Thank you very much, operator, and a good morning from sunny Frankfurt. This is Oliver Flade from Investor Relations, and I would like to welcome everybody to our earnings call for the first quarter of 2026.

Now before we start, I would like to remind you, as usual, that the upcoming Deutsche Bank analyst call will outline the asset management segment's results, which have a different parameter basis to the DWS results that we are presenting now. I'm joined, also as usual, by Stefan Hoops, our CEO, and Markus Kobler, our CFO.

Stefan will start with some opening remarks as well as some closing remarks, and Markus will take you through the main part of the presentation. For the Q&A afterwards, please could you limit yourself to the two most important questions so that we can give as many people a chance to participate as possible.

I would also like to remind you that the presentation may contain forward-looking statements, which may not develop as we currently expect. I therefore ask you to take note of the disclaimer and the precautionary warning on the forward-looking statements at the end of our materials.

With that, I will now pass on to Stefan.

Thank you, Oliver. For the second time in a row, our Head of Investor Relations muted me just after my, "Thank you, Oliver."

Thank you, Oliver. Good morning, ladies and gentlemen, and welcome to our Q1 2026 earnings call.

It is not easy to describe the environment we are in right now. It is clearly a difficult environment for the world, and an unpredictable one.

Who would have thought a couple of months ago that the U.S. would block the Strait of Hormuz?

The best description I've heard was this: it feels like we are currently living through what will be the toughest part of the history exam for the class of 2085. Now for asset managers, this environment is highly relevant for two reasons.

First, it is fertile ground for active asset management. The more volatile and dispersed markets become, the stronger and more opposing views tend to be.

Honestly, if you cannot create alpha in this environment, then when? That is why I'm pleased with our investment performance over the last few months, particularly across our large retail funds.

Our Top Dividende fund, for example, was up 8.46% as of 31st of March, which is ahead of major indices. That has supported nice inflows and higher management fees through above-market growth in assets under management in this fund.

Other flagship funds like Akkumula and Vermögensbildungsfonds I have also performed well, while Concept Kaldemorgen has managed volatility effectively and has moved into performance fee territory in Q2. Second, in an environment like this, it is critical to operate at a low cost-income ratio.

This is exactly the kind of environment we've prepared for and worked towards. As I said when I walked you through the logic two years ago, the cost-income ratio for an asset manager is similar to the leverage ratio for banks.

It is a measure of how well you are prepared for a weaker environment. A high earnings per share with a high cost-income ratio is dangerous because volatility can impact the bottom line very quickly.

That is why we focused on maximizing earnings with the binding constraint of a low cost-income ratio. Operating at a comparatively low cost-income ratio leads to more earnings stability and allows us to keep investing in growth, organically and potentially inorganically.

Markus will come back to that in more detail. Against that backdrop, we delivered a solid first quarter.

Earnings per share came in at €1.32 and above consensus, although this was largely driven by the timing of our PEIF II performance fees. Revenues were €821 million, up 9% year-on-year, while net income increased to €265 million, up 33% year-on-year.

Our reported cost-income ratio improved to 54.1%, down 8.1 percentage points year-on-year, and our cost base of €444 million was encouraging, underlining that cost discipline remains firmly in place. To summarize, costs were a bit better, flows were a bit weaker given a tough March, and performance fees came in earlier than expected.

Markus will go through that in more detail. For the full year, we reconfirm our target.

Markets have shown a V-shaped recovery over the course of April. This means that our assets under management are now back at broadly the same level we were at the end of February.

At the same time, there is still a revenue impact from the interim volatility. The AUM dent in March and April amounted to around €40 billion, which translates into a revenue gap of about €20 million.

Of course, we need to remain mindful of the current environment. The level of uncertainty remains elevated, warranting a degree of caution.

Fortunately, if you recall our last quarterly earnings call, we had full focus on additional cost levers, and that has now paid off very nicely. We are ahead of plan following the actions we took earlier in the year, allowing us to tighten our cost guidance to around €1.80 billion for the year, helping to offset the revenue gap.

At the same time, performance fees have already been delivered on a large part of PEIF II, giving us confidence that we will be at the upper end of our 4% to 8% of revenues guidance range. Taken together, we reconfirm our target of 10% to 15% EPS growth for the full year, assuming markets remain constructive.

Now before I hand over to Markus, I'm pleased to tell you that Markus has just extended his contract at DWS and will be my partner for at least another three years. Now with that, over to Markus.

Thank you, Stefan. It's a privilege.

It's one of the most exciting CFO positions in the industry. I think we have a duty also as a European-based asset manager to succeed.

More to come. Thank you, and good morning, ladies and gentlemen.

Before I take you through our financial performance, let me start by saying that I hope you are all navigating this period well. As Stefan already mentioned, the environment we are in right now is clearly not an easy one.

It is complex, volatile, and to a certain extent, unpredictable. With that, let me turn to our financial snapshot for the first quarter.

Total assets under management increased by 8% year-on-year and flat quarter-on-quarter to €1 trillion and 93 billion. Total revenues stood at €821 million, representing a 9% increase year-on-year and 9% decrease quarter-on-quarter.

Our total costs decreased 5% year-on-year and 9% quarter-on-quarter, and totaled €444 million. This resulted in a reported cost-income ratio of 54.1% for the first quarter of 2026.

As a consequence of our strong operating leverage, our net income increased by 33% year-on-year and decreased 10% quarter-on-quarter, reaching €265 million. Moving to our client dynamics during Q1.

Whereas we saw a solid start into Q1 with a healthy flow momentum during January and February, overall activity slowed down in March following the geopolitical developments and the resulting market uncertainty. Clients remain cautious, with a focus on liquidity and defensive positioning.

Overall, we reported net flows of €11 billion and long-term net flows of €6.6 billion. Total retail flows stood out with €12.9 billion of net flows, marking the 13th consecutive quarter of positive flows, demonstrating the resilience of our franchise despite elevated volatility.

Client demand remained supported by our digital distribution channels. On the institutional side, we reported net outflows of €1.9 billion.

Client activity in the institutional space was more restrained in March amid heightened market uncertainty. This was less a question of underlying demand and more one of timing, with clients taking a more cautious and selective approach to new commitments while prioritizing capital preservation.

Looking at regions. In the Americas, we saw net outflows of €5.1 billion, mainly impacted by institutional cash outflows at the end of March.

These were driven by seasonal tax payment effects. However, we already see a reversal of these flows in April.

Total net flows into our home market Germany amounted to €7.9 billion, driven by an ongoing demand for passives, including Xtrackers. EMEA excluding Germany saw €7.7 billion of net flows, demonstrating strong client engagement across the region as clients are increasingly receptive to European investment opportunities as well as for our high-margin retail products.

APAC reported €4.5 billion of net flows in the first quarter and saw continued asset rotation to higher-margin alternative products. Moving to the quarterly highlights within our active business.

The first quarter reflects a more volatile market backdrop, which impacted overall active flows, while underlying client demand remained strong across selected areas of our active platform. Active assets under management stood at €458 billion, broadly stable quarter-on-quarter.

Active equity reported net outflows of €1.2 billion, primarily reflecting client de-risking in response to heightened market volatility. Multi-asset reported positive net flows of €0.3 billion across both retail and institutional channels, including continued demand for our flagship fund, Concept Kaldemorgen.

SQI was a clear beneficiary of the current market environment with continued positive momentum, reporting €1.6 billion of net flows. This was mainly driven by white-label partnerships as well as inflows into quantitative strategies, including a significant mandate in the Middle East region.

Fixed income flows were impacted by specific institutional mandate losses in the U.S. and APAC.

At the same time, retail demand remained positive, particularly for DWS Floating Rate Notes. Product innovation remained supportive for our active franchise.

Recent launches include our DWS Invest Focus Europe and two new active Xtrackers UCITS ETFs. Moving to our Xtrackers business.

Passive, including Xtrackers, faced a demanding quarter and delivered net flows of €6.5 billion, marking the 13th consecutive quarter of positive flows. Assets under management increased to €396 billion, stable quarter-on-quarter.

Overall, our Xtrackers flow momentum was considerably weakened in March after a solid start to the first quarter. The main flow contributor was our UCITS business, which delivered net flows of €3.8 billion.

We saw clients rotating away from traditional benchmarks, which are heavily skewed towards the so-called Magnificent Seven stocks, resulting in positive flows into strategies with benchmarks such as equal weight and World ex-USA. Our Mandates and Solutions business recorded sizeable net flows of €2.9 billion into existing mandates and new fundings, alongside continued momentum in our partnership products, including via digital channels.

Our U.S.-domiciled ETFs saw outflows of €0.2 billion in the first quarter, mainly driven by outflows in high-yield ETFs. However, we successfully launched the Xtrackers Europe Defense Technologies ETF, further broadening our thematic offering.

We also continued to expand our strategic footprint through two new digital distribution partnerships in EMEA, driving further expansion across key European markets. As mentioned in the previous quarter, the contribution of these digital partnerships to our overall Xtrackers flows continues to increase.

Let me turn to our Q1 highlights for our alternatives platform. In Q1, assets under management totaled €112 billion, up 4% quarter-on-quarter.

Our alternatives business delivered overall net flows of €0.2 billion in the quarter, supported primarily by demand for liquid real assets. Infrastructure contributed €0.1 billion of net flows and saw sustained investor interest in our flagship infrastructure strategies.

Infrastructure flows in Q1 were impacted by a significant capital repayment to the fund investors related to two PEIF II asset sales. Capital repayments to fundholders are a usual part within our infrastructure business.

They result from investments and realizations which generate corresponding performance fees at the end of a fund's life cycle, and therefore are in the best interest of our clients and shareholders. In Q2, we expect another capital return to PEIF investors of around €1 billion, which will be accounted as outflows, but are beneficial for our clients, as just outlined.

We further continue to benefit from strong investor appetite for Europe's structural transformation. In liquid real assets, flows remained positive in the quarter, recording €0.6 billion.

We saw a momentum shift in client sentiment, with increasing levels of renewed interest in core tailor strategies, particularly in listed real estate and infrastructure. The sentiment for real estate remains mixed, reporting €0.6 billion of net outflows.

European retail appetite continues to be subdued, while institutional client interest in both Europe and the U.S. stayed resilient.

Private credit remains a strategic growth priority for DWS, with several marketing initiatives progressing during the quarter. Product innovation continued with the launch of three new LRA mandates across infrastructure securities.

We also expanded our LRA offering in the growing U.S. retail market.

Let me move now on to our Q1 revenue development. Total revenues reached €821 million, up 9% year-on-year and down 9% quarter-on-quarter.

Management fees were stable quarter-on-quarter, marking €673 million. Performance and transaction fees totaled €109 million and include a substantial performance fee contribution from our PEIF II fund as a result of further asset sales in Q1.

We do not anticipate further asset sales before the fourth quarter of 2026. As Stefan mentioned, we reiterate that we will be at the upper end of our 4% to 8% of revenues guidance range.

However, we anticipate that the vast majority of remaining performance fees to be booked in Q4 2026. Other revenues amounted to €39 million, which reflect an €18 million net interest income contribution, as well as a €15 million contribution from Harvest.

Let me move on to our cost development. We are particularly proud that our total costs have continued to decrease, which is the result of decisive action and a clear testament to the strength of our sustained and proactive cost management approach.

We identified early on that managing our resources and cost base, especially our discipline-based costs, would be essential to our long-term success. Particularly in times like these, the benefits of this approach become even more crucial.

In Q1, total costs stood at €444 million, down 9% quarter-on-quarter and down 5% year-on-year. Compensation and benefits decreased to €239 million, down 4% versus the previous quarter, mainly driven by lower severance costs and despite one-off carried cost linked to PEIF II performance fees of €16 million.

General and administrative expenses totaled €205 million, a 14% reduction quarter-on-quarter, reflecting seasonal adjustments which typically occur in the fourth quarter. This translates into a reported cost-income ratio of 54.1%, reflecting higher revenues and continued efficiency gains resulting from our disciplined cost management approach.

Before handing back to Stefan, let me provide an update on the focused measures which we outlined in the previous quarter to support our financial targets. As Stefan outlined earlier, our strategic direction remains unchanged, and we continue to execute our strategy with discipline in order to reach our medium-term financial targets.

Let me briefly recap our achievements as well as current progress on the cost side. As discussed in previous quarters, we continue to distinguish between two categories of costs: volume-based costs, which naturally rise alongside organic growth, and discipline-based costs, which we are constantly optimizing as they remain in our control.

While a flat cost base may look similar across companies, the substance can be fundamentally different. A company can deliver flat costs by simply doing nothing, particularly by not investing into growth.

That is not our approach. Our approach focuses on targeted investments through active reallocation of resources in the context of rising volume-based costs, which reflect the ongoing growth of our business.

By counterbalancing these good costs with reductions in discipline cost categories, we maintain strict cost discipline while continuing to invest into growth. We thereby focus on three core levers to further reduce our discipline cost base.

First, human capital management. People remain our key differentiator.

We are further enhancing our human capital management through limited external hires, promoting internal mobility, which has already realized financial and non-financial efficiency gains. Second, target operating model adjustments.

Following a comprehensive review of structures and processes, we have moved decisively from assessment into execution. We continue to simplify organizational setups, streamline selected teams, and sharpen accountability across functions.

This supports a leaner and more effective operating model, fully aligned with our strategic priorities. Third, IT and operations optimization.

We are progressing a range of initiatives focused on automation, artificial intelligence, and process simplification. In parallel, we continue to leverage offshoring and nearshoring capabilities, helping us to improve efficiency, resilience, and service quality across our operations.

Overall, these measures continue to strengthen our operating platform and provide us with further efficiency gains. Those create even more capacity for continued investment into growth initiatives, which is particularly important in a volatile and uncertain market environment as we currently have.

Let me hand over to Stefan to elaborate on our growth initiatives.

Thank you, Markus. As Markus outlined, we feel comfortable with our updated cost guidance, and importantly, with our ability to continue investing in our growth initiatives.

Let me therefore briefly come back to what we said at our full year results and give you a quick update on our five growth priorities. Overall, we are fully focused on executing our growth plan.

Starting with our ambition to be top five in the top five. In the first quarter, we reached an important milestone in our strategic partnership with Nippon Life India Asset Management.

We signed the agreement to invest in their alternatives platform, taking a 40% stake and formalizing our role as a strategic partner in building out India-focused alternatives capabilities. At the same time, we remain interested in increasing our stake in Harvest Fund Management as part of our long-term growth strategy in China.

Second, on Gateway to Europe. We continue to see strong and sustained interest from international investors.

Importantly, the geopolitical volatility we saw in the first quarter has not slowed that momentum. If anything, we continue to see interest deepen, alongside a growing recognition that Europe is coming together in a more coordinated way.

Third, on the future of finance. We continue to make progress in building out our digital capabilities.

During the quarter, our joint venture AllUnity issued a Swiss franc stablecoin, with further initiatives already in the pipeline. Fourth, on Bullish Germany.

Here, we saw important regulatory clarity in the first quarter, with the German Bundestag approving the private pension reform and expected publication of the new law in May. Our dedicated project team is set up to ensure we're well prepared and positioned to capture the opportunity as this develops, particularly as we move towards implementation in January next year.

Finally, on our global housebank approach. Following our last earnings call, we announced the intention to expand our strategic collaboration with Deutsche Bank's Private Bank into the area of discretionary portfolio management.

The aim is very clear: to combine the client reach and experience of Deutsche Bank's Private Bank with DWS's institutional-grade investment capabilities. We believe this is a natural extension of our partnership and an important step in strengthening our role in serving private wealth clients.

Across all five priorities, we are making tangible progress while continuing to build for the long term. Stepping back, we feel that we are operating from a position of strength.

In a more volatile environment, our investment performance is improving, our cost discipline is paying off, and we're continuing to invest in our long-term growth priorities. As we said at our full year results, managing costs requires discipline and consistency.

Growing revenues sustainably is harder. It takes clarity on where we truly have an edge, disciplined resource allocation, and patience as platforms scale.

We've laid that groundwork over the past few years, which is why even in a more volatile environment, we remain optimistic about the future, but uncompromising in execution. Taken together, alpha generation, cost control, and focused delivery is what differentiates us as an active asset manager and gives us the confidence to reconfirm our full year target of 10% to 15% EPS growth.

Thank you, and back to Oliver for Q&A.

Thank you very much, Stefan. Operator, we're ready for Q&A now.

If I just might remind everybody to limit yourself to the two most important questions, that would be very kind. Thank you very much.

Yes, good morning. Thank you for taking my question, guys.

Two quite quickly from me. In active equity, you talked, Stefan, last quarter, if I remember well, of a turnaround here.

Could we interpret the -1.2 as a blip, which is really risk averse, and do you have the feeling that it was just something that is due to the circumstances really, and not something that should impede, I would say, the turnaround trend that you identified then? Then the second point, could you spend just ten seconds on it, which is more the Bullish Germany pitch, which I would like to hear in a little bit more detail from you, because it's important for your investors, in light of the fact that it's been a little bit of a slow start, and to which extent you still have a high degree of confidence considering that the impact, when you look sector by sector, is far from being completely harmonized yet.

Thank you very much.

Great. Thank you, Jacques-Henri.

I guess both questions are sort of related because the sort of significant revenue upside we see from Bullish Germany is active equity related, and I'll come to that in a second. Now on your first one on active equity.

We remain optimistic that the momentum has materially shifted into the positive territory. Now Q4 versus Q1, I understand if you just look at the numbers, it looks like we sort of took a step back, but I think you know that there's some seasonality in that behavior.

Q4 has some advantages because of essentially the ability of people to reinvest performance in, or the upside in the funds, essentially dividends in the funds that otherwise they would be able to take out, and they kept them in. It's slightly easier pitch than finding new clients.

Now if we compare Q1 '26 to '25, I think you see the positive momentum. Then underlyingly, and we don't disclose it, but I can try to give you some guidance.

If we differentiate between essentially retail end buyers and fund buyers, DPM or let's say more professional investors, then we looked very strong with the end clients, with retail clients. Across Europe, with the exception of one country that interestingly houses a couple of very, very large asset managers and it's French-speaking, but with the exception of this one country, we are positive in every country in Europe in active equity, in wealth, in retail flows.

If you look at some of the big flagship funds like Top Dividende, that had positive inflows. Overall, we feel good about active equity.

Look, I think in the past, some of you have very fairly criticized our investment performance, which obviously is a leading indicator for future inflows. You see that over the last sort of 24 months, we made a bunch of changes.

Takes some time, right? It's the pumping heart of DWS, you cannot really do changes instantaneously, but it needs to be over time.

With the new setup, and with people like Andre Köttner and Thomas Schüßler fully focused on managing their funds as opposed to also managing the platform, I think the performance shows, right? That's why we are so not just optimistic in what we see, but also the leading indicator of strong performance.

Now Bullish Germany, if you recall, our definition was that we've always been optimistic about Germany, but we are now turning even more bullish, give credit where credit is due, to a bunch of changes that politicians in Berlin have really been driving. Now the big infrastructure, big spending and so on, that's more something which you will see translate into flows in alternatives.

The pension reform is something which will offer significant upside to active funds, active equity, active multi-asset, I think also active alternative funds. I think given that there's sort of a tight schedule today with Amundi's call starting at 11:00, I'm probably not going to do a full teach-in on the private pension reform in Germany.

Now that it's clear what you can do, now it's clear what the fees could be, now that the structure is clear, I think the key punchline is that going forward, you can actually generate yield. In the past, it was always capital protected, meaning also very low yield-generating funds that were part of the Riester-Rente.

Going forward, there's going to be much more focus on allowing pensioners to also, with long-term investments, generate long-term yield and therefore wealth accumulation. Obviously, that's quite conducive to our strong-performing equity funds.

Thank you, Jacques-Henri.

Yes, good morning, gentlemen. Thanks for the presentation, taking my questions.

Two from me as well, please. Firstly, on your housebank ambition.

Deutsche Bank Private Bank has said that they want to double DPM volumes in the next three years. I guess with that partnership, what proportion of those volumes would you expect to get, and how should we be thinking about the incremental revenues and/or margins associated with that volume?

That's the first one. Then on your infrastructure funds and carried interest, could you please, apologies, this is a two-part question here, but could you remind us what the total expected carried interest from PEIF II is and how much has been booked to date?

I guess somewhat related, what is the expected carried interest from PEIF III if you were to hit your target returns, and any kind of indication on timing for recognition of that carried interest? Thank you.

Perfect. Thank you, Nicholas.

I think looking at Markus, probably taking both questions. On housebank, when you look at the essentially workflow between Deutsche Bank's Private Bank and us, so far they do the majority of steps.

Obviously, we are closely aligned, and our CIO is aligned and so on. Right now, I'm simplifying a little bit, but they're essentially running their own asset management operation in the sense of having portfolio managers, trading, execution, they're covered.

They do all the things that we would also be doing. Now they're doing it very well, but Claudio and the team have the perspective that with the ambition to significantly grow in DPM, that their clients, who are very well covered by Deutsche Bank's Private Bank, sort of deserve institutional-grade asset management execution, right?

Far, good. However, going forward, given that they want to grow, they want to move steps in that value chain over to DWS.

Some of that is going to be sort of country specific, because in some countries you require client consent, in some others it's mostly a communication. Again, I think it's in the best interest of clients because they will continue to get the service of Deutsche Bank's Private Bank plus have the upside of our much larger trading investment platform.

Therefore, it's sort of difficult to break down how quickly that will move. However, I think the intention is that for the vast majority, wherever it's possible, for us to team up and partner.

Now how those revenues will be split, even though we are great partners and Claudio and I are quite close, I suspect that he wants to have slightly more than 50% of those revenues, given that, arguably, the value creation is more on their side. You shouldn't expect us to get a lion's share of it.

It's definitely upside because right now, we do not have any of those steps, with the exception of when they buy ETF, they sometimes buy Xtrackers. I think going forward, we will have some of the value chain and therefore also some of the fees associated.

We will be more clear on that going forward. We announced the partnership after the last earnings call.

A lot of things are currently being worked through. I think that we will be quite soon giving you more guidance, clarity, but also specific KPIs that you can track essentially for Deutsche Bank, but also for DWS.

Now on infra, that's more straightforward and specific to answer. For PEIF II, everything but one asset is sold.

Therefore, the performance fees you've seen in 2025 and the portion of PEIF II performance fees as a percentage of total performance fees booked in Q1 was huge. Just assume the vast majority of the €107 million was PEIF II related.

There's only one asset remaining that should generate another let's call it €30 to €40 million of performance fees, obviously depends on price that asset still needs to be sold, that will likely come in Q4 this year. That's it, right?

Then PEIF II is fully sold, to the point Markus made earlier. We returned half a billion of capital to the investors, to the LPs in Q1, another €900 million will be returned in Q2, and then PEIF II is basically done.

Now PEIF III is doing really well. The investments are doing really well, but I would not expect PEIF III related performance fees in '26 or '27, maybe at the tail end of '27, but I think this is more likely to be '28 business, simply because of timing and how long it takes to really optimize or generate value for the investments.

Then PEIF IV is obviously currently, we're finalizing the fundraising with final close either Q2 or Q3, but definitely in 2026, and that will then take a few years before that generates performance fees. Thank you, Nicholas.

Very helpful. Just one quick follow-up on PEIF III, that timing very clear.

Just remind us, please, what the target returns are either in terms of IRR or MoIC. That would be helpful.

Thank you.

See, as I'm just looking at my colleagues, because we're currently in fundraising for PEIF IV, I just want to be careful in what I say and not say. When you look at historical performance, our PEIF funds are sort of a top-decile, potentially even top-percentile performer in mid-market infrastructure.

Really strong performance. Now the headline return, what we essentially promise, is low teens, 12%, 13%, I think is what we promise, but then we aim to outperform.

Far, they have done a very good job in outperforming.

Got it. Thank you.

Thank you.

Hi, good morning. I've got two questions.

Firstly, on PEIF IV. Did you book any inflows on PEIF IV this quarter in Q1?

Any update on the size and timing of the closing, as you mentioned maybe it could go into Q3, particularly given the events in the Middle East, any change because of this? Second question is on passive flows, or Xtrackers.

You had good inflows of €6.5 billion in the quarter, but seems like you are lagging some of your competitors now. Any reason you think for this, and how would you assess your passive growth here?

Thank you.

Thank you, Hubert. On PEIF IV, the target size is still €4 billion plus, and we feel very good about that.

If you recall, we were at €2.5 billion end of '25. We had some small inflows, couple hundred million in Q1, and then the lion's share is expected in Q2, potentially Q3.

Now don't tell our sales folks. We're still telling the sales folks it's end of Q2 to make sure everyone remains focused.

Yes, you're right. With the events in the Middle East, there's a chance that it slips a little bit.

I have to say, there's actually, if I can say that with respect, admirable focus from all of the big investors in the Middle East. They seem to manage, sort of living through this and being very focused on business.

I wouldn't expect a massive change. To be clear, what you do is if there are a couple of investors which are very close in advanced stage, then you inform the other investors that you may remain open for a few very specific names for a couple of weeks, and that may be the case.

However, essentially the difference between the €2.5 billion we had end of '25 and the target of at least €4 billion, that will be booked in the calendar year 2026. Now on Xtrackers, and let me actually address flow momentum slightly broader, and I will be specific on challenges in a second.

Look, I'm a loving, caring father of three wonderful daughters, and I love all my daughters the same. Now for us as a fiduciary with €1.1 trillion of assets, we care about every single euro, dollar, sterling of those assets with the same care.

Now I suspect that you guys, analysts and shareholders, you don't love all of our AUM quite the same because they come with very different margins, very different cost-income ratios, profitability, and so on. Now when you look at and dissect our Q1 flows and look at Xtrackers, then I suspect you're actually quite happy about the strong inflows in S&P equal weight, MSCI World ex-USA, some of those more bespoke thematic ETFs, where we had very nice inflows, and they are close to 20 basis points in fee.

Now if we had an extra €12 billion, €15 billion of 2.5, 3 basis points pure index replication, the headlines in Bloomberg and Reuters would have been more favorable, but I don't think that you would have cared too much, right? Therefore, I want our folks to fight for every single inflow.

However, fight slightly more for the high-margin inflows. I'm quite happy with what I've seen in Q1.

When you look at, and we just commented on active equity, I'm actually quite satisfied with the flow picture with positive inflows in Top Dividende, Concept Kaldemorgen, our big flagship funds. Again, I think the strong performance is a leading indicator for future flows.

I think when you dissect it, I think we've done fine, not amazingly, but fine in the higher-margin parts of the various asset classes. Now where we have a real issue and a real challenge is in institutional.

That is something which I've been saying for a while. Now I appreciate that by just me saying it doesn't make it better, and you are probably tired of me saying it.

We will make some changes around the whole value chain for institutional. Value chain I really mean, brand, marketing, sales, how structuring is set up, how products are set up, because we're just losing market share in institutional to really well-run, strong competitors.

Great. Thank you.

Thank you, Hubert. The

Thank you very much. Just to follow up on your Bullish Germany pitch, just when talking about the pension opportunities in particular and how that's going to translate into active equity, what in the regulations is going to, I guess, favor active equity versus passive equity?

We have seen other pension reforms in the past ultimately drive flows, but they tend to skew somewhat passive. Just wondering what you see different here.

Thank you so much.

Thank you, Mike. Just like we are listening and reading the transcripts of the call reports of our competitors, I suspect they would be doing the same.

Therefore, I don't want to give a recipe to global competitors, but just a couple of highlights, Mike. Historically, the subsidy, both the contribution by the government, but also any tax benefits, went to products which were capital guaranteed.

Right? Therefore, Germans like subsidies, Germans like tax benefits, and those came for the Riester products which were capital guaranteed.

Now going forward, the same advantages go to not capital guaranteed products. The government essentially said, we want young folks to invest in the stock market in products have long-term wealth accumulation, and we provide the same subsidies and tax breaks to that versus capital guaranteed products.

By the way, one more thing to add. When you look at the overall fees that the politicians deemed appropriate, that is sort of 1% for standard, but can be more for more tailor-made, maybe more interesting, more yield-generating products.

Therefore, that also suggests that it's not just ETF focused, but really alpha-generating products. Now when you look at our close competitors in Germany, the Union and Deka, two very well-run, strong asset management companies, they are active only.

They do not have ETF. I wouldn't imagine or expect their products to contain ETFs because they are active only.

Therefore, when you think about the picture in Germany, the regulator, the government wants alpha generation that is offered by active. Our competitors are active only, there's nothing that really leads me to believe that this is going to be mostly ETF.

Now obviously, we'll do whatever is in the best interest of the retail client, and if there's strong ETF products, by all means. I think over a long period of time, we aim to beat markets and therefore are bullish on those containing active equity, active multi-asset, active alternatives, these types of long-term alpha-generating products.

Thanks, Stefan.

Thank you, Mike.

Good morning, guys. Two questions, please.

First on the 40% stake you've taken on Nippon Life India. I'm just wondering if you can quantify the amounts there and what growth or profitability could look like over the coming years.

Second question is on private credit. I think that remains a strategic focus for you.

I'm just wondering if you could flesh out a bit the progress you're making there. Thank you.

Thank you, Arnaud. NAM India, when you look at the AIF, which is owned by the publicly listed Nippon Asset Management India, that is roughly €1 billion of AUM.

It's a proper company that's money making, has been around for 10 years. We're buying a 40% stake in a well-run, living, profitable company.

We didn't disclose how much we paid. They didn't disclose it.

Think about it as a reasonably high double-digit million amount. That's probably the best way to think about it.

It's not one of those we set up a JV and in 50 years if it makes money. It's we actually bought a stake in a well-run company which historically in India was more focused on essentially unconstrained fixed income and equity, which was already considered alternatives.

Going forward, the focus is going to be much more on infrastructure. India requires gigantic logistics investments, real estate, private credit, and so on.

That will be frankly our contribution, meaning as Deutsche Bank Group, Deutsche is very strong in India. Our partnership will also extend to that alternatives business.

I will be over for three days middle of May. We're currently waiting for regulatory approval.

This is something where we're quite bullish. There's nothing to believe that it shouldn't be one of the top three providers of alternatives in the medium to long run, and therefore also a decent contributor to revenues, albeit probably starting in '27, not in '26.

Private credit, this could be a one-hour conversation, but I will keep it brief. I think what you currently see in terms of environment is sort of making the case for our approach, right?

Our approach is European real economy lending, as opposed to U.S. lending to financial sponsors.

Now momentum probably isn't great because private credit is in the press and many questions are being asked, but we feel that the thesis for our product has sort of been confirmed by the current discussions in the market. Progress is strong.

Team is now complete. We brought in two more MDs in the course of Q1, all of the senior folks are now complete across asset-based finance, direct lending, solutions, but again, mostly focused on Europe so far.

We are in active fundraising. That in private credit, it only constitutes AUM and essentially fee paying once capital is deployed, which is why you don't see it yet.

I'm pleased with the progress in private credit. Thank you, Arnaud.

Yes, good morning. I stick to one question because I have to move to the Amundi conf call.

I read recently a report from the Boston Consulting Group saying that AI could reduce asset managers' costs globally from 25% to 35% within the next five years, not only in terms of improvement in middle office or reporting tasks, but also in terms of better segmentation of customers, better distribution, etc. I don't know if you have read this report, but I wanted to know what do you think about this kind of improvement in the coming years.

Thank you very much.

Thank you, Pierre. Look, what's funny is whatever I say now, in six months, we'd all look back and smile, right?

Think about what we thought about, how excited everyone was about ChatGPT, 12 months ago, and now this is sort of outdated. Who knows?

Now we are probably as excited as anyone else. I think overall, there's a significant difference between communicated progress and reality.

There's nothing that leads me to believe that we are ahead or behind any competitor, right? Everyone is looking at efficiency use cases.

Everyone is looking essentially at the whole value chain and taking out or creating scale. Just like everyone, we are experimenting on what it means for investment management in terms of challenging PMs, not just summarizing what the Fed said yesterday.

I think we're probably as excited as anyone, but we also really, really focused to making sure that it's scalable, that there's something proper to be done. We spent a couple of years in getting our data in order.

We spent a couple of years in getting our processes in order, because you don't want to automate or AI anything that is actually improperly set up. Now we feel we're sort of ripe to properly leverage it.

I think it's too early, unfortunately to give you any specific indication of efficiency created by it, in all honesty.

Thank you very much.

Thank you. Good morning.

I have one follow-up question on the politically backed Deutschlandfonds. Do you see any concrete opportunities arising from this in the alternatives asset space, say, with potential inflows over the next 12 to 18 months?

That's my question. Thank you.

Hey, Jochen. Yes, I do, which I think would be the quick answer.

To be more specific on one, and I'm just describing what we're currently actively fundraising without giving the specific update. There's one part which is called a first-of-a-kind fund, which is providing growth capital to German corporates that are essentially industry leader, right?

They're not startups, but more advanced, and now require growth capital. We announced a few months ago that we're one of three asset managers selected to manage one of those KfW co-sponsored first-of-a-kind funds.

In that case, KfW is providing, I think that was also disclosed, €100 million of equity and debt. We aim to raise another €400 million of equity and debt, and that is progressing very nicely.

That's one very specific aspect which I think would translate into fees actually this year for this one specific component of the Deutschlandfonds. There are a variety of other parts.

We are quite honestly quite thankful for what the politicians have done, and now it's on private capital to be raised. Last week, the CEO of KfW, Stefan Wintels, myself, we jointly ran a session for CIOs of major German or German-speaking insurance company CIOs, and there was a lot of interest in providing private capital to what KfW is sort of initiating.

Thank you, Jochen.

Thank you very much.

Thank you very much, everybody, for listening in and for your good questions, as usual. Please reach out to the IR team in case of any open questions that you might have.

Otherwise, we wish you all a fantastic day and talk to you very soon. Bye-bye.

Thank you very much.

Bye-bye.