including Deutsche Bank AG) make no representations or warranties concerning the results obtained by using their indices and/or index levels or in any other respect, on any given day. The index sponsors are not liable for errors in their indices and are not obliged to provide information of such errors.
Deutsche Asset & Wealth Management har nyligen meddelat att bolaget listar ett antal nya börshandlade fonder på Stockholmsbörsen, bland annat Sveriges billigaste globalfond, db x-trackers MSCI World Index UCITS ETF, med en avgift på 0,19 procent. Samtidigt avnoterar Deutsche Asset & Wealth Management hävstångsfonderna som tidigare varit listade på Nasdaq OMX och ett par av de mer nischade ETFerna med fokus på tillväxtmarknader på grund av ett lågt intresse. Deutsche kommer inte lägga ned dessa börshandlade fonder, men de försvinner från den svenska marknaden och bör kunna gå att handlas i till exempel Tyskland på XETRA.
Efter ommöbleringen har Deutsche 21 börshandlade fonder på Nasdaq Stockholm, och de börshandlade fonder som nyligen listades får snart sällskap av ytterligare ett par ETFer.
Deutsche Bank listar fyra nya börshandlade fonder i Sverige
Deutsche Bank listar fyra nya börshandlade fonder i Sverige Deutsche Asset & Wealth Management (Deutsche AWM) förstärker sitt utbud av börshandlade fonder i Sverige. Deutsche Asset & Wealth Management har fått godkänt att lansera ytterligare ett antal nya ETFer på Nasdaq OMX Stockholm.
Nasdaq OMX Stockholm har godkänt listningen av fyra av Deutsche Asset & Wealth Management (Deutsche AWM), ofta benämnda Deutsche Bank, börshandlade fonder. De nya ETFerna beräknas listas den 23 september. De instrument som kommer att listas är
DBX GLBL DIV 100 dbx Stoxx Global Sel. Div. 100 UCITS ETF
DBX EU SMALL CAP dbx MSCI Europe Small Cap UCITS ETF (DR)
DBX EUR DIV 30 dbx Eurostoxx Select Div. 30 UCITS ETF
DBX RUSSIA CAP dbx MSCI Russia Capped UCITS ETF
Intressant att notera är att medan Alpcot tar bort sin notering för sin börshandlade fond som replikerar den ryska aktiemarknaden väljer Deutsche Bank att lista en sådan på Nasdaq OMX Stockholm.
Deutsche Asset & Wealth Management alters ETF product line and enhances Swedish offering
Deutsche Asset & Wealth Management alters ETF product line and enhances Swedish offering Deutsche Asset & Wealth Management (Deutsche AWM) is altering its exchange-traded fund (ETF) line up on the Nasdaq Stockholm by de-listing certain funds while rolling out a suite of new offerings.
Ten db X-trackers ETFs will be de-listed from the Stockholm market while seven new listings will take place with a view to offering investors a broad range of international equity exposures, spanning both developed and emerging equity markets, as well as single countries. Dividend and small cap strategies for selected developed markets will also be offered. Additional ETFs from Deutsche AWMs Core-ETFs range will also be added to the product suite.
Those ETFs that are de-listing in Stockholm will continue to be listed on exchanges elsewhere in Europe. Following the changes, Deutsche AWM will continue to be the biggest ETF manager locally based on number of listed ETFs.
“We first listed ETFs on the Nasdaq OMX in 2010 and our continuing commitment to the local market is reflected in the enhanced product line-up. Our strategy is to deliver relevant international equity exposure locally, so investors in the region can use our ETFs as building blocks for cost-effective and diversified portfolios,” said Erik Rotander, Head of Nordics, Passive Investments, at Deutsche AWM.
Deutsche AWM’s European-listed db X-trackers ETFs have generated almost EUR 8 billion of inflows year-to-date (Source: Deutsche AWM, 13 August, 2015). This follows the successful move to become one of the Europe’s leading providers of physical ETFs following a programme of switching replication strategy on some of its largest funds by assets under management.
A table of db X-trackers ETFs that will constitute the new Nasdaq Stockholm-listed product suite – including ETFs due to list – is below, as well as a list of those ETFs de-listing. A Q&A on the alteration of the product line-up is available at www.etf.deutscheawm.com
For further information please contact:
John Ferry
Deutsche Asset & Wealth Management
New product line-up on the Nasdaq Stockholm
Green products remain listed. Blue products are additional listings
De-listings on the Nasdaq Stockholm (And exchanges where the ETFs remain listed)
Deutsche Asset & Wealth Management With EUR 1.14 trillion of assets under management (as of June 30, 2015), Deutsche Asset & Wealth Management¹ is one of the world’s leading investment organizations. Deutsche Asset & Wealth Management offers individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices.
Deutsche Asset & Wealth Management is the brand name of the Asset & Wealth Management division of the Deutsche Bank Group. The legal entities offering products or services under the Deutsche Asset & Wealth Management brand are listed in contracts, sales materials and other product information documents. www.db.com
Key risks
Investors should note that the db X-trackers UCITS ETFs1 are not capital protected or guaranteed and investors should be prepared and able to sustain losses of the capital invested up to a total loss.
Shares in db X-trackers UCITS ETFs which are purchased on the secondary market cannot usually be sold directly back to the relevant fund. Investors must purchase and redeem such shares on the secondary market with the assistance of an intermediary (e.g. a market maker or a stock broker) and may incur fees for doing so (as further described in the applicable prospectus). In addition, investors may pay more than the current net asset value of a share in a db X-trackers UCITS ETF when buying shares on the secondary market, and may receive less than the current net asset value when selling such shares on the secondary market.
Investments in funds involve numerous risks including, among others, general market risks, credit risks, foreign exchange risks, interest rate risks and liquidity risks. The value of an investment in a db X-trackers UCITS ETF may go down as well as up and investors may not get back the full amount of their original investment.
Important Notice
This press release has been issued and approved by Deutsche Bank AG, London Branch and has been prepared solely for information purposes and, offer or a recommendation to enter into any transaction.
Deutsche Bank AG is authorised under German Banking Law (competent authority: European Central Bank) and, in the United Kingdom, by the Prudential Regulation Authority. It is subject to supervision by the European Central Bank and by BaFin, Germany’s Federal Financial Supervisory Authority, and is subject to limited regulation in the United Kingdom by the Prudential Regulation Authority and Financial Conduct Authority. Deutsche Bank AG is a joint stock corporation with limited liability incorporated in the Federal Republic of Germany, Local Court of Frankfurt am Main, HRB No. 30 000; Branch Registration in England and Wales BR000005 and Registered Address: Winchester House, 1 Great Winchester Street, London EC2N 2DB.
Please refer to the relevant fund’s full prospectus and the latest version of the Key Investor Information Document for more information on db X-trackers UCITS ETFs. These documents are available free of charge from Deutsche Bank AG, London Branch and constitute the only binding basis for purchase of shares in the ETFs. As explained in the relevant offering documents, distribution of ETFs is subject to restrictions in certain jurisdictions. The ETFs described herein may neither be offered for sale nor sold in the USA, in Canada, in Japan to US Persons or to persons residing in the USA.
The indices mentioned herein are registered trademarks of their respective licensors. The ETFs described in this document are not sponsored, endorsed, sold or promoted in any way by the Licensors of the indices mentioned herein (with the exception of Deutsche Bank AG). The Licensors of the indices mentioned here (including Deutsche Bank AG) make no representations or warranties concerning the results obtained by using their indices and/or index levels or in any other respect, on any given day. The index sponsors are not liable for errors in their indices and are not obliged to provide information of such errors.
All-in Fee:
Direct replication funds. • Investors should be aware that in addition to the All-In Fee, other factors may negatively impact the performance of their investment relative to the underlying index. • Examples include: Brokerage and other transaction costs, Financial Transaction Taxes or Stamp Duties as well as potential differences in taxation of either capital gains or dividend assumed in the relevant underlying index, and actual taxation of either capital gains or dividends in the fund. • The precise impact of these costs cannot be estimated reliably in advance as it depends on a variety of non-static factors. Investors are encouraged to consult the audited annual- and un-audited semi-annual reports for details.
