GERMANY – Commerzbank has created a new management board for its asset management division and named a new chief executive for German fund arm Cominvest in a bid to revive the division’s sagging fortunes.

Commerzbank said Achim Kassow, the bank’s asset management head, would lead the new five-member board. It added that it would include Sebastian Klein, who had left his job as private banking head to become Cominvest’s new chief executive.

Kassow said: “Sebastian Klein has produced sustained growth in private banking, strengthening Commerzbank’s number three position in this fiercely contested segment…In the future, stronger emphasis will be placed on innovation in asset management.”

Other members of the board are Detlev Dietz, its new chief operating officer, Frank Pörschke, head of Commerzbank’s real estate fund arm and Friedrich Schmitz, who will take charge of Commerzbank’s foreign fund operations, which include Jupiter in the UK and CCR in France.

The shake-up comes just two months after the division reported a 45% decline in pre-tax profit for the first half. The steep profit decline was accompanied by €219m in institutional outflows at Cominvest.

Industry sources said Commerzbank’s asset management division continued to suffer outflows in the third-quarter. The Financial Times Deutschland reported this morning that ADIG, the bank’s retail fund arm, had €800m in outflows between January and September.

Commerzbank will publish its results for third quarter on November 3.

The sources added that the appointment of Klein, a close associate of Kassow, was part of Commerzbank’s wish to “take more direct control of asset management” in the bid to revive its fortunes.

Separately, Cominvest said it had hired Holger Desch as a senior relationship manager responsible for acquiring and looking after international insurers. Desch, 51, joins Cominvest from Delta Lloyd Investment Managers.

And Bastian Schmidt has joined as a director responsible for relationships with investment consultants. Cominvest has €28bn in institutional assets under management.