Deutsche Asset & Wealth Management (Deutsche AWM) is rolling out its CROCI (Cash Return on Capital Invested) funds on the Raymond James investment management platform.
Wealth managers can now access three CROCI funds, as sterling share classes, via the platform.
The three funds are the DB Platinum IV CROCI US, DB Platinum IV CROCI Japan and DB Platinum CROCI Global Dividends funds.
CROCI is an analysis process that aims to assess the fundamental value of companies, sectors and markets. A team of 60 analysts, covering 800 companies globally, systematically remove distortions in accounting data to create economic valuations on a comparable basis across sectors and regions. The process identifies stocks for potential investment that are undervalued while avoiding the most over-valued companies. CROCI funds invest in portfolios of equities identified as being the most undervalued.
Francesco Curto, Deutsche AWM’s head of CROCI, says: “New investment into our CROCI fund range is accelerating as more investors become aware of their track record and the benefits of our ‘real value’ investment process. This agreement will make the funds readily accessible to UK retail investors.”
CROCI strategies have attracted over EUR11 billion in investment. July marked the 10-year anniversary of the CROCI fund range. In that time the DB Platinum IV CROCI US fund outperformed the S&P 500 Index by an average of 1.7 per cent per year, while the DB Platinum IV CROCI Europe fund outperformed the Euro STOXX 50 Index by an average of two per cent per year, with the DB Platinum IV CROCI Japan fund outperforming the Topix by an average of 0.5 per cent per annum.
Raymond James’ head of business development, David Hazelton, says: “Wealth managers are looking for funds that offer the possibility of consistent outperformance in markets like the US, so the CROCI funds will be a welcome addition for them. We look to add funds to our platform that can help wealth managers deliver superior investment returns to their clients, in turn helping them differentiate themselves from their competitors. The CROCI funds definitely meet this requirement.”
Over the last 12 months the DB Platinum IV CROCI US fund has raised over USD1 billion in assets.