Commerzbank Asset Management Revises European Strategy

by Carla Johnson, InvestorsOffshore.com

09 August 2001

Commerzbank is currently revising its European marketing and sales strategy in asset management as part of a 'strategic reorientation' to develop further its existing marketing and distribution structures in the region.

The reorientation aims to strengthen the focus on customers by providing them with an all-round service that is not just restricted to individual products, thus a distinction will be made throughout Europe at the sales level between institutional and retail business. This makes country-specific marketing measures possible and promotes cross-border sales of products.

Prior to the strategic reorientation, Commerzbank conducted a study of the volume, growth and potential earnings of the various client segments and the different European countries. Dr Heinz Hockmann, who is responsible for asset management on Commerzbank's management board, said the findings of the study led Commerzbank to focus its institutional business 'on Germany, the United Kingdom, France and Spain, whereas in the retail area we will concentrate on the German, British, French and Italian markets.'

Within the new strategy, Europe is defined as a key market. While existing activities in Asia are being consolidated in the form of an Asian holding company, US business is to be reorganised by means of a strategic alliance with a major asset manager. As a result, Commerzbank says it will become a European asset manager with global competence for products.

The new management structure due to be operational by the end of the year, is currently under construction and is specifically for asset management to deal separately with institutional and retail business. The department, headed by Dr Friedrich Schmitz, will be managed by an asset management committee, consisting of the two heads of institutional and retail business, the head of marketing and sales co-ordination and also the chief operating officer. In addition, a new investment committee is being established to manage investment processes on a Europe-wide basis.

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