Deutsche Bank, through its International Private Bank (IPB), has launched four strategic income allocation (SIA) funds for its income-focused clients in Europe and Asia. Harnessing the capabilities of the bank’s asset management arm DWS, the funds aim to provide diversified income sources by investing in exchange-traded funds linked to fixed income, global equity, listed real estate and infrastructure indices, as well as using options for yield enhancement.
According to the bank, achieving income while controlling risk is increasingly difficult for investors. The SIA funds seek to generate income distributions while at the same time benefiting from Deutsche Bank’s “Plus” downside risk management framework.
The new funds complement IPB’s flagship strategic asset allocation (SAA) investment offering, introduced just over a year ago. Thousands of clients worldwide have already invested in the SAA funds, with assets under management now totalling over 3.5 billion euros (US$4.17 billion) as of June 11 2021.
Alessandro Caironi, head of advisory and sales at IPB, says the SIA solution offers investors the opportunity to invest in a product that is focused on pursuing consistent, long-term market-oriented returns.
Christian Nolting, global chief investment officer and head of chief investment office & investment solutions, adds: “Our new SIA Plus funds use our highly-regarded SAA strategy with the aim to deliver income from multiple sources. Clients now have the opportunity to benefit from a sophisticated but cost-efficient approach and the ability to combine a modern portfolio strategy with a ‘Plus’: our distinctive systematic hedging strategy.”
The subscription period for the SIA funds started in mid-June 2021 in selected markets in Asia and Europe.