(Bloomberg) -- Deutsche Bank AG’s asset management unit reported an inflow of funds in the third quarter, ending a six-month period of clients withdrawing cash as market conditions deteriorate.

DWS Group pulled in an additional €7.7 billion ($7.7 billion) in funds in the three months through September, the company said in a statement on Wednesday. 

While the halt to outflows is a boost to new Chief Executive Officer Stefan Hoops, the bulk came from low-margin cash products. Excluding these offerings, the firm saw outflows of €9.8 billion. Assets under management remained stable at €833 billion.

The results follow a period of instability at DWS, which saw Asoka Woehrmann resign as CEO after a police raid at the firm’s Frankfurt headquarters on May 31. The search was part of an investigation into allegations that the asset manager overstated its sustainability capabilities to investors. 

The departure of the CEO has been compounded by market volatility and economic pressures, which have hit active asset managers like DWS. The company’s shares have tumbled 24% this year. 

ESG Change

Hoops took over in early June and has been quick to reassure clients, including changing its oversight of environmental, social and governance investments, and targeting growth in its North America business.

DWS is still being investigated by German regulator BaFin as well as the Securities and Exchange Commission and the Department of Justice in the US for allegedly misrepresenting its ESG work. DWS has consistently rejected allegations of greenwashing.

Last week, Hoops announced internally that the firm’s new ESG structure would become effective as of Jan. 1. The changes include setting up a sustainability oversight office, among other measures.

DWS also aims to expand its US business, which accounts for a quarter of assets under management. Earlier this month, the firm appointed Dirk Goergen to run its US arm. He is replacing Mark Cullen, who is retiring, in January. 

The firm reported outflows in its active equity and fixed income funds of €7 billion. The segment was hit by the prospect of rising interest rates and ongoing uncertainty caused by market volatility and geopolitical risks. DWS continued to see inflows into its alternatives business, pulling in €1 billion.

Adjusted costs rose quarter-on-quarter by 10% to €437 million, mainly due to higher compensation costs in the form of carried interest payments in the firm’s alternatives business. 

(Updates with additional details on fund flows in last two paragraphs)

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