DekaBank, the asset management division of the German Savings Bank Group (Fondsgesellschaft der Sparkassen), has announced plans to offer certificates to retail clients in Germany from 2013.
DekaBank has started a process to rebuild the bank into a securities firm in order to promote the lucrative business of certificates, while stepping away from the weakening fund business.
"Today's decision allows us to take the necessary steps in becoming the central securities house for savings banks", said Oliver Behrens (pictured), acting chairman of the DekaBank management board.
The Frankfurt-based asset manager plans to become a central certificates provider for the German Savings Bank Group (Sparkassen) and is therefore reorganising the management structure of Deka Investment GmbH, which handles all of the actively managed mutual and institutional funds.
Hartmut Knüppel, managing director of the German derivatives association, the Deutsche Derivate Verband, welcomed the move from DekaBank into the certificates market. "In principle, more competition in a market economy is always positive," he said. "Whether the entrance of Deka is going to result in a shift in market share or if Deka manages through the German Savings Bank Group to reach new clients, is not foreseeable."
With this new range of products Deka will step into competition with state banks (Landesbanken).
DekaBank expects sales of certificates via the wide distribution chain of the German Savings Bank Group to strengthen the business of its asset management unit, which was previously focused mainly on funds.
The downturn in the sector since the beginning of 2012, which has seen clients withdrawing high sums from funds as well as facing new regulation, has prompted the strategic shift.
DekaBank's biggest competitors in the certificates market are in the state sector and include Landesbank Baden-Württemberg (LBBW) and Hessische Landesbank (Helaba) - who are are strong certificates providers - alongside Bayerische Landesbank (Bayern LB) and Landesbank Berlin (LBB).