Group will unveil UK & European funds on 7 October, with further launches planned next year
Deutsche Asset Management, soon to be rebranded DWS, is to launch UK and European aggressive funds on 7 October.
DWS UK Opportunities, which will focus largely on the FTSE 350, is to be managed by Phil Doel, while DWS European Opportunities will be managed by Julian Barrell, who has run European equity mandates at the group for five years.
The funds will each consist of around 25 equally weighted best ideas leveraging Deutsche's global investment process. Positions will be rebalanced once stock weightings change by plus or minus 1%.
The funds will initially have just a single share class, with initial charges of 4.25% for Oeic investments, 3.25% through Isas and 3% for Pep transfers.
Annual management fees will be 1.5% and commission 3%. Trail will be 0.5% for Pep and Isa transfers.
The two funds are likely to be followed in January next year by two further aggressive funds, according to Michael Warren, managing director of the Deutsche UK retail business. These, Warren said, will focus on US and Japanese equities, with both branded Opportunities.
A leading candidate to manage the US fund is Charles Martin-Hemphill.
However, Warren said sister company Scudder could be asked to run the fund from the US.
The lead candidate for manager of the Japanese Opportunities fund is James Pulsford, manager of the group's successful Japan retail fund.
A strengthening of Deutsche's fixed interest fund range is also on the cards, according to Warren. A global fixed interest fund is most likely, he said, as it is an area in which Deutsche has no current offering.
The group also has no straight UK Gilt fund at present, so this is another possible area in which a launch could be made, he added.
Warren noted. 'We need to bring on board some more bond products. Whether it will be high yield or more UK products we don't yet know. It really depends on market conditions.
'We will also look to bring at least one sector fund to market next year.'
Further possibilities for the retail business include structured products, which are manufactured elsewhere under the global Deutsche business.
The move follows changes being made to Deutsche's Blue Chip fund, which is to have its mid-cap exposure cut back under new manager Michael Crawford.
Exposure to mid-cap stocks in the fund is being capped at 20% and Crawford is looking to focus on companies with 'sufficiently attractive characteristics to get into the FTSE 100.'
Crawford, who took over from Nigel Ridge earlier this month, stressed the fund will not undergo wholesale change but he will reduce Ridge's sector and thematic bets.
Crawford said he tries to mitigate risk in running money by avoiding large sector or macro bets, preferring to focus on fundamentals such as balance sheet analysis, competitive advantage and quality of management.
In terms of number of holdings, currently around 65, the portfolio will be kept the same, but Crawford does anticipate some sector rotation.
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The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.