DWS Scudder plans to offer structured notes alongside its fund lineup. The notes, backed by parent Deutsche Bank, will be pitched next year through its fund distribution channel. The firm is awaiting approval for full broker/dealer licenses from NASD before it can start selling the notes.
DWS will target intermediaries, particularly independent financial advisors. Competition in the U.S. has been picking up with Fidelity Investments and Charles Schwab & Co. offering structured notes on their advisor platforms. Philipp Hensler, ceo of DWS Scudder Distributors, would not divulge what structured notes DWS will offer. He admitted selling the notes to intermediaries that have in-house options may be difficult, but as the offerings grow in popularity regulators will force intermediaries to open their platforms, just as they did with mutual funds.
DWS has also expanded its structure note offering in Europe and Asia over the last year, hiring a team from ABN AMRO in London to boost its sales (DW, 7/1/05). DWS is the retail brand of Deutsche Asset Management, with over USD630 billion under management.
