German asset manager DWS returned to positive inflows in the first quarter after it was hit by nearly €10 billion of outflows in the final three months of last year.
The firm saw $8.8 billion of inflows in Q1 this year, which compares with €9.6 billion of outflows in the final quarter of 2022.
DWS, which has been troubled by greenwashing allegations, saw assets under management increase to €841 billion – an increase of €20 billion from the previous quarter – driven partly by the inflows.
However, revenues were down 12% year-on-year to €610 million due to lower performance and transaction fees, which DWS said was the result of the “current market environment”.
Ultimately, the firm’s profit before tax was down 26% year-on-year to €206 million – but cost reductions have been applied, including “restructuring” headcount and “delayering” the organisation.
Stefan Hoops, CEO, said: “In a turbulent market environment, clients trusted our performance and advice. Thanks to continued client demand, we returned to net inflows and increased assets under management in the first quarter.”
Hoops added that DWS gathered assets from institutional and retail investors, including in the firm’s Xtracker ETF brand and €1.4 billion of inflows into ESG products.
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