DWS was on pace to grow in 2008 despite the down market. DWS had $12.5 billion in gross sales in the first 10 1/2 months of 2008, matching its total for all of 2007. Hensler views that as testament to the firm's ability to resonate with investors in both bull and bear markets.
DWS actually has a long history of innovation, given the pedigree of its components. DWS is an amalgamation of Bankers Trust and innovators Scudder Investments and Kemper Financial. Scudder was the first firm to launch an international mutual fund in 1953 and Kemper Investments launched the first technology fund, called the Television Fund, in 1948. After its inception in 2005, DWS launched a structured notes product for advisors in 2006. A year later, it unveiled a climate change fund that capitalizes on how regulators and companies are adjusting to the threat of global warming. It also launched an alternative asset allocation fund, which is a traditional mutual fund that has eight different alternative investment classes. The alternative investment fund, the firm's top-selling fund, was launched in July 2006 and, as of July of 2008, had $500 million under management.
The firm continues to battle net outflows, with $106 million in net outflows in the second quarter-though that was an 89.4% reduction over the $1 billion in net outflows the firm suffered in the first quarter.
Hensler says his first challenge in building U.S. business was to convince his own sales staff of DWS's capabilities. Like Henry V rallying his troops, he told them they were part of Deutsche Bank, with more than 700 investment professionals, $292.5 billion under management and innovative products that include alternative investments and structured notes. His next job is to convince the rest of the market.
"We
got everyone passionate. That was step one," Hensler says. "The next
step is to convince the rest of the market that [we] are a competitive
threat."