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.