DWS

DWS exhibits a mix of strengths and ongoing challenges, resulting in a Parent rating of Average.

The firm maintains a presence across all major market segments, including equities, fixed income, multi-asset, and alternative investments. While long-term outperformance is important, asset gathering and profitability are also key priorities. Many of its largest funds are managed by experienced, long-tenured managers who have delivered solid results, but the lineup also includes a substantial number of middling offerings. Despite periods of unsteady leadership, the firm has maintained a good degree of stability within most of its investment teams and offers genuine strengths across its vast product lineup, with fees that remain fairly competitive. Through its Xtrackers platform, DWS has built a robust passive franchise, representing 34% of assets under management as of June 2025. In the passive space, the firm seeks to differentiate itself by responding swiftly to market trends and themes rather than focusing solely on cost leadership. As a result, most new product launches are now concentrated in the exchange-traded fund space, with plans to expand the number of active ETFs, while the active fund range has been streamlined to some degree. Initiatives are underway to enhance collaboration and performance across the active lineup, which has been lackluster, particularly in equities. The firm has revised its incentive structures, placing greater emphasis on performance relative to peers and introducing clearer differentiation in variable compensation based on investment outcomes. Performance measurement centers on one- and three-year results, but the focus on peer-relative performance and achieving high Morningstar ratings also incorporates a longer-term perspective—extending up to 10 years for more established funds.

The firm has faced allegations of greenwashing in recent years, resulting in regulatory investigations and the resignation of the CEO. While authorities concluded their investigations in the US (2023) and Germany (2025) with relatively minor fines, the greenwashing case has posed significant reputational and regulatory challenges for DWS. In response, the firm has reevaluated and enhanced its ESG documentation and external communications. Governance has been strengthened through the establishment of an independent Sustainability Oversight Team to ensure proper implementation and adherence to ESG standards.

Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, DWS (Branding Name ID: BN000008JT), is covered by Morningstar Manager Research.