DB Commodity Services, a subsidiary of Deutsche Bank, has signed an agreement with Invesco PowerShares to shift the management of the existing PowerShares DB fund suite to Invesco PowerShares.
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Developed in 2006, PowerShares DB fund suite contains 11 exchange-traded commodity pools, with a combined net asset value of $8.2bn as of 30 September 2014.
Currently, Invesco PowerShares provides marketing and distribution services to the PowerShares DB fund suite.
Subject to certain conditions to closing, Invesco PowerShares will take over the role of commodity pool operator and commodity trading advisor for the funds as well as complete responsibility for the product range, including portfolio management, distribution and operations.
In addition, Deutsche Asset & Wealth Management (DeAWM) will offer access to the underlying DeAWM indices and associated ongoing support.
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By GlobalDataThe transaction, which is subject to necessary approvals, is expected to close in the first quarter of 2015.
Jerry Miller, head of DeAWM in the Americas, said: "This Transaction allows us to focus on our strategic priorities, including growing our market share in the U.S. by expanding our innovative and award-winning Deutsche X-trackers platform."
Andrew Schlossberg, managing director and head of U.S. distribution and global head of ETFs at Invesco, said: "This agreement contributes to Invesco PowerShares’ focus on growing the well-diversified family of Smart Beta ETFs we offer investors across the globe and further strengthens our leadership position as an innovative provider of alternative investment solutions."
