The Financial Times reports that Deutsche Bank is set to announce the departure of two senior executives from its fund management business. The executives are thought likely to be axed following a wide-ranging review of how the unit should be run. It is believed that the fund arm will, in future, be operated along product lines rather than geographically.
According to the newspaper, Paul Manduca, who heads up the unit's European operations and James Goulding, who runs Asia, might go as early as this week. There is some confusion as to whether Josh Weinreich, the global head of absolute return, is still with the bank, but he is believed to have already left.
Deutsche appears to be responding to the problems at its asset and wealth management divisions by a radical overhaul of the businesses. Profits in asset management and the wealth operations fell 57% in the third quarter to just $133m. The issues with these divisions have not, however, occured overnight. It was back in March 2002 that Michael Phillip, who headed up the asset management and wealth businesses then, stepped down following a 58% fall in profits in 2001. Some have been saying for a while now that Deutsche's fund arm just doesn't have the products the market wants.
Former global head of equities, Kevin Parker, is now the man with the mission to sort out asset management. Rumour has it that, if he successfully completes his assignment, he will eventually get to run Anshu Jain's global markets business. Jain is now tipped to be a strong contender to become Deutsche CEO when current boss Josef Ackermann eventually throws in the towel.
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