Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Deutsche creates 'sophisticated' ETF service for clients

Deutsche creates 'sophisticated' ETF service for clients

Deutsche Bank has decided to offer its customers investing in passives a new service that will provide sophisticated live coverage to clients trading daily on exchange traded funds (ETFs).

In order to spearhead the service, the bank has created a new role and appointed Sidi Kleefeld, formerly of Deutsche Bank Global Markets Equities, to serve as EMEA head of ETF execution advisory.

He will cover a few dozen clients to discuss investment ideas and short-term strategy.

He is currently the only person carrying out the task but the department is set to grow depending on client demand.

While other teams will remain dedicated to making new clients interested in ETFs, Kleefeld's goal is to increase services for short-term tactical traders who are already heavy ETF users and focus on increasing on-exchange trading.

He will also help to increase trading liquidity, especially as a lot of ETF trading is done over the counter.

Simon Klein, head of passive investments EMEA & Asia, told Wealth Manager that from a sales perspective it is no longer enough to merely focus on explaining what ETFs do and what they can be used to achieve but that it has now become a matter of offering a more refined service to help drive trading.

The firm considers this new post as a step up from its more traditional sales approach of  explaining the advantages of passive investment.

He said: 'Ten years ago it was hard to convince clients in Europe of the benefits of the tool. Now the ETF market is seen as a commoditised investment programme and we have to service our clients at the next level.'

Klein, who believes this approach will benefit the entire market, said that in the past clients mainly used mainstream ETFs but now they are also using other, more specialised types and there is a lot of rotation between sectors and factor exposures, and other tactical positioning.

The big task of the new team is to talk to clients about better trading strategy in the passive environment.

In the wider European market, inflows into European ETFs and exchange traded products reached a record $74 billion (£57.4 billion) in the year to August.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Thomas Miller explains its post-restructure plans

Profile: Thomas Miller explains its post-restructure plans

Thomas Miller Investment’s (TMI) head of wealth Matt Phillips has strong opinions about many things

Wealth Manager on Twitter