Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Why Did DWS LifeCompass Income Lose Its Way? Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, July 6, 2009

Why Did DWS LifeCompass Income Lose Its Way?

by: Kimberly Chin

Deutsche Bank's DWS Investments seemed like a good idea at the time, writes Wall Street Journal writer Tom Lauricella. The fund series started last year as a means to bring the bank into the next-generation for retirees, yet Deutsche had to shutter the DWS LifeCompass Income Fund earlier this year. And Deutsche isn't the only asset manager facing such a flop.

Deutsche's goal was to pay out a steady stream of income while holding stocks. As the market fell, the fund bought more bonds and ditched its stocks. And once the fund was basically pure bond, its insurance contract forced it to no longer buy stocks at all, i.e. transforming LifeCompass income into a permanent all-bond fund.

This eventually led Deutsche to halt sales of the $30 million DWS LifeCompass Income Fund in October and the fund returned investor's money earlier this year.

AllState Corp. had to withdraw a lineup of mutual funds that had launched in 2008. Similar to Deutsche Bank's DWS funds, AllState offered guarantees for older investors that would offer retirees income for life. The guarantees were a heavy cost as the market fell, causing AllState to shutter the funds.

Lauricella sees AllState's and Deutsche's woes as lessons for companies who are looking to offer retirees a predictable income or reduce their losses while trying to find both stable investments in stocks and low costs. Even the well-performing funds weren't invulnerable to the market downturn, Lauricella warns. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use