DWS Investments is offering a fettered fund of funds and a corporate bond fund seeking the best-value debt worldwide as part of its bid to break into the top 10 UK investment companies.
The managed distribution Fof, to be run by managed portfolio fund manager Jonathan Arthur, will invest in DWS' flagship funds, with a 50/50s split between equity and bonds. Arthur will be able to vary this mix to reflect market conditions although there will be no more than a 60 per cent bias towards either asset class.
The fund, which will aim to yield 4-4.5 per cent, will be an Oeic with a single share class. Charges are 4.25 per cent initial and 1.25 per cent annual.
The corporate bond fund will be run by Charles McKenzie, manager of DWS's corporate bond plus fund. It will seek to provide income and growth by investing in the best-value investment-grade corporate bond funds worldwide and hedging returns back into sterling. It will also aim to yield around 4-4.5 per cent.
Charges are 4 per cent initial charge and 1 per cent annual. Both funds are expected to launch in November.
Commission is yet to be determined.
Managing director Michael Warren says: “We are launching these funds purely for investment reasons. As they are reasonably low risk, we hope to capture some of the assets that have been stuck in deposit accounts for too long.”
Best Invest business development manager Justin Modray says: “Both funds are welcome although investmentgrade bond funds always struggle for meaningful outperformance while the distribution fund will have its work cut out against the funds of Jupiter and New Star.”