DWS Group's assets under management grew 0.7% over the third quarter to €692 billion ($803 billion), despite net outflows due to U.S. tax reform-related redemptions.
A financial update Wednesday said assets fell 2.7% compared with figures for Deutsche Asset Management — the previous name of the firm — as of Sept. 30, 2017.
Net outflows totaled €2.7 billion for the three months ended Sept. 30, which DWS said was due predominantly to redemptions of €3.2 billion for low-margin allocations connected to U.S. tax reform.
Net outflows for the quarter ended June 30 were €4.9 billion, and for the quarter ended Sept. 30, 2017, net inflows totaled €4 billion.
Total revenues fell 0.3% to €574 million for the quarter. Total net revenues for Deutsche Asset Management were €628 million in the year-earlier quarter.
Net income was €121 million for the three months ended Sept. 30, compared with €92 million for the quarter ended June 30. Net income for the quarter ended Sept. 30, 2017, was not available, but income before tax for that quarter was €195 million.
Over the third quarter, DWS also agreed on a strategic alliance with Tikehau Capital, deepening a relationship following the alternatives firm's purchase of a minority stake in DWS' initial public offering this year. The two firms are looking to collaborate on alternative investments.
DWS also agreed to expand its existing work with Generali Group, becoming one of the insurer's preferred money managers.
