26/07/2011 Author: Tony Griffiths

Deutsche Bank’s dbSelect platform nears $5bn AuM

Deutsche Bank’s specialised managed account platform, dbSelect, is poised to pass $5bn in assets under management in the first weeks of August, HFMWeek can reveal, as investors continue to seek exposure to CTAs, commodity, FX, global macro and managed futures hedge fund managers, despite the recent troubles in commodity markets.

According to the bank, dbSelect, which offers more than 120 managed accounts from managers trading in liquid strategies, is due to comfortably pass the $5bn AuM mark in early August, in what would be a rise of nearly $1bn in four months.

June and July saw inflows at dbSelect of $175m and $340m respectively, with mandates coming from a range of investors, including one large mandate from a Japanese pension fund. In addition to strong demand from Japan, the majority of interest has come from investors in Europe and the UK, the US and Switzerland.   

“We are expecting strong growth for the rest of the year,” Hans Jacob Feder, head of dbSelect, told HFMWeek.
“We see strong demand from institutional investors that are implementing cash-efficient ways to diversify into this asset class in the US. dbSelect has proven to be a cost-effective way to achieve diversification for our US investor base”, said Remy Marino, head of alternative investments solutions at Deutsche Bank’s New York office.

The inflows come during one of the toughest periods for FX, commodity and managed futures hedge funds in recent years, which saw markets slump in May, further struggles in June and a minor recovery in July.  

Managed future funds are considered a good hedge during periods of wider economic turmoil. Recent wrangling in the US over the national debt has led a number of commentators to suggest global markets are due to suffer.  

Deutsche Bank has two managed account platforms: db Select and X-markets, which supports accounts utilising more traditional hedge fund strategies. In March 2011, the two umbrellas held AuM of $4.2bn and $6.3bn respectively – a combined total making the German bank the industry’s second largest platform provider for managed accounts.