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Deutsche launches 130/30 Ucits III equity fund

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Deutsche Bank has raised EUR90m in assets for the Ucits III-compliant DB Platinum IV Croci Global 130/30 fund it launched last week.

Deutsche Bank has raised EUR90m 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 various 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 per cent.

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 EUR3bn of assets are invested in accordance with strategies based on Croci.

Manfred Schraepler, head of the fund solutions platform at Deutsche Bank, says: ‘Many funds in the equity sector have seen significant outflows recently, so we are particularly pleased to have attracted EUR90m 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 capitalisation (excluding financials) from the US, Europe and Japan.

The total value of the index is invested in stocks of the selection universe with the highest multifactor score according to the Croci methodology. Stocks equal to 30 per cent of the index with the lowest multifactor score, according to the Croci methodology, are borrowed and sold, creating a short position.

The proceeds of selling the short position are used to invest a further 30 per cent in long positions. Overall, this means that the index has gross market exposure of 160 per cent and net market exposure of 100 per cent.

The 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 launched is 1.00 per cent p.a. and total costs are 1.16 per cent p.a.

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