AmazonScience/document-haystack

1In 2023 we reported a profit before tax of € 777 million, a decrease of € 88 million, or 10%, 2compared to prior year. 3Total net interest and non-interest income was € 2,614 million, 4% lower compared to 2022 4driven by lower management fees. Management fees were impacted by negative market 5developments, margin compression and the composition of the net inflows in Alternatives. 6Performance and transaction fees remained essentially flat. Other revenues were 7€ 171 million, an increase of € 40 million compared to 2022, primarily driven by net interest 8income and favourable development of fair value of guarantees as well as deferred 9compensation hedge. This was partly offset by lower mark to market valuations of co-10investments as well as lower revenue contributions from our investments in Harvest Fund 11Management Co Ltd and MorgenFund GmbH.12Non-interest expenses of € 1,837 million were essentially flat compared to 2022. 13Compensation and benefits costs increased by € 20 million mainly driven by an increase in 14the size of the workforce. General and administrative expenses were € 39 million higher 15compared to 2022, with an increase in platform transformation charges as well as higher 16banking servicing costs, partly offset by lower expenses related to legal services and lower 17costs for our outsourced functions to Deutsche Bank Group entities. Non-operating costs 18were significantly lower due to an impairment of intangible assets related to 2022.19Assets under management is a key factor affecting the results of operations as a significant 20percentage of management fees is charged as a proportion of AuM. Assuming management 21fee margins remain unchanged, an increase in the level of average AuM will generally lead to 22an increase in revenues.23Assets under management were € 896 billion as of 31 December 2023, an increase of 24€ 75 billion compared to 31 December 2022. The increase was driven by a positive market 25impact of € 57 billion and net flows of € 28 billion, party offset by foreign exchange impact of 26€ (12) billion. Net inflows were driven by Passive including Xtrackers, Active Cash and Active 27Multi Asset, partly offset by net outflows in Active Equity and Active Systematic and 28quantitative investments.29FX impact represents the currency movement of products denominated in local currencies 30against the euro. It is calculated by applying the change in FX rate to the ending period assets 31and is calculated monthly.32Market impact primarily represents the underlying performance of the AuM, which is driven 33by market effects (equity indices, interest rates, foreign exchange rates) as well as fund 34performance. The market impact in the period led to an increase in AuM of € 57 billion 35particularly in our Active Equity, Active Fixed Income and Passive products including 36Xtrackers.37Other includes the impact of acquisitions and divestment as well as reclassifications of asset 38classes.39AuM development in 20234031 Dec 2022 2023 31 Dec 202341in € bn. AuM Net flows FX impact Performance Other AuM42By asset classes:43Active Equity  99  (2)  (1)  11  0  107 44Active Multi Asset  68  4  0  3  1  76 45Active Systematic and 46quantitative investments  64  (2)  0  5  (1)  66 47Active Fixed Income  194  0  (3)  12  0  203 48Passive including Xtrackers  199  21  (4)  31  0  247 49Alternatives  118  0  (2)  (5)  0  111 50Total exluding Cash  741  23  (10)  57  1  811 51Active Cash  80  6  (2)  1  0  85 52Total  821  28  (12)  57  1  896 53        54To our Shareholders Summarised 55Management Report56Consolidated 57Financial Statements Compensation Report Corporate Govern-58ance Statement59Supplementary 60Information DWS 2023 Annual Report61 62Our Performance Indicators6314 Our Financial Performance