| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for DWS S&P 500 Plus Fund > News item |
DWS S&P 500 Plus Fund calls for vote on merger into S&P 500 Index Fund
By Toni Weeks
San Diego, March 12 - The board of trustees of the DWS S&P 500 Plus Fund have approved a proposal to merge the fund into the DWS S&P 500 Index Fund and is now asking shareholders to vote on the proposal, according to a 497 filing with the Securities and Exchange Commission.
The S&P Plus Fund employs a global tactical asset allocation (GTAA) overlay strategy and, through the use of derivatives, aims to take advantage of inefficiencies within global bond, equity and currency markets. According to the filing, the strategy has not performed consistently in the current volatile global market environments, and DWS has advised the board that the strategy may no longer be viable.
Merging the fund into the S&P Index Fund would provide a more traditional index fund that pursues the same benchmark as the S&P Plus Fund but without the volatility of the GTAA strategy.
If the proposal is not approved, the board will consider alternatives, including the liquidation of the fund.
The merger is expected to be a tax-free reorganization for federal income tax purposes.
Fee changes would occur if the merger is approved. The S&P Index Fund has an advisory fee of 0.05%, total administrative fees of 0.13% and other fees and expenses, whereas the S&P Plus Fund's fees consist of a unitary fulcrum fee, which currently is 0.5% per year of the average daily net assets but adjusts from zero to 1% based on the fund's performance.
If approved, the merger would take place April 30.
New York-based Deutsche Investment Management Americas Inc., a wholly owned subsidiary of Deutsche Bank AG, serves as both funds' investment adviser.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.