Deutsche Bank AG’s asset-management arm reported outflows of nearly €20 billion in 2022 and a €107 billion drop in managed assets as the firm battles with investor confidence and souring market conditions.
(Bloomberg) — Deutsche Bank AG’s asset-management arm reported outflows of nearly €20 billion in 2022 and a €107 billion drop in managed assets as the firm battles with investor confidence and souring market conditions.
DWS Group’s clients pulled €19.9 billion ($21.9 billion) in 2022, according to a statement on Thursday. That missed the €18.03 billion consensus of outflows forecast by analysts polled by Bloomberg. Assets under management fell to €821 billion euros in 2022 from €928 billion at the end of the previous year.
The results stand in contrast to the previous quarter, which saw a brief pause in outflows. The decrease in assets under management was mainly driven by negative market developments, while exchange rate movements had a positive impact, the firm said in its statement.
The asset manager is still being investigated by German regulator BaFin as well as the Securities and Exchange Commission and the Department of Justice in the US for allegedly misrepresenting its ESG work. DWS has rejected allegations of greenwashing.
Market volatility and worries about the German economy have also led to investor caution, the company said. DWS said it will propose an increased dividend of €2.05 per share for the 2022 financial year.
DWS said clients pulled €1.6 billion in the fourth quarter and they were largely focused on fixed income funds, cash and passive. The fixed-income sector was hit by rising interest rates and a surge in inflation during 2022, roiling markets.
DWS is planning to build out its alternatives business, and pulled in €600 million from clients last year. The firm sold its private equity secondaries business to Brookfield Asset Management Ltd. this week in a bid to focus more alternatives.
DWS said it plans to mobilize private capital of up to €20 billion by 2027 to address the need for transformation across Europe.
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