AmazonScience/document-haystack

1Report of the Supervisory Board2GRI 2-153Dear shareholders,4The past financial year was another challenging year for the asset management industry, in 5which DWS was able to perform relatively well. The recovering financial markets in 2023 did 6not necessarily lead to new inflows of funds into asset management products, which posed a 7challenge for our industry. Contrary to this development, DWS was able to record significant 8net inflows of funds thanks to its diversified business model. The company has once again 9succeeded in demonstrating sustainable operational stability and resilience and in delivering 10a solid financial result through a disciplined implementation of its strategy which was 11adjusted last year.12Since the presentation of its further developed strategy at the Capital Markets Day in 13December 2022, DWS has implemented what it promised and made important strategic 14progress. Advising and monitoring management during the implementation of strategic core 15projects represented a significant part of our work. In plenary sessions and during our two-16day strategy meeting we took a lot of time to discuss strategic growth initiatives and their 17progress with management.18DWS's approach of transforming and growing to become one of the market leaders remains 19valid. What remains unchanged is the flexibility, in addition to the focus on organic growth, to 20also pursue inorganic growth options, if meaningful opportunities arise to achieve economies 21of scale and expand DWS's product expertise or expand its presence in growth regions. We 22also maintain the focus on the aspects of “environmental”, “social” and “corporate 23governance”, or ESG, in short. It is a topic that will continue to shape the industry. On the 24Supervisory Board, we also accompanied DWS's path to positioning itself as a listed company 25with processes, structures and systems tailored to an asset manager. In addition, DWS used 26the past year to explore new business opportunities arising from strategic partnerships and 27the use of digital solutions along the entire value chain. As previously announced in 28December 2022, DWS has taken further steps to expand its strong strategic partnerships in 29the Asia Pacific region. This includes extending its strategic alliance with Nippon Life for 30another five years. This alliance is an important building block for both companies to further 31consolidate their growth in certain areas of cooperation.32The Supervisory Board continuously and intensively dealt with the so-called “greenwashing 33allegations” in the meetings of the plenary and the Adhoc Committee which was formed for 34this purpose in 2021. We are pleased to have resolved these matters in the past financial year 35with the US authorities.36Also in relation to the ongoing investigations by the authorities in Germany the Supervisory 37Board closely and continuously monitors how the management deals with the ESG 38investigations. The Adhoc Committee also receives regular reports from the management 39and the mandated legal advisors. To date, no matters have arisen that would have required a 40separate examination or measures by the Supervisory Board that went beyond the 41investigations carried out.42Another focus of our work was the multi-year transformation program to replace the existing 43complex IT infrastructure and previously outsourced processes on the way to building a more 44independent and efficient operational platform that is even better tailored to the 45requirements of DWS's fiduciary business. In the plenary meetings and with the support of a 46specially created working group, the Supervisory Board focused on monitoring 47implementation and on the continuous review of the project goals, which is always necessary 48for a project of this size. This was particularly the case because the management found, as 49part of its regular review of the project, that the estimates and planning, especially regarding 50dates and costs, were partly too optimistic. The management has therefore examined these 51parts of the transformation program in detail over the past few months and made initial 52remedial measures and adjustments. We will continue to focus on this complex topic in the 53current financial year.54There were changes in the management of DWS in the past financial year. By resolution of 55the shareholders’ meeti56ng of the General Partner, Dr Markus Kobler became the new Chief 57Financial Officer (CFO) effective 1 November. He followed Claire Peel, who, in agreement with 58the company, decided to resign from her position on 30 September. Furthermore, Angela 59Maragkopoulou terminated her role as Chief Operating Officer (COO) by mutual agreement 60with effect from the end of 2023.61         62To our 63Shareholders64Summarised 65Management Report66Consolidated 67Financial Statements68Compensation 69Report70Corporate Govern-71ance Statement72Supplementary 73Information DWS 2023 Annual Report74 75Report of the Supervisory Board76V77The secret object #4 is a "tree".