DWS looks to overseas debt

investment week UK Equities and fixed interest conference

buying UK corporates not enough to outperform, says head of fixed interest charles McKenzie

DWS Investments is looking to add value to its UK corporate bond portfolios by investing overseas and buying non-sterling-denominated paper. Charles McKenzie, head of UK fixed income at DWS, argued a conventional strategy of buying UK corporates and taking bets on duration is no longer enough to outperform. McKenzie said debt from big companies is often issued in different currencies but many investors are scared of buying euro or dollar-denominated paper because it involves taking on non-UK interest rate and currency risk. He pointed out these two risks could easily be hedged away, the ...