Deutsche Bank is exiting the Russian fund management market, having sold its subsidiary, Deutsche UFG Capital Management to the Russian asset management group, ATON.

Frankfurt-headquartered Deutsche Bank is exiting the Russian fund management market, having sold its subsidiary, Deutsche UFG Capital Management to the Russian asset management group, ATON. The transaction is subject to the approval of the Federal Antimonopoly Service of the Russian Federation.

“Deutsche Bank has reviewed its business strategies in Eastern Europe, including Russia. This transaction is part of our continual efforts to maintain the most appropriate business mix,” said Igor Lojevsky, vice chairman of Eastern Europe for asset & wealth management and corporate banking & securities, Deutsche Bank AG in a statement today.

The statement did not include any details pertaining to the price of the acquisition.

ATON said the deal was part of its expansionary strategy and that the deal will bring its mutual fund assets to 3.8 billion rubles ($114,7 million), making it the sixth-largest mutual fund provider in the Russian market. ATON’s total client assets will be an estimated 118.4 billion rubles following the transaction.

DUCM, which is Deutsche Bank’s asset manager in Russia, has a product range including investment funds and discretionary portfolio management for private and institutional clients. With the acquisition, ATON will take over management of the DUCM clients and combine its current asset management team with those of the former Deutsche subsidiary.

Deutsche became the sole owner of Deutsche UFG Capital Management in 2011, three years after acquiring an initial 40 per cent stake. It merged the unit with its Russian private wealth management unit last year to trim costs. Deutsche Bank’s investment banking business in Russia, which includes UFG, currently has $1.7 billion assets under management.