DWS Group’s net flows rose €11.6bn in the second quarter of this year, totalling to €18.2bn in the first half of the year. When cash and advisory services are added, DWS recorded net flows of €35.8bn for the first half of the year, a new record for the firm.
This was paired with a surge in assets under management, which also peaked at €1.2trn in the second quarter, compared to €1.1trn in the first quarter.
“This was primarily driven by net new assets in passive, including Xtrackers and supported by net inflows in Active SQI and Active Multi Asset,” according to the results.
Active asset management generated roughly €0.5bn in flows in the second quarter, with active equity delivering €1.1bn, its best result in six years. There was further €1.1bn added to active SQI strategies. Meanwhile, active fixed income saw outflows of €1.6bn and active multi-asset was flat.
Alternatives saw net outflows of €0.7bn driven primarily by infrastructure and real estate funds. However, the results noted that most of the infrastructure net flows were due to capital being returned to fund holders following asset sales by two funds.
Markus Kobler, CFO at the firm, added: “Success in asset management is built on disciplined resource management and the ability to grow revenues organically.
“In Q2, we continued on this path, with management fees up 5% quarter-on-quarter and 13% year-on-year, driving 21% EPS growth and a cost-income ratio of 57.2% in H1,” he said.
That said, revenues fell by about 6% in Q2, with the increase in management fees accompanied by higher other revenues. However, in the first half, revenues were still up by about 6%, mostly due to higher management fees and increased performance and transaction fees.
See also: Aberdeen half-year results: Profits and revenues rise but net outflows triple
