Deutsche Bank has begun a strategic review of its global asset management business, the company announced Tuesday.
The firm will consider “all strategic options,” including expanding or selling parts of the business. However, the firm will not sell its DWS mutual fund franchise in Germany, Europe and Asia, said company spokesman Klaus Winker. He said the bank remains committed to its asset management business.
The business had €523 billion ($707 billion) in assets under management as of Sept. 30.
The review is focused “in particular on how recent regulatory changes and associated costs and changes in the competitive landscape are impacting the business and its growth prospects on a bank platform,” according to a company statement Tuesday. Mr. Winker declined to elaborate.
Kevin Parker, global head of asset management, is leading the review. Mr. Winker declined to comment on whether an external consultant is assisting and wouldn’t say whether there was a timetable for the review.
Mr. Parker was hand-picked by CEO Josef Ackermann in 2004 to turn around the company’s asset management business.
The firm’s asset management business is in Deutsche Bank’s asset and wealth management corporate division, which reported pretax income of €186 million ($252 million) in the quarter ended Sept. 30, down 18.1% from the previous quarter but more than double the €91 million reported in the third quarter of 2010. Asset management income was about one-third of the increase over 2010, while private wealth management claimed the other two-thirds.