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Deutsche Bank sets groundwork for DWS IPO

Deutsche_Bank_buildingDeutsche Bank is to launch an IPO for its asset manager DWS as soon as it can by selling shares it indirectly holds.

The shares will be sold “in the earliest available window” in Frankfurt, subject to market conditions.

The floated company will attempt to increase its assets under management (AUM) by 3-5% annually. DWS currently manages €700 million.

It has and will retain a distribution agreement with Deutsche Bank, which currently accounts for 12% of AUM.

Giving further details away on Monday, DWS and Deutsche Bank said the asset manager aims for a margin on management fees of greater than or equal to 30 basis points in the medium term.

The company also aims to reduce the adjusted cost-income ratio to below 65% in the medium term, and distribute 65-75% of its reported net income as dividend.

Of its €700 billion of AUM, €513 billion is active, €71 billion is in alternatives and €115 billion is in passive investment operated by its Xtrackers ETF business.

DWS also has a 26% market share in Germany and employs 900 investment professionals globally.

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