Deutsche Asset & Wealth Management (DeAWM) is reportedly planning to expand its wealth and asset management business in Asia by targeting high-net-worth (HNW) segment and expanding retail bank distribution in the region.
Under the expansion plan, DeAWM is also planning to boost it headcount in the region, the company’s head of Asia franchise development and strategic initiatives, Mark Smallwood, told AsianInvestor in an interview.
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Smallwood added that the firm will also be able to manage an increased number of transactions by outsourcing its wealth management platform and back-office operations to Avaloq, a move which is slated to complete by the end of 2015.
DeAWM has also started recruiting additional relationship managers to focus on the HNW segment, the publication said.
The company is planning to target the HNW segment with $5-25m investible assets by 2016 as a new wealth management platform becomes fully functional.
The firm is also appointing relationship managers, including a managing director in Hong Kong, to focus on the HNWI business, with plans to make further hires in 2016.
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By GlobalData"We have hired the initial one to two bankers and we are formulating the plan on how to build out. We are not hiring 100 people at once. Initially it will be an organic build-out within the existing teams and as momentum grows we will see how it develops," added Smallwood.
The company has recently hired Pauline Ko from Julius Baer as managing director and head of wealth management for Greater China.
DeAWM, which currently 200 relationship managers, is seeking to double this number in five years with a focus on the HNWI segment, particularly focusing on director and vice president level hires.
"High-net-worth is a complement to that and will be undertaken in a measured way. We are moving into this space and initiating the plan. The effect will be felt next year."
DeAWM had focused on larger insurers and sovereign wealth funds to expand its asset management business, while in fund distribution, it had focused on private banks but the next phase for the firm will be to pursue retail banking distribution.
Additionally, DeAWM is also boosting its sales and asset management team. It has started relocating the management of Asian assets to Hong Kong from the UK and Frankfurt.
