German private bank Sal. Oppenheim and Prumerica Financial have joined to create a mutual fund distr...
German private bank Sal. Oppenheim and Prumerica Financial have joined to create a mutual fund distribution network for the German market.
New funds are to be created especially for the German market, but no details have yet been released. However, the products are likely to be domiciled in Luxembourg and cover the global markets.
Initially the group will offer its existing fund range to Germany until further products are developed. The products will be branded Oppenheim Prumerica.
Sal. Oppenheim currently focuses its business on asset management for high net worth individuals and institutional customers, as well as investment banking.
Prumerica Financial currently offers a variety of products and services, including life insurance, mutual funds, annuities, asset management, and banking and trust services. The move should complement the two companies' product ranges.
Products will be distributed business to business and will sell through banks, insurance companies and intermediaries.
Detlef Bierbaum, partner at Sal. Oppenheim, said: 'The retail mutual fund business shows exceptional long term growth potential, which we intend to fully exploit.'
The joint venture hopes to capitalise on the expected growth in the mutual fund business following recent pension reform and a shift to a mutual fund investment culture. In addition, retail customers are increasingly requiring independent investment advice as well as greater flexibility in purchasing investment fund products.
The joint venture will also have the ability to distribute products in neighbouring countries, such as Belgium Luxembourg, Austria, Switzerland, and the Netherlands.
Prumerica Financial already has a presence in Italy through Banca Popolare Di Bergamo, but wishes to establish a business in Germany as this is the biggest market in Europe.
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