Invesco Adopts an $8.2B Suite While Prepping Deutsche-Powered ETFs
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Thursday, October 30, 2014

Invesco Adopts an $8.2B Suite While Prepping Deutsche-Powered ETFs

Andrew Schlossberg and his team are taking over an $8.2-billion, 11-product business, even as they prepare a new commodity ETF suite.

Today Schlossberg, managing director and head of U.S. distribution and global head of ETFs at Invesco, and Jerry Miller, head of Deutsche Asset & Wealth Management [profile] in the Americas, confirm that Deutsche's DB Commodity Services will transfer management of the Powershares DB suite of 11 exchange-traded commodity pools to Invesco PowerShares [profile]. The adoption is slated for Q1 2015. PowerShares is also prepping a new commodity ETF product suite, which like the PowerShares DB suite will be powered by DB indices [see the filing with the SEC].

PowerShares and Deutsche Bank first launched the PowerShares DB funds in 2006, with Deutsche handling the commodity product structuring and PMing, while PowerShares marketed and distributed the funds. Once the adoption closes next year, PowerShares will take over as commodity pool operator and commodity trading advisor, too. Deutsche's indices will continue to power the funds.

"Our relationship with Deutsche AWM has successfully allowed our firms to reach clients with innovative commodity- and currency-related ETF solutions," Schlosberg states. "This agreement contributes to Invesco PowerShares' focus on growing the well-diversified family of Smart Beta ETFs we offer investors across the globe and further strengthens our leadership position as an innovative provider of alternative investment solutions."

As for Deutsche, the bank's asset management side is bringing their global ETF efforts to bear in the U.S.

"This Transaction allows us to focus on our strategic priorities, including growing our market share in the U.S. by expanding our innovative and award-winning Deutsche X-trackers platform," Miller states.

Deutsche AWM has $1.27 trillion in assets under management as of September 30, including $67 billion on its ETF platform worldwide. PowerShares worked with nearly $100 billion in ETFs in U.S. as of September 30.

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