Net outflows were recorded across active and passive strategies, although the firms' alternatives and cash strategies saw net inflows, the update said. "While in January and February, DWS recorded strong inflows across all three business pillars, including significant inflows into active equity, the coronavirus pandemic was an inflection point," the update said.
Active money management excluding cash recorded net outflows of €5.6 billion in the first quarter, compared with €4.9 billion in net inflows in the quarter ended Dec. 31. Active equity inflows of €1.7 billion were more than offset by other active strategies, which "were unable to avoid outflows as a result of the impact of the pandemic on market sentiment," the update said.
Passive strategies recorded €2 billion in net outflows in the first quarter, compared with €6.2 billion in net inflows in the previous quarter. The loss was driven by net outflows from exchange-traded products, but institutional business recorded "slightly positive net inflows," the update said. Figures were not provided.
Alternatives strategies saw net inflows of €1.5 billion, vs. €3.7 billion in net inflows for the three months ended Dec. 31.
Total revenue was €524 million, down 23.7% for the quarter and down 1.9% for the year. Profit before tax fell 32.7% over the first quarter, but grew 17% compared with the same quarter in 2019, to €179 million.