GLOBAL – Deutsche Asset Management (DeAM) has launched BrokerMerit, a propriety internet based system designed to rate, rank and review the brokers that DeAM uses worldwide.
DeAM believes that its new system will optimise its broker relationships by generating greater transparency. DeAM currently pays as much as US1bn (€1.2bn) in broker commissions on behalf of its clients each year.
Its launch has come at a time when the industry is scrutinising the issue of commissions.
Says Gunner Burkhart, DeAM’s global head of trading and broker relationship management: “our clients expect that we use commission judiciously to maximise returns and we wish to make this process far more transparent.”
Furthermore, the system is intended to reduce the number of brokers Deutsche uses, which has been as many as 550 in the past.
The system works by aggregating the views of all those at DeAM who receive a service on the sell-side. A snapshot of the views is taken each month, from which a report is generated outlining what is considered the most valuable and important aspects of the brokerage service.