The new DWS Corporate Bond fund has received FSA approval and will launch on February 9. The new fund will be managed by Charles McKenzie, who currently manages the DWS Corporate Bond Plus fund. It will invest in global investment-grade corporate bonds and hedge returns back into sterling. McKenzie believes this will offer better returns than investing solely in UK corporate bonds, which are often overpriced. It also allows him a substantially wider range of investments. The fund will be benchmarked against the Merrill Lynch UK non-gilt index. McKenzie will also draw on DWS’s currency and interest-rate views to generate additional returns. The new fund will have a predicted yield of about 4%. McKenzie’s existing fund is AA-rated by S&P and lies 14th out of 88 funds over one year in the S&P Fixed Income GBP-Corporate sector.