Deutsche Bank's DWS Reports Slowing Net Inflows Amid Ongoing Market Volatility

DWS Group Sees Slowdown in Net Inflows Amid Market Volatility

DWS Group, the asset management arm of Deutsche Bank AG, experienced a slowdown in net inflows in the first quarter of the year due to the impact of the Iran war on global markets. The company posted net long-term inflows of €6.6 billion in the three months through March, a significant decline from the €8 billion recorded in the previous quarter and €11.7 billion in the same period a year earlier.

The slowdown in inflows can be attributed to the firm's lower-margin Xtrackers funds, which continue to drive the majority of the flows. Despite the challenges, DWS reported a solid start to the year, but the geopolitical environment took a turn for the worse in late February, heightening uncertainty, increasing volatility, and putting pressure on markets, energy prices, and inflation.

While the €6.6 billion in inflows may seem substantial, it falls short of the average quarterly amount required to meet DWS's target of pulling in more than €160 billion from 2026 to 2028. However, total assets under management rose 0.7% from the fourth quarter to €1.09 trillion, indicating a steady growth in the firm's overall assets.

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DWS has been working to reduce costs, with a 5% reduction from the same period last year, driven by lower outlays for technology services and compensation. The company has reaffirmed its full-year target of 10% to 15% growth in earnings per share, with Chief Executive Officer Stefan Hoops aiming to position the firm as the preferred asset manager for institutional investors plowing money into Europe.

In recent years, DWS has been focused on cutting costs and building out its alternatives unit, which has seen mixed client flows. The firm's shares have responded positively to these efforts, with a 1.6% increase since the beginning of the year, following a 40% rally in 2025.