Deutsche Bank in talks on US asset management sale

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Deutsche Bank AG said on Tuesday that it has entered exclusive negotiations to sell investment management businesses to U.S.-based Guggenheim Partners, including Deutsche Bank’s DWS mutual fund business in the U.S.

The announcement came about three months after Deutsche Bank said it was conducting a strategic review of its global asset management division, including the division’s growth prospects at a company primarily involved in banking.

Tuesday’s joint announcement did not provide details on the status of the talks between Deutsche Bank and Guggenheim.

Businesses that could be included in a sale include DWS Americas; DB Advisors, a global asset management business focusing on institutional investors such as pension funds and foundations; Deutsche Insurance Asset Management, a global insurance asset management business; and RREEF, a global asset manager focusing on alternative investments.

In the U.S., DWS managed about $113 billion in more than 139 mutual funds and variable insurance portfolios, as of Sept. 30. Industry tracker Morningstar lists DWS as the 35th largest mutual fund family in the U.S., based on assets held in mutual funds.

DB Advisors managed about $225 billion at the end of last year.

Deutsche Bank is keeping its DWS business in Germany, Europe and Asia, which it says is “a core part of its retail offering in those markets.” Globally, organizations under the DWS brand managed about $315 billion as of Sept. 30.

Guggenheim is a privately held global financial services company with expertise in institutional asset management and more than $125 billion under management. The company has headquarters in New York City and Chicago, and serves clients in North America, Europe and Asia.

U.S. shares of Deutsche Bank added 40 cents to $47.10 in Tuesday trading.