Deutsche fixed interest products slip in Assirt rating
Assirthas givenDeutsche Asset Managementa tick for its Global Equities Opportunities Fund, but a cross for the fund manager’s international fixed interest capabilities and products in a mid yearly review.
Much of the focus in the review was on Deutsche’s integration of newly bought subsidiary Zurich Scudder, and Deutsche’s loss of part of its mandate over the NSW State Government Superannuation Fund which recently brought in other managers in addition to Deutsche to manage various portfolios of the fund.
Of its integration process, Deutsche were praised for the “minimal impact” the process has had on employees throughout both organisations, and that key Zurich Scudder staff were retained in the merger. The merger also had a positive implication in Assirt’s eyes in that it positions Deutsche as one of the largest asset managers in the US.
The loss of funds posed by the removal of exclusive control over the mandate of the NSW State Government super plan impacted Deutsche as a loss of $8 billion. However, this was countered by the gain in funds under management from the Zurich Scudder buyout, Assirt says, which added another $8.2 billion into the Deutsche balance sheets.
Assirt notes that a positive from the mandate change is that there is now a decrease in the total funds under management in Australian equities, which means that potential future capacity issues are alleviated.
Deutsche was thought to be ‘very strong’ across sectors of business management, asset allocation, Australian equities and enhanced international equities; ‘strong’ in operating capability, listed property trusts, cash and absolute return strategies; and competent in Australian fixed interest and international fixed interest.
Deutsche’s managed funds retained their ratings except for those funds which were linked to Deutsche’s international fixed interest capabilities. These were the Diversified Bond Fund, Global Bond Fund and Capital Stable fund, all which were downgraded from four stars to three.
A new Deutsche fund, the Global Equity Opportunities Fund, was christened with a three star rating.
“Assirt has issued a strong rating on DeAM’s Global Equities Opportunities capabilities and awarded the product three stars. We believe DeAM spend considerable time examining the relevant issues, and have strong monitoring capabilities,” Assirt notes in its report.
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