Deutsche Asset Management

March 08, 2005 10:55 ET

Deutsche Asset Management Launches New Canadian Fixed Income Product to Address the Needs of Investors


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DEUTSCHE ASSET MANAGEMENT

NYSE SYMBOL: DB

MARCH 8, 2005 - 10:55 ET

Deutsche Asset Management Launches New Canadian Fixed
Income Product to Address the Needs of Investors

NEW YORK--(CCNMatthews - Mar 8, 2005) -

Deutsche Asset Management (DeAM) today announced the launch of the
Canadian Fixed Income Alpha strategy. This innovative fixed income
strategy is part of DeAM's iGAP platform, a leading alpha-generating
capability, and is targeted to the investment needs of Canadian
institutional investors.

The strategy's unique approach to the Canadian market combines Deutsche
Asset Management's strong alpha-generating capabilities with the
expertise in Canadian fixed income investing of State Street Global
Advisors (SSgA). The Canadian Fixed Income Alpha strategy seeks to
deliver a target of 1.5% annualized return (gross of fees) above the
Scotia Capital Universe (SCU) Bond Index. To achieve this, index
exposure is combined with a Canadian bond alpha overlay strategy. It
makes use of SSgA's Canadian Bond Index strategy, which seeks to exceed
the return, and replicate the risk parameters and duration, of the SCU
Bond Index. At the same time, DeAM's alpha overlay strategy has a 1.5%
active risk target, and invests in developed market exchange-traded
government bond futures and currency forward contracts.(1)

The result is a potential source of exceptional, unique and low
correlated alpha for the Canadian fixed income asset class.

"The launch of this strategy represents DeAM's continued commitment to
meet the needs of Canadian institutional investors including the
Canadian pension fund market, which ranks as the fourth largest in the
world(2)," says Stephen Burke, CEO for DeAM - Americas. "By adding a
Canadian fixed income strategy to our product offering, we will be able
to compete for a significant new pool of assets in the Canadian market."

DeAM's alpha overlay strategy falls under its integrated Global Alpha
Platform (iGAP). The investment philosophy of iGAP is the belief that
combining a diversity of investment styles within a single portfolio may
provide our clients with the benefits of a multi-manager approach:
diversification of investments, lack of correlation among strategies,
effective risk management and potential for consistent outperformance.
"With iGAP, our goal is to combine a broad range of uncorrelated
long/short strategies to maximize a portfolio's performance," says Janet
Campagna, global head of DeAM's Advanced Research and Quantitative
Strategies group. "We believe that by incorporating the iGAP platform
into a Canadian fixed income strategy, we will fill a need that exists
in the Canadian marketplace."

Geoff Moore, DeAM's director of business development in Canada, expects
that the Canadian Fixed Income Alpha strategy will hold strong appeal
for Canadian investors. "Many institutional investors are examining how
to optimally separate or combine their allocations to alpha and beta
strategies. DeAM's new Canadian Fixed Income Alpha strategy addresses
this issue by providing a way for investors to diversify their Canadian
bond allocations, while seeking significant alpha, all in a single
vehicle."

As of December 31, 2004, Deutsche Asset Management manages over CAD $3
billion in assets for clients that include corporate plans, endowments
and foundations, insurance companies, financial institutions and public
plans.

With approximately US$730 billion in assets under management (as of
December 2004), Deutsche Asset Management is one of the world's leading
investment management organizations, not just in size, but in quality
and breadth of investment products, performance and client service.
Deutsche Asset Management is geographically divided into three regions -
the Americas, Europe and Asia Pacific, providing a broad range of
investment management products across the risk/return spectrum.

(1) Please note that the use of hedging strategies may in certain
circumstances cause the value of a portfolio to appreciate or depreciate
at a greater rate than if such techniques were not used, which in turn
could result in significant losses. Derivative instruments may at times
be illiquid, subject to wide swings in prices, difficult to value
accurately and subject to default by the issuer.

(2) Watson Wyatt World Wide League Tables December 2003

The integrated Global Alpha Platform (iGAP) is managed by Deutsche Bank
Trust Company Americas (DBTCA), a 'bank' as defined under Section 202
(a)(2) of the Investment Advisers Act of 1940 (the Act) which is exempt
from registration under the Act. Where required by Commodity Exchange
Act regulations, iGAP is jointly managed by DBTCA and DB Capital
Advisers Inc., a registered commodity trading adviser.

Deutsche Asset Management Canada Limited is the Manager and Advisor of
the DeAM Canadian Fixed Income Alpha strategy. Deutsche Asset Management
Canada Limited is a wholly owned subsidiary of Deutsche Investment
Management Americas Inc.

Deutsche Asset Management is the marketing name in the US for the asset
management activities of Deutsche Bank, AG, Deutsche Bank Trust Company
Americas, Deutsche Asset Management Inc., Deutsche Asset Management
Investment Services Ltd., Deutsche Asset Management Americas Inc. and
Scudder Trust Company.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Deutsche Asset Management
    Rosalia Scampoli, (212) 250-5536