Deutsche Bank AG's DWS unit, Germany's biggest mutual fund company, said the assets in one of its investment funds have fallen by 30 percent since the end of July as subprime mortgage losses roiled credit markets.
Assets in the DWS ABS Fund fell to 2.1 billion euros ($2.9 billion) from 3 billion euros, mostly as a result of client redemptions, DWS spokeswoman Anke Hallmann said today. The fund, registered in Luxembourg, has no investments in U.S. subprime- related debt and hasn't halted withdrawals, she said.
Investors are shunning bonds backed by home loans after late mortgage payments by U.S. borrowers with poor credit histories rose to the highest since 2002. BNP Paribas SA, France's biggest bank, contributed to financial market turmoil yesterday by halting withdrawals from three investment funds because it couldn't value their holdings.
``This could get worse before it gets better,'' said Ben Yearsley, a financial adviser at Hargreaves Lansdown in Bristol, England. ``There could be many more problems yet to come for bond funds.''
Cominvest, Commerzbank AG's fund unit, isn't limiting redemptions from any funds in the face of withdrawals from three asset-backed security investments, Chief Investment Officer Ingo Mainert said today in a statement. Cominvest isn't directly invested in the U.S. subprime market, he said.
Deutsche Bank's shares fell 3.28 euros, or 3.3 percent, to 95.32 euros by 3:22 p.m. in Frankfurt, after falling as much as 7 percent. The 65-member Bloomberg Europe Banks and Financial Services Index declined 3.5 percent.
Deutsche Bank last year was criticized by politicians and competitors for freezing its German open real-estate fund rather than allowing investors to make withdrawals. The bank froze the fund in December 2005, citing the need to revalue properties, and later devalued it by 2.4 percent before reopening and selling real estate to make up for the lost returns.
Dutch investment bank NIBC Holding NV said yesterday that it lost at least 137 million euros on U.S. subprime investments this year.
Assets in the DWS ABS Fund fell to 2.1 billion euros ($2.9 billion) from 3 billion euros, mostly as a result of client redemptions, DWS spokeswoman Anke Hallmann said today. The fund, registered in Luxembourg, has no investments in U.S. subprime- related debt and hasn't halted withdrawals, she said.
Investors are shunning bonds backed by home loans after late mortgage payments by U.S. borrowers with poor credit histories rose to the highest since 2002. BNP Paribas SA, France's biggest bank, contributed to financial market turmoil yesterday by halting withdrawals from three investment funds because it couldn't value their holdings.
``This could get worse before it gets better,'' said Ben Yearsley, a financial adviser at Hargreaves Lansdown in Bristol, England. ``There could be many more problems yet to come for bond funds.''
Cominvest, Commerzbank AG's fund unit, isn't limiting redemptions from any funds in the face of withdrawals from three asset-backed security investments, Chief Investment Officer Ingo Mainert said today in a statement. Cominvest isn't directly invested in the U.S. subprime market, he said.
Deutsche Bank's shares fell 3.28 euros, or 3.3 percent, to 95.32 euros by 3:22 p.m. in Frankfurt, after falling as much as 7 percent. The 65-member Bloomberg Europe Banks and Financial Services Index declined 3.5 percent.
Deutsche Bank last year was criticized by politicians and competitors for freezing its German open real-estate fund rather than allowing investors to make withdrawals. The bank froze the fund in December 2005, citing the need to revalue properties, and later devalued it by 2.4 percent before reopening and selling real estate to make up for the lost returns.
Dutch investment bank NIBC Holding NV said yesterday that it lost at least 137 million euros on U.S. subprime investments this year.
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