Deutsche Asset Management India launches DWS Corporate Debt Opportunities Fund

Fund seeks to generate income and capital appreciation by investing predominantly in corporate debt.

Sep 09, 2014 12:09 IST India Infoline News Service

Deutsche Asset Management India, announced the launch of DWS Corporate Debt Opportunities Fund, an open ended debt scheme. The New Fund Offer period is from September 9 to September 23, 2014. The fund seeks to generate income and capital appreciation by investing predominantly in corporate debt.

Suresh Soni, MD & CEO, Deutsche Asset Management India said, “Improving business confidence and demand conditions reflect an improving corporate credit environment. DWS Corporate Debt Opportunities Fund seeks to benefit from this trend by actively identifying investment opportunities across the credit spectrum. Our experienced fixed income team, backed by our strong investment process is well placed to deliver superior returns while ensuring strict risk control. DWS Corporate Debt Opportunities Fund is an ideal investment solution for investors, seeking steady returns over the medium term from fixed income investments.”

Corporate bonds are looking attractive. In the 3 year segment, the spread (over AAA) for AA rated bonds is around 75 bps; while the spread for single A rated bonds (over AAA) is 235 bps. Unlike the AAA bond curve which is mostly flat in the 2-10 year segment, the AA and A rated bond curves are upward sloping in the 3-5 year segment. These indicators along with likelihood of monetary easing makes corporate bond curve look attractive going forward.

DWS Corporate Debt Opportunities Fund portfolio is positioned to:
  • Actively manage portfolio of short and medium term corporate bonds
  • Portfolio would predominantly comprise investment in AA rated issuers; there would be opportunistic allocation to A rated issuers
  • No exposure to Government securities / State Government Securities (SDLs)
  • Portfolio to follow an accrual strategy; exposure to AA rated securities would provide relatively higher yield on the portfolio

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