Passives and cash save DWS flows in Q2'20

On the 07/29/20 at 11:32AM


Adrien Paredes-Vanheule

European investors were the main contributors to Deutsche Bank's arm flows during the second quarter of 2020.

Deutsche Bank's investment arm DWS posted €8.7bn net inflows in the second quarter of 2020. Investor subscriptions - €5bn from retail and €3.7bn from institutional clients respectively - were rather observed in passive strategies (+€6.5bn) and cash management strategies (€6.3bn). Within the active management pocket, DWS's equity funds boarded €1bn in net new money whilst other segments suffered outflows (-€4.4bn for fixed income, -€0.6bn for multi assets, -€0.2bn for systematic and quant strategies) or did not collect (alternatives).

The firm however argued that redemptions seen in multi-assets and fixed income came primarily from institutional mandates. Also almost all inflows came from European investors, excluding Germans, as they poured €9.5bn into DWS products over the quarter. The firm also stressed that during the first half of 2020, more than 50% of the €6.2bn net flows recorded went into ESG-dedicated funds. 

The manager's overall assets under management are caught up yet with their pre-Covid-19 crisis level, standing at €745bn as of end June 2020 (vs. €767bn in December 2019). Management fees and other recurring revenues declined 8% quarter-on-quarter consequently to lower average AuM during Q2'20. DWS's net income reached €122m in Q2'20. The investment branch of Deutsche Bank remains committed on achieving its cost income ratio under 65% in  2021 (65.7% as of end of June 2020). It will propose a dividend of €1.67 per share at the firm's next annual general meeting scheduled on 18 November 2020.