DWS boss: ‘I will not be intimidated over ESG allegations’

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Asoka Wöhrmann, the chief executive of listed German asset manager DWS, said he will “not be intimidated” by allegations made against the firm over its ESG credentials and denied any wrongdoing after reports that he attempted to buy a €160,000 Porsche during his time at Deutsche Bank.

Regulators in the US and Germany are currently investigating DWS after its former head of sustainability, Desiree Fixler, claimed it had overstated how much it used sustainable investing criteria to manage its assets.

Fixler — who was fired by DWS in March last year — claimed her former employer misrepresented its ESG capabilities in its annual report.

She said she objected to its annual report which stated that as a firm it has “placed ESG at the heart of everything that we do” and that more than half of its assets under management were invested using ESG criteria.

DWS has stood by the disclosures made in the annual report.

“Since April last year, DWS and I myself, have been the subject against our company reputation and my reputation,” Wöhrmann told analysts during the asset manager’s full year results call on 27 January.

“I emphatically reject all these allegations and insinuations. I will not be intimidated or deterred from doing my job, working with clients and managing DWS.”

READ DWS defends its approach to ESG amid greenwashing probe

The DWS boss has also come under scrutiny following a report by the Financial Times which revealed an incident during his time in charge of Deutsche Bank’s private client business when Wöhrmann received a €160,000 transfer from a client.

The payment, discovered by Deutsche Bank in 2018 and flagged to Germany’s financial crime watchdog, was later explained as a failed attempt to buy a Porsche Panamera.

Wöhrmann had first transferred the money to Daniel Wruck, managing director of Ice Field Dry Ice Engineering, as he was personally known to a Porsche dealership where a car could be sourced, according to the FT.

However, it was explained that the money was later refunded to Wöhrmann after Wruck was unable to transfer it on his behalf.

At the time of the payments, Wruck and Wöhrmann were involved in joint venture negotiations over Auto1 FinTech, a start-up initially backed by Deutsche, Allianz, Auto1 and other investors.

A statement from DWS said Wöhrmann “strenuously rejects insinuations connected to his time as head of the German private bank of Deutsche Bank”.

“In that capacity, he facilitated the talks of the involved parties of Auto 1 Fintech — representing the interests of Deutsche Bank at all times and instances,” the statement added.

The defense from the DWS boss comes amid a record year for revenues and inflows in 2021 for the asset manager, with Wöhrmann claiming the “unfounded allegations” regarding its approach to ESG failed to dampen investor appetite for its sustainable investment strategies.

The Frankfurt-headquartered business gathered net inflows of €15bn during the final three months of last year, bringing its total haul for 2021 to a record €47.7bn. This helped boost assets under management to €928bn.

Total revenues of €2.7bn for the full year were up 22% on the previous 12 months, while pre-tax profits rose 43% to an all-time high of €1.1bn.

ESG funds pulled in a record €5.9bn during the final quarter of 2021, bringing total net inflows for these products to €18.9bn for the full year.

Wöhrmann said: “We have an ambitious journey ahead and a lot to do. Sideline noise will not stop us from doing what we have to do.”

To contact the author of this story with feedback or news, email David Ricketts

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