AmazonScience/document-haystack

123 – Structured Entities2Nature, Purpose and Extent of the Group’s Interests in Structured 3Entities4The Group engages in various business activities with structured entities which are designed 5to achieve a specific business purpose. A structured entity is one that has been set up so that 6any voting rights or similar rights are not the dominant factor in deciding who controls the 7entity. An example is when voting rights relate only to administrative tasks and the relevant 8activities are directed by contractual arrangements.9A structured entity often has some or all of the following features or attributes:10— Restricted activities11— A narrow and well defined objective12— Insufficient equity to permit the structured entity to finance its activities without 13subordinated financial support14— Financing in the form of multiple contractually linked instruments to investors that create 15concentration of credit or other risks (tranches)16As part of its business, the Group is responsible for the set up and management of various 17entities that are used to manage portfolios of assets on behalf of its clients. These entities are 18classified as structured entities. Structured entities may be established as corporations, trusts 19or partnerships. Structured entities generally finance the purchase of assets by issuing debt 20or equity securities that are collateralised by and/or indexed to the assets held by the 21structured entities. 22The Group is considered a fund’s sponsor if market participants associate this structured 23entity with the Group. This is assumed to be the case if the term “DWS” or “Xtrackers” is used 24in a fund’s name. Investment funds managed by group-internal asset managers can be 25reasonably associated with the Group. As a sponsor, the Group is involved in the legal set-up 26and marketing of internally managed funds. This may include providing seed capital to the 27funds and providing administrative services to ensure the investment funds’ operation.28Income Derived from Involvement with Structured Entities29The Group earns management fees and, occasionally, performance-based fees for its 30investment management service in relation to funds. The majority of the net commission and 31fees from asset management activities and most of the net gains (losses) on financial assets/32liabilities at fair value through profit or loss relates to structured entities.33Financial Support34During 2023 and 2022 respectively, the Group did not provide non-contractual support to 35consolidated and unconsolidated structured entities.36Consolidated Structured Entities37The Group has the following consolidated structured entities and considers the net asset 38value of the consolidated structured entities as the size and maximum exposure at risk.39Consolidated structured entities40in € m. 31 Dec 2023 31 Dec 202241Assets:42Guaranteed funds 1,457 1,27843Seed investments 226 10844Co-investments 6 745Liquidity positions 1,580 1,02046Total assets 3,269 2,41247Liabilities:48Guaranteed funds 1,456 1,27749Seed investments 31 1150Co-investments 3 251Liquidity positions 0 052Total liabilities 1,490 1,28953Net income (loss) attributable to DWS shareholders:54Guaranteed funds  0 055Seed investments  13 (3)56Co-investments  (1) 557Liquidity positions  39 (2)58Total net income (loss) attributable to DWS shareholders 51 (1)59Unconsolidated Structured Entities60These are structured entities which are not consolidated because the Group does not control 61them through voting rights, contract, funding agreements, or other means. 62         63To our 64Shareholders65Summarised 66Management Report67Consolidated 68Financial Statements Compensation Report Corporate Govern-69ance Statement70Supplementary 71Information DWS 2023 Annual Report72 73Additional Notes74128 23 – Structured Entities