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Going Steady

DWS Money Plus has been one of the top performers in the Debt Liquid Plus category & here’s how

DWS Money Plus was launched in March 2006 and has been a top performer in the Debt Liquid Plus category. The fund aims to invest fully in debt and money market instruments with a maturity of less than 12 months and to an extent of 30 per cent in those instruments whose maturity is more than 12 months, which includes securitized debt as well.

DWS Money Plus has beaten its category in terms of the three months trailing returns in the quarter ended June 2008. This is thanks to the fund’s ability in maintaining a balance between quality and risk in its portfolio. The fund has kept a 70 per cent exposure to high quality AAA/P1+ rated papers to minimize the credit risk. However, this doesn’t mean that the fund has compromised in terms of returns. To generate extra returns, the fund’s exposure to below AA-rated instruments went up to as high as 50 per cent in March 2007 and the fund invested in unrated instruments as well to the tune of 23 per cent in December 2007. Among the diversified instruments, the fund holds Commercial Paper, Certificate of Deposit & Debentures.

To control the interest rate risk, the average maturity level of the portfolio has been between 95 to 195 days, which is well below its category average of around 117 to 317 days. On the expense front, the fund was 0.68 per cent vis-à-vis the category’s 0.79.