Chats with Denis Friess: Deka's ETF Expansion
By Frank the Radical, Metropolis
Deka actively dispenses its exchange-traded funds to savings banks.
Denis Friess, the main man at Deka Investment's Institutional Fund Management, is spilling the beans about Deka's latest move: They're hooking private clients onto ETFs through Sparkasse advisors. Sounds juicy, right? Let's dive in!
Deka's New Gig
Deka's been on the ETF scene since 2008, but it's only now they're making a big push to retail clients. Why the sudden shift? According to Friess, ETFs are the gateway product with a complimentary role; they're all about keeping clients in the fold.
Customized Indices
But it's not just any ETFs we're talking about. Deka Investment works with index providers to develop bespoke indices tailored to each institutional investor's unique needs. Talk about VIP treatment!
Bridging the Gap
Deka's ETF biz used to be all about the institutions, but with the plans to launch Deka's ETF offerings through Sparkassen come June 2024, that's about to change. Friess explains that, apart from private clients, advisors will also find these ETFs an enticing entry and complementary product.
Sparkassen's Welcome
Many Sparkassen have welcomed Deka's new offering, with a surge in ETF savings plans. In fact, 75% of investors who own a Deka ETF already have other Deka products in their portfolios. And for first-time investors looking to get into securities, ETFs could be just the ticket for building securities confidence for efficient capital investment.
Deka's High-Quality ETFs
Deka's ETFs don't mess around. They strictly use full replication and steer clear of swaps when possible. Securities lending within their ETFs? Forget about it — it's been completely eliminated. Deka takes pride in the "Made in Germany" label, as all their ETFs are issued domestically and have corresponding ISINs.
Emphasis on Sustainability
Deka ensures a hefty focus on sustainability within their ETF offerings. By collaborating with MSCI, they've developed a number of sustainable ETFs classified under Article 9 of the EU's Sustainable Finance Disclosure Regulation (SFDR), such as the MSCI World Climate Change, MSCI Europe Climate Change ESG UCITS ETF, and the MSCI USA Climate Change ESG UCITS ETF. These eco-friendly offerings are gaining traction among investors who value environmentally-friendly investments.
A Manageable Portfolio
Deka keeps its ETF portfolio lean and straightforward, offering funds that follow standard stock indices like the Dax, Euro Stoxx 50, MSCI World, S&P 500, or Nasdaq 100. Friess feels that the range should stay manageable, with plans to expand it in a reasonable manner while maintaining accessibility for investors.
Redemption Possible
Accumulating variants of Deka's ETFs are primarily tax-oriented, but they can certainly be redeemed.
Distribution Partners
Deka's main focus for ETF distribution is the S-Broker, with no current collaborations with other neo or discount brokers. However, Friess clarifies that any investor can trade Deka's ETFs on the exchange, regardless of the distribution channel.
Listen up, folks! Deka's rolling out ETFs for the masses, all while maintaining that high-quality control we've come to expect from the brand. And if you're looking for a sustainable option, they've got you covered. Keep an eye on Deka's retail expansion, as this could be just the ticket for securing new clients and fostering investment growth. Cheers!
Private clients are now being introduced to exchange-traded funds (ETFs) by Deka Investment through Sparkasse advisors, marking a significant shift in their business towards retail clients. Investing in Deka's high-quality ETFs could be a great entry point for building securities confidence amidst efficient capital investment, especially for first-time investors.
