According to a newspaper report, the fund company DWS, which belongs to Deutsche Bank, has recorded large increases in the funds collected through so-called advisory mandates.

By including such special mandates, DWS has recorded strong increases in inflows and assets under management, the "Financial Times" reported on Wednesday, citing data from insiders. Assets from such consultations, in which an asset manager presents their views on asset formation, for example, but the client makes the final investment decisions, would have accounted for at least one fifth of all non-cash inflows at DWS between June 2018 and March 2024.

The inflows are significant as they are among several factors relevant to executive bonuses, the newspaper reported. Since the IPO, bonuses for executives and other employees have been directly linked to net inflows. DWS did not disclose that assets under management (AuM) included assets managed by third parties until the end of 2022. DWS said in a statement about the report: "Although there is no general accounting standard for AuM, we believe that our definitions and reporting are in line with our competitors' reporting." The annual reports and financial disclosures have always been accurate.

It was clear from the outset that DWS's offering also included advisory services, the fund company explained. Net funds received from such advisory services had already been included in the total net funds received before the IPO. DWS is working on bringing more transparency to the reported assets under management and net inflows. The inflows from advisory services, and in particular the inclusion of market movements in their calculation, had not had a significant impact on management remuneration in any year.

(Reporter Tom Sims; Edited by Frank Siebelt; Edited by Myria Mildenberger; If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)