Deutsche Bank launches Exchange Traded Commodities ("ETC") platform
Deutsche Bank announces today the launch of its new cutting edge Exchange Traded Commodities (ETC) investment issuance platform with the launch of four new products on the Frankfurt Stock Exchange (Xetra). The new platform, branded “db ETC”, will roll out to the rest of Europe in 2010 and include ETCs on Gold, Silver, Platinum and Palladium.
The ETC market is one of the fastest growing investment segments in the Exchange Traded Product (ETP) market. According to a recent Deutsche Bank Research report, total assets in exchange traded commodity products across Europe grew by 145% in 2009, compared to only 43% in equities and 17% in fixed income.
Global head of commodities David Silbert said: “Exchange Traded Commodities issued by Deutsche Bank’s db ETC platform offer a simple way for investors to gain exposure to commodities without trading the futures contracts or taking physical delivery of the commodities they track. Our index linked ETCs offer full collateralisation of the products using physical gold, while competitors use baskets of equity and bonds. Our ETCs also offer fully liquid trading provided by Deutsche Bank as market maker of the products.”
In addition to USD ETCs Deutsche Bank will be offering Euro-hedged products on the platform. Since commodity products by definition carry USD exposure, Deutsche Bank aims to make commodities available to investors that want to have access to this asset class without USD exposure. Besides Euro-hedged and USD products on benchmark commodity indices, db ETC will provide access to Deutsche Bank’s own Optimum Yield commodity indices. This technique represents a way of investing into commodities with a view to maximizing gains and minimizing losses from the “rolling” of commodity futures contracts. Optimum Yield products are already successfully employed by db x-trackers ETFs carrying the word “Booster” in their name.
Head of db x-trackers Thorsten Michalik said: ““We expect to launch more than 30 products before June and will continue to add to the product range on the ETC platform as we launch more products across Europe. Building on our strong investment banking skills in commodities we are also planning to launch db ETC on the underlying physical asset classes, for example silver, which will be the first product of its type brought to market.
Deutsche Bank’s ETC products are simple, transparent and fully collateralized securities that trade on regulated exchanges. db ETC based on commodity indices will have a product management fee of 0.45% p.a. and the platform’s product fees are the lowest in the market. Any other costs that may arise from products, underlyings or the collateral will be made fully transparent to investors and can be monitored on www.etc.db.com.
An overview of the first 4 db ETC and the complete press release is available as download version.
For more information please contact:
Rajiv Shukla +44 207 545 7893
Thorsten Michalik +49 (0)69 910 30728
Helen Barnes / Guy Potvin +44 (0)207 404 5959
More information on db ETC can be found on www.etc.db.com. All of the above data was correct as at 5 March 2010.
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 77,053 employees in 72 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.