Successful Launch of 130/30 UCITS III Equity Fund implementing the Proven CROCI Investment Strategy
Deutsche Bank has raised EUR 90 mn in assets for the UCITS III compliant DB Platinum IV CROCI Global 130/30 fund it launched last week. Following the soft launch, the fund is now publicly available in multiple European jurisdictions.
The fund tracks the Deutsche Bank CROCI Global 130/30 index and aims to increase the risk adjusted returns from a portfolio of equity investments by relaxing the long only constraint and taking short positions equal to 30%.
Manfred Schraepler, head of the fund solutions platform at Deutsche Bank commented: “Many funds in the equity sector have seen significant outflows recently so we are particularly pleased to have attracted EUR 90 mn of investment into the DB Platinum IV CROCI Global 130/30 Fund so quickly.”
The CROCI Global 130/30 Index takes long and short positions in stocks selected from a universe of the 200 largest stocks by market cap (excluding financials) from the US, Europe and Japan:
- 100% of the index is invested in the stocks of the selection universe which have the highest multifactor score according to the CROCI methodology.
- Stocks equal to 30% of the index are borrowed and sold, creating a short position. These stocks have the lowest multifactor score, according to the CROCI methodology.
- The proceeds of selling the short position are used to invest a further 30% in long positions.
Overall, this means that the index has gross market exposure of 160% and net market exposure of 100%.
CROCI – Cash Return on Capital Invested – is a proprietary research model developed by Deutsche Bank and launched in 2004. It makes the valuation of companies comparable across sectors as well as markets and it aims to identify the best value stocks in the market. Currently, about EUR 3 bn of assets are invested in accordance with strategies which are based on CROCI.
For further information, please call:
+44 20 7547 26 03
The DB Platinum IV CROCI Global 130/30 Fund is available in retail and institutional share classes. It is registered for public offer in Luxembourg and Germany and is available in other jurisdictions, subject private placement restrictions.
The management fee for the institutional share class (ISIN: LU0377353379) launched on 19 January is 1.00% p.a. and total costs are 1.16% p.a.
The fund provides daily liquidity for investors.
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 81,308 employees in 75 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.