View more on these topics

DWS goes for growth

Oeic fund of funds

Growth by investing in DWS equity and bond funds

Minimum investment:
Lump sum £1,000,
monthly £25

Investment split:
50% equity funds, 50% bond funds

Isa link:

Pap transfers:

Initial 4.25%, Isa 3.25%, Pep transfers 3%,
annual 1.25%

Initial 3%,
renewal 0.5%

Tel: 0800 917 0005

The DWS managed distribution fund is a fettered Oeic fund of funds that invests in a range of DWS equity and bond funds.

ABG International (Isle of Man) investment consultant Julian Melling thinks that for clients requiring an income, the distribution fund as the core of a portfolio makes sense. He says: “This product offers a diversified portfolio of assets that can provide income and capital growth. The fund represents a managed portfolio of DWS funds that can be used as the core asset in an overall investment strategy, rather than selecting a variety of funds from different managers that would have to be re-balanced on regular basis.”

Melling feels the fund provides a simple solution for clients requiring additional income with long-term capital growth. He says: “The literature is simple but informative. The management of the investment risk is explained well in the back to basics section. Consistent performance is not just reliant upon the individual managers, but on the research machine the manager relies on for data.:

Melling points out that DWS is a large organisation with considerable research capabilities that are continually monitored. He adds: “The mention of cash flow analysis in the literature also provides clients with an answer to the question &#39what criteria do they use to value a stock?&#39 The team approach used in stock selection is still quite novel and makes sense for this type of investment. Why have one generalist when you can have several specialists?”

However, Melling notes that the fund does have some flaws. He says: “DWS isn&#39t the best at everything; so clients may sacrifice performance for a one stop shop solution. Also, the lack of a track record for the overall fund may present problems, and the fact that distribution funds have usually been the domain of life fund managers may go against DWS.”

This point leads Melling to ponder which funds are likely to compete with the DWS fund. He says: “There are several distribution funds available. New Star is probably the main competition with the managed distribution fund, though as the DWS literature states &#39New stars fade.” The DWS fund is also available via the Skandia Multi Distribution Bond along with Norwich Union, AXA, Prudential, and New Star.”

Summing up Melling says: “DWS has the research capability and a good track record that will provide investors with peace of mind. The team and blend of funds is slightly different to most distribution funds, it will be interesting to see if this approach yields better results.


Suitability to market: Good
Investment strategy: Good
Charges: Average
Adviser remuneration: Average

Overall 7/10


FSA pledges help with ads but rules out pre-vetting

The FSA has vowed to work more closely with financial companies over their ads but has maintained its position on not pre-vetting ads, saying this is “a bridge too far”. In its business plan for the next financial year, the regulator says it will look at the marketing strategies of financial services companies and set […]

Room with a phew

Room for Improvement? The Diary hopes this is no longer the case for MM columnist Keith Popplewell who let builder Dave and designer Angus into his house last week to convert his utility area. Keith seems to have acquired the taste for fame – readers may remember him from such shows as The Big Breakfast […]

Postal friendly says Sandler is missing target

The Communication Workers Friendly Society has slammed the Government and the FSA for rubber-stamping changes to financial products which the society believes are detrimental to the people the regulator is trying to help. Chief executive Edward Chapman says the Government and the FSA&#39s support of Sandler&#39s no-advice framework proves that the regulator and the Government […]

Marlborough looking to boost turnover by £10m

Technology provider Marlborough Stirling says its turnover will be boosted by £10m in the next year if a series of deals go ahead as planned. In its market outlook for 2004, the firm says it expects to complete a number of exclusive contracts that will boost turnover to £80m by March 2005 from £70m. However, […]

Naming a reward programme

Six tips to get your reward programme name right

by Debra Corey, group reward director  Choosing a name isn’t easy. Whether it’s for your new puppy, a bundle of joy or your reward programme, a name determines a first impression – and often a lasting memory. When it comes to your reward programme, the name will determine how your employees feel about it even before […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm