(Corrects to say DekaBank sees clients shifting to higher- yielding assets, changes description to asset manager in first paragraph.)
DekaBank sees clients shifting investments from bonds to higher-yielding assets including German properties as the Frankfurt-based asset manager expects low interest rates to prevail for “much longer” than originally anticipated.
“Government bonds and money-market investments are sort of out of fashion,” Deputy Chief Executive Office Oliver Behrens said in a telephone interview from Abu Dhabi. “This view has emerged over the last year and becomes visible in 2013. Not just only with our company.”
The German company, which manages about 173 billion euros ($226 billion), sees “bright spots” within the euro zone and favors real-estate assets in Germany and northern Europe, as well as German manufacturers, Behrens said.
Global stocks have gained more than $2 trillion since the start of 2013 as central banks fight battles from Europe’s debt crisis and slowing U.S. economic growth. Chairman Ben S. Bernanke signaled last month that the Federal Reserve will keep holding down the benchmark rate near zero and purchasing Treasuries and mortgage debt.
DekaBank has lured about $1 billion from Middle East investors into European equities, Behrens said today before holding a presentation to investors in the capital of the United Arab Emirates.
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