Business
Deutsche Bank’s ongoing restructuring deemed not to affect Vietnam portfolio
Deutsche Bank will continue to promote DWS fund management, the money management unit of the bank, with the goal of reaching top 10 largest fund management companies in the world.
Deutsche Bank's current restructuring effort is unlikely to its securities portfolio in Vietnam, according to Bao Viet Securities Company (BVSC).
The Germany-based lender recently announced it would lay off 18,000 jobs globally that will will ultimately cost EUR7.4 billion (US$11.3 billion) and scale back its investment bank - a major retreat after years of working to compete as a major force on Wall Street. The bank has almost 91,500 staff around the world.
As part of the overhaul, the bank will scrap its global equities business and also cut some of its fixed-income operations
In Vietnam, Deutsche Bank currently holds a share portfolio worth hundreds of millions of dollars through investment funds, including the FTSE Vietnam exchange traded-fund (ETF) – the second largest ETF in Vietnam’s stock market with total investment portfolio worth US$300 million.
Additionally, Deutsche Bank also appointed Duxton as the delegated fund manager for DWS Vietnam fund, which has recently been renamed to Vietnam Phoenix Fund Limited.
Vietnam Phoenix Fund Limited’s portfolio is estimated at US$150 million, mainly focus on companies that have not listed share on stock market, including Greenfeed, Anova, VTC Online, among others.
BVSC expected a series of changes made by Deutsche Bank would help to reduce 25% of its business costs by 2022.
Regarding corporate structure, firstly, in order to operate more effectively after a series of incidents in the last 5 years, Deutsch Bank will completely exit stock trading business, while at the same time, gradually reducing capital for bond market by about 40% of the current level. The Deutsche Bank’s buying and selling equities business will be taken over by French BNP Paribas.
Secondly, Deutsche Bank will form a Corporate Banking unit to serve businesses.
Thirdly, the German bank will continue to strengthen the expansion of private banking segment, especially asset management service for individual customers in Asia.
Fourthly, Deutsche Bank will continue to promote DWS fund management, with the goal of reaching top 10 largest fund management companies in the world.
“Therefore, it can be said that the FTSE Vietnam ETFs will not be negatively affected by this restructuring but may possibly benefit in the future,” suggested BVSC.
Illustrative photo.
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As part of the overhaul, the bank will scrap its global equities business and also cut some of its fixed-income operations
In Vietnam, Deutsche Bank currently holds a share portfolio worth hundreds of millions of dollars through investment funds, including the FTSE Vietnam exchange traded-fund (ETF) – the second largest ETF in Vietnam’s stock market with total investment portfolio worth US$300 million.
Additionally, Deutsche Bank also appointed Duxton as the delegated fund manager for DWS Vietnam fund, which has recently been renamed to Vietnam Phoenix Fund Limited.
Vietnam Phoenix Fund Limited’s portfolio is estimated at US$150 million, mainly focus on companies that have not listed share on stock market, including Greenfeed, Anova, VTC Online, among others.
BVSC expected a series of changes made by Deutsche Bank would help to reduce 25% of its business costs by 2022.
Regarding corporate structure, firstly, in order to operate more effectively after a series of incidents in the last 5 years, Deutsch Bank will completely exit stock trading business, while at the same time, gradually reducing capital for bond market by about 40% of the current level. The Deutsche Bank’s buying and selling equities business will be taken over by French BNP Paribas.
Secondly, Deutsche Bank will form a Corporate Banking unit to serve businesses.
Thirdly, the German bank will continue to strengthen the expansion of private banking segment, especially asset management service for individual customers in Asia.
Fourthly, Deutsche Bank will continue to promote DWS fund management, with the goal of reaching top 10 largest fund management companies in the world.
“Therefore, it can be said that the FTSE Vietnam ETFs will not be negatively affected by this restructuring but may possibly benefit in the future,” suggested BVSC.
