DWS Invest ESG Dynamic Opportunities

Stay flexible – seize opportunities

Equity-like returns with reduced volatility require high flexibility and disciplined risk management

Flexible in all directions

Appropriate risk control

The DWS Invest ESG Dynamic Opportunities is as flexible anddiverse as a multi-tool. The fund can invest in equities, bonds, currencies and gold, and using direct investments in equities or funds or derivatives. There is also full flexibility with regard to segments, regions or company sizes. By cleverly combining the tools, it is possible to achieve equity-like returns with a balanced mutual fund.

A specially developed risk model is an integral part of the investment process. In comparatively unsettled stock market phases, the risk appetite is turned down and thus risk reduced. If there are fewer ups and downs on the stock market, more opportunities can be seized. This can result in an asymmetrical risk-reward profile with equity-like returns and reduced fluctuations.

The asymmetrical risk-reward profile[1] of DWS Invest ESG Dynamic Opportunities

In rising markets



dops_assymetrisches_risiko-rendite_profil_black_Steigend.png

In falling markets



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Period: 01.01.2013 (start of implementation of the strategy) to 30.09.2023, calculation based on monthly data.

There is a rule on the stock market saying: more opportunity, more risk. If this ratio of return opportunity and risk of loss does not apply, there is an asymmetrical risk-return profile. In relation to the DWS Invest ESG Dynamic Opportunities, this means that while the DWS Invest ESG Dynamic Opportunities was able to record 71 percent of the price gains in rising markets, the fund only suffered 66 percent of the losses in falling markets.[2]

" We aim to provide investors with access to equity market opportunities while limiting volatility during periods of stress. The fund offers an innovative approach within the dynamic multi-asset category, combining flexibility with a strong focus on risk management.

Christoph Schmidt - Senior Portfolio Manager / Team Lead Multi Asset & Solutions

Sustainable Investments - ESG criteria complement the classic investment objectives

Sustainability criteria can complement the investment objectives of return, risk and liquidity, with environmental, social and governance-related aspects. The three sustainability criteria provide orientation. They can be understood as a guidance to sustainable investing.

* The following is merely an example and not an exhaustive list.

Environmental

Carbon footprint (CO2 emissions), Conservation of natural resources, Environmental protection

Social

Human rights, Labour standards, Consumer protection

Governance

Business ethics, Incentive structures, Competitive behaviour

Further information on the consideration of sustainability criteria >>
A look into the multi asset kitchen

A look into the multi asset kitchen

A look into the multi asset kitchen

Investing can be like cooking. You have to choose the right ingredients.

The tools of DWS Invest ESG Dynamic Opportunities

DWS Invest ESG Dynamic Opportunities seeks to achieve equity-like returns combined with reduced risk over the long term. Therefore various tools can be used.

Large selection

The right tool for every challenge.

Master all situations efficiently with the right tool.

The selection options in terms of asset classes and types.

Various asset classes are available to the fund management: Equities, gold, bonds or currencies. In addition, it can be flexibly decided to invest directly in shares, in funds or ETFs or in derivatives[3].

Broad diversification

Combine maturities, sectors, regions and segments.

Approaching the goal by combining the right tools.

The options that fund management can choose from exemplary illustrated for shares and bonds.

Shares

Bonds
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DOPS_Schublade_Regionen_blau.png
DOPS_Schublade_Regions_grün.png
DOPS_Schublade_Ratings_blau.png

 

In order to achieve the highest possible returns at an acceptable level of risk, the management is flexible with regard to company size, sectors, segments, regions and maturities and can combine the appropriate instruments in a targeted manner[2].

Flexible allocation

The mix of asset classes is always adjusted to the current market situation.

Flexible in any market situation - with shares and other asset classes

Breakdown of asset classes since the strategy was launched (January 2013)

If the environment for equities appears promising to the fund management, their share in the fund is up to 100 percent. If the pace is more cautious or if bonds and gold have a particularly good risk-reward ratio, the fund can reduce the share of equities in favour of other asset classes.

Agile management

Freedom is good - if used.

Prepared for changing market situations with active portfolio management

Extract from the equity portfolio - sector allocation (DWS ESG Dynamic Opportunities FC)

The fund management does not just look for the right asset classes and instruments once. Instead, the mix is continuously reviewed and adjusted at all levels - always in line with the current market situation.

Forward-looking risk control

Core competence risk control and how it works.

Effective risk management in turbulent phases

Maximum price decline of DWS ESG Dynamic Opprtunities compared to the MSCI World Index

A modern and specially developed risk model is an integral part of the investment process:
While the global stock market (represented by the MSCI World index) has repeatedly recorded interim double-digit losses in recent years, the risk management of the DWS Invest Dynamic Opportunities proved to be extremely effective in turbulent phases.

Reduce price fluctuations as much as possible - through adjusted risk appetite

Volatility target corridor: DWS ESG Dynamic Opportunities and MSCI World (in EUR) since strategy launch (January 2013)

One element of forward-looking risk management is to reduce price fluctuations as much as possible. Therefore, the fund reduces its risk appetite if necessary. In comparatively turbulent stock market phases, it should only be at 50 percent of the fluctuation level of the MSCI World share index. In comparatively calmer stock market times, the risk tolerance is increased again, because it is hardly possible to achieve attractive returns without risk.

DWS Invest ESG Dynamic Opportunities LC Growth-oriented

DWS Invest ESG Dynamic Opportunities LC Growth-oriented

Total Return Strategies/Growth-oriented

ISIN: LU1868537090

Currency: EUR

Management Fee: 1.3000%

Morningstar Rating Morningstar Rating from Feb 29, 2024

Go to Product Detail Page

Fund details of DWS Invest ESG Dynamic Opportunities LC

Shareclass

LC

Currency

EUR

ISIN

LU1868537090

Valor

43448420

Front-end Load

up to 4.0%

All-in fee

1.300% p.a.

Current costs (Status: 31.12.2022)

1.550%

Earnings

Accumulation

Supplementary information on the investment policy

The investment policy is defined, among other things, by environmental and social aspects, as well as the principles of good corporate governance. The fund management applies DWS‘s own ESG filter „DWS ESG Investment Standard“ when selecting assets. At least 75% of the fund’s assets are invested in assets covered by the DWS ESG Investment Standard.

Share of sustainable investments according to SFDR

If a company has a positive contribution to at least one of the United Nations SDGs through its economic activity and does not violate any other goal, as well as adheres to principles of good governance, it is considered a sustainable investment.

Minimum share of sustainable investments[4] 15%[5]

Risks[6]

  • At any time, the price of the shares can fall below the price at which the investor acquired them (up to the risk of total loss).

  • Market, industry and company-specific price fluctuations on the equity markets.

  • Interest rate, price and currency fluctuations in the bond markets. A creditworthiness risk exists with regard to the issuers of bonds. In general terms, this is the risk of over-indebtedness or insolvency, i.e. the potential temporary or permanent inability to fulfill interest and/or repayment obligations on schedule. This can have a negative impact on the fund's performance.

  • Asset-backed securities may be less liquid than corporate debt; in addition, there is the risk of early repayment, which can lead to fluctuations in the unit price.

  • The use of derivatives involves counterparty risks, i.e. the creditworthiness risk of the counterparties (see the above risk notice on creditworthiness risk). Derivatives are subject neither to statutory nor voluntary deposit insurance.

  • The fund has the option of achieving leverage through the use of derivatives. The use of leverage can result in the increase in potential losses.

  • The fund can invest in assets with different currencies. This gives rise to exchange rate risks, which may be hedged.

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1. The risk-reward profile describes the relationship between the potential return of a security and the risk of loss. If these two aspects are unequally distributed, i.e. one profile outweighs the other, this is referred to as an asymmetrical risk-reward profile. The MSCI World is a stock index that reflects the performance of around 1,600 stocks from 23 industrialised countries. No assurance can be given that the investment objectives set out in the prospectus will be achieved. Forecasts are based on assumptions, estimates, views and hypothetical models or analyses that may prove to be inaccurate or incorrect.

2. No assurance can be given that the investment targets set in prospect will be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models or analyses that may prove to be inaccurate or incorrect. Asset allocation is subject to change at any time without notice. Past performance is not a reliable indicator of future performance.

3. In the narrower sense, a derivative is a financial instrument whose price depends on other reference variables such as indices, shares or bonds. No assurance can be given that the investment targets set in prospect will be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models or analyses that may prove to be inaccurate or incorrect. Asset allocation is subject to change at any time without notice. Past performance is not a reliable indicator of future performance.

4. The proportion of sustainable investments as defined in Article 2(17) SFDR in the portfolio is calculated in proportion to the economic activities of the issuers that qualify as sustainable.

5. These are minimum shares that do not necessarily add up to the total share.

6. Details are contained in the Prospectus.

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