Bloomberg News

Deutsche Bank Becomes Second to Sell ETNs Similar to Barclays’s

October 08, 2013

Deutsche Bank AG (DB:US) has joined Credit Suisse AG in offering exchange-traded notes that resemble securities Barclays Plc rolled out in May that have already surged to the top 10 in the U.S. in assets.

The FI Enhanced Global High Yield ETNs (FIEG:US) initially yield twice the gains or losses of the MSCI World High Dividend Yield USD Gross Total Return Index with adjustments such as for fees, according to a prospectus filed with the U.S. Securities and Exchange Commission. The benchmark includes global stocks that pay higher-than-average dividends.

The securities started trading today under the ticker FIEG. On May 20, Barclays introduced an ETN, structured with billionaire Ken Fisher’s Fisher Asset Management LLC, by a similar name that uses the symbol FIGY. The Barclays security, which also employs two times leverage, has soared to the fifth-largest of about 200 U.S. ETNs, with $1.24 billion of assets, according to data compiled by Bloomberg.

Credit Suisse began offering a note last month, with the symbol FIEU, that was similar to another created by Barclays and Fisher Asset Management, with the ticker FEEU, Bloomberg data show. Both ETNs started out tracking twice the gains and losses of the STOXX Europe 50 USD (Gross Return) Index, according to prospectuses filed with the SEC.

The Barclays ETN has $915.52 million in assets (FEEU:US). The Credit Suisse security has $56.78 million (FIEU:US) after one month, making it the 40th biggest in the U.S.

David Eckerly, a spokesman for Fisher Investments, declined to comment on the Deutsche Bank notes or whether the firm worked with the issuer in creating them. Amanda Williams, a spokeswoman for the Frankfurt-based lender, and Mark Lane, a spokesman for Barclays in New York, declined to comment.

The Deutsche Bank ETNs charge an investor fee that will be based on the index performance and the three-month U.S. dollar London interbank offered rate. The bank can charge 0.1 percent for a repurchase and, if the index falls more than 40 percent, the principal amount of the securities will be reset for a 0.05 percent fee.

To contact the reporter on this story: Kevin Dugan in New York at kdugan4@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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Companies Mentioned

  • DB
    (Deutsche Bank AG)
    • $34.16 USD
    • -1.21
    • -3.54%
  • FIEG
    (FI Enhanced Global High Yield ETN Linked to MSCI World High Dividend Yield USD)
    • $126.92 USD
    • -3.30
    • -2.6%
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