Deutsche Bank launches innovative fund linked notes
Deutsche Bank today announced it has sold more than $700 million worth of Protected Investment Alpha Notes (PIANO). These notes are backed by a portfolio of fixed income securities and derivatives managed by PIMCO. The notes carry significant Libor outperformance targets of up to 2.5%. The notes are issued by Deutsche Bank (Aa3/AA-) off their global EMTN programme.
The notes are principal protected by Deutsche Bank, carrying a minimum redemption value of 100% at maturity. One form of the notes carries Libor-based coupons; the other form offers investors total return. The notes are intended to be managed for stable returns, low volatility and low correlation with broad fixed income and equity markets. Four separate tranches were launched, two each in US Dollars and Euros. Total return and Libor-based tranches were launched in both currencies. The note maturities are between four and seven years.
Investors from 22 countries purchased the notes. Banks, fund managers and insurers all featured prominently in the order book. European investors purchased the majority of notes, with the balance of demand coming from Asia and the Middle East. PIMCO and Deutsche Bank see good potential for follow on demand and expect that the number of notes outstanding will grow.
Scott Mather, Managing Director and Head of Portfolio Management Europe at PIMCO stated: “The PIANO transaction is an extremely innovative, flexible and impressive product, which provides a client segment with the protected returns they sought. We were impressed with Deutsche Bank’s breadth of distribution and fund structuring capabilities.”
Michele Faissola, Head of Global Rates at Deutsche Bank, said: “PIMCO is a prestigious and trusted provider of investment outperformance. We are delighted to have been able to work with PIMCO to provide fixed income investors with an innovative product that combines security with above-market returns.”
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With more than $128 billion (€101 billion, £68 billion) of assets managed and serviced out of Europe and more than $641 billion worldwide (€506 billion, £342 billion), PIMCO is one of the world's leading fixed-income fund management companies.
Founded in 1971 and headquartered in Newport Beach, California, PIMCO is the fixed-income platform of the Allianz Global Investors group of companies. PIMCO offices are located in London, Munich, Toronto, New York, Newport Beach, Singapore, Sydney, Hong Kong and Tokyo.
Over the last twelve months, PIMCO has won a number of prestigious awards including Global Fixed Income Manager of the Year at the Financial News Awards for Excellence in Institutional Asset Management 2006 (in 2005, PIMCO won Nordic Asset Manager of the Year and the Institutional Marketing Award); Fixed Income Manager of the Year at the Global Money Management Awards 2006; Fixed Income Manager of the Year at the Global Pensions Awards 2006; the High Yield Bonds Award at the Pensions Management Provider Awards 2006;
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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 Euro 1,058 billion in assets and 65,435 employees in 73 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.
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