Deutsche Asset Management
is ditching the moniker Flag Investors in order to consolidate its domestic branding. The load fund family will adopt the Deutsche Asset Management name, which is currently used for the firm's no-load funds.
Furthermore, in a statement, the firm cited as one benefit the ability to adopt multiple pricing structures. With demarcation lines beginning to blur as commission-based brokers start to breach the fee-based model, consolidation makes sense.
Financial intermediaries selling the loaded shares informed the firm that the Deutsche name had much more brand appeal than the lesser-known Flag Investors.
Perhaps most significantly, the brand consolidation signals an effort on the part of Deutsche to balloon its market share in the US fund industry.
"Deutsche Asset Management is committed to growing its mutual funds business in the United States, building on its strengths around the world as a leading asset management company," said Ross Youngman
, managing director and head of mutual funds in the Americas.
Three funds sub-advised by Baltimore-based subsidiary Alex. Brown Investment
Management will be added to the Deutsche Asset Management brand, keeping the Flag Investors name as well. The Flag Investors brand came with Deutsche Bank's purchase of Bankers Trust, which owned Alex. Brown, in 1984.
New York-based Deutsche currently has about 70 mutual funds with a total of over $48 billion in assets.
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