View more on these topics

DWS focuses on homegrown funds

DWS Investments has designed an Oeic fund of funds that invests only in DWS funds.

The DWS managed distribution fund will initially invest 50 per cent in equities and 50 per cent in bonds. However, it has the flexibility to invest between 40 per cent and 60 per cent in each asset class as market conditions change.

Jonathan Arthur, who currently runs the DWS managed portfolio fund, will manage the new fund. Although his existing fund is also a fund of funds, it focuses mainly on growth whereas the new fund will prioritise income.

Arthur&#39s joined DWS when it was known as Deutsche Asset Management in 1996 after gaining 12 years&#39 experience at Charterhouse, Tilney and BWD Rensburg. He specialises in asset allocation and is expected to hold the group&#39s UK equity plus, corporate bond plus, UK equity income and sterling bond funds in the new fund.

DWS says the diversification between equities and bonds within the fund is a way of reducing risk. Investing exclusively in its own funds means the fund manager is more likely to have all the information he needs at his fingertips, making analysis and asset allocation easier.

However, this fund has its limitations compared with multi-manager funds of funds from companies such as Credit Suisse Asset Management, which have the whole market to choose from. Investors&#39 money will be concentrated within the DWS group and will lack exposure to the strengths and different views of other investment houses, so diversification is compromised.

According to Standard & Poor&#39s the DWS managed portfolio fund is ranked 40 out of 75 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to September 15, 2003.

Recommended

Universal Building Society – Offset Mortgage Account

Type: Offset tracker mortgage Tracker term: Life of loan Tracker rate: 0.5% above Bank of England base rate Minimum loan: £20,000 Maximum loan: Up to 85% loan to valuation subject to a maximum of £350,000 Income multiples: Up to 3 times principal income plus second or 2.5 times joint Redemption fee: None Arrangement fee: £60 […]

Morgan Stanley fills three-year income gap

Morgan Stanley&#39s latest addition to the structured product market is a capital-protected bond, which provides annual income over a three-year term. The FTSE 100 income plan provides a single option of 6.5 per cent income a year but the degree of capital protection is dependent on the performance of the index. Investors will get their […]

Egg cuts Invesco funds in Oeic shift

Online provider Egg is removing over half of its range of Invesco Perpetual funds from the platform due to the company&#39s decision to convert its range of unit trusts to Oeics.Egg, currently undergoing a product refocus, says its costs of conversion – up to £12,000 per fund – are prohibitively high, given the small number […]

Trade bodies&#39 fears on FSA&#39s reporting rules

Trade bodies fear that new reporting procedures proposed by the FSA will add costs and mean an upheaval in business practices.CP198, published last week, outlines regulatory reporting proposals for financial services firms. In it, the FSA proposes a “streamlined approach to reporting requirements” which would mean that all intermediaries must file reports to the FSA […]

Jelf flexible benefits

In Focus: How to choose a flexible benefits provider — seven top tips

Jelf Employee Benefits looks at some of the key considerations employers should think about when reviewing and choosing a flexible benefits provider. Choosing the right benefits for your employees is one thing but delivering a successful employee benefits strategy is about understanding the complete picture and delivering it in a personalised way so that it resonates with each and every individual in your business. 

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment