DWS hits record €1.19trn AUM as restructuring drives €24.8bn inflows

DWS Group amassed a record €1.19 trillion in assets under management during the second quarter after net inflows surged to €24.8 billion. The performance confirms that a broad front-office reorganization completed earlier this year is translating into tangible commercial momentum for the German asset manager.

The inflow acceleration was broad-based across both geographies and client segments. The Americas contributed €10.8 billion and Germany added €10.5 billion, while EMEA excluding Germany brought in €3.2 billion and APAC generated €3 billion. Institutional clients contributed €5.9 billion, buoyed by mandate wins in Asia-Pacific alternatives and U.S. cash products.

However, the primary engine for growth was the newly rebranded private wealth division, which generated €18.9 billion in net flows. This marked the unit's strongest quarterly result since DWS's initial public offering, signaling that the strategic pivot to separate retail and institutional channels is resonating with high-net-worth clients.

On the product side, passive investments continued to dominate, with Xtrackers ETFs attracting €11.7 billion. Chief Executive Officer Stefan Hoops noted that active equity finally returned to positive flows. "Long-term net flows were significantly higher quarter-on-quarter," Hoops said, adding that the period yielded DWS's highest net new revenues from client inflows since the company began tracking the metric.

Alternatives posted €700 million of outflows, though this was largely a mechanical effect rather than a loss of client demand. The outflows primarily reflected €1.3 billion in capital returned to investors following infrastructure asset realizations.

The influx of capital drove a 4% year-over-year increase in second-quarter revenue to €773 million, while net income climbed 11% to €237 million. For market participants, the critical takeaway is that management maintained its 2026 targets for 10% to 15% earnings per share growth, flat costs, and a 55% to 57% cost-income ratio. Sustaining those margin targets while integrating a reorganized front office and absorbing record inflows would signal durable operating leverage.