Deutsche Asset & Wealth Management (Deutsche AWM)’s UK wealth management business is set to continue its growth as it aims to double its business size within the next three to five years.
Deutsche AWM London-based UK client business volumes of high and ultra-high-net-worth (UHNW), in particular, have almost quintupled in size over the last five years, Deutsche AWM CEO for UK Wealth Management, Tom Slocock told PBI.
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"Realistically we can’t expect to continue with the very high levels of growth we’ve had over the past five years, but I would still expect to see improvement. I don’t see any reason why we shouldn’t continue to grow strongly," he said.
In the last year, Deutsche AWM has extensively expanded its staff in the UK, with a number of senior hires. Most recently the bank added four client advisers in the London wealth business form rival firms including Kleinwort Benson and Barclays Wealth.
However, Slocock said the aim of the group is to grow by hiring a relatively small number of people, as the bank is not expecting a huge client load per adviser and is not focusing on scaling the business by further acquisitions.
"We’ve had solid growth and our ambition is to continue growing, but that’s not to say that we will hire too aggressively or expand through an acquisition. We will continue to focus on doing the right things, for the right clients and in the right way," he said.
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By GlobalDataSince he started at Deutsche AWM in 2009, having previously worked in Credit Suisse, Slocock has been focusing on the UHNW client space and the strategic review and re-structure of the UK business – building the lender’s wealth management franchise in London almost "from scratch".
"I think what is unique about the UHNW segment in London is that it is an extremely dynamic market. Also, the growth of the UHNW segment is often uncorrelated to the local economy whereas in most other places it is a critical factor," Slocock said.
Earlier in 2014, the bank divested its Tilney business, a subsidiary of their UK operations (now Tilney Bestinvest), to the private equity firm Permira funds – including offices in Birmingham, Edinburgh, Glasgow and Liverpool. Deutsche AWM has significantly moved its focus to London ever since.
"London is the world’s global financial centre, but also for Deutsche AWM it is a key location where we need to continue to increase our presence," said Slocock.
In London, the opportunity Deutsche AWM, explained Slocock, centres around the firm having a "new story" to tell. While the UK wealth management client segment is large, it is also well served and competition is a key factor, but according to Slocock, Deutsche AWM "is seen as a clear European winner".
"We have huge capabilities that have not been made available to the client base at this stage and we are still ‘scratching the surface," Slocock told PBI.
Deutsche AWM UK core offering for HNWIs and UHNWIs revolves around investment, discretionary and advisory for UK Resident Non-Domiciled and Resident Domiciled clients – almost evenly split across the business, alongside non advisory services for sophisticated investors.
Slocock concluded: "Simple fact and figures are not necessarily enough and part of my job is to make sure that we have a credible, concise, and attractive strategy. So far, evidence suggests that we have been successful at that and we are now moving to the next stage of development."
