Deutsche Asset & Wealth Management (Deutsche AWM) has expanded its CROCI (Cash Return on Capital Invested) suite of ‘real value’ investments with the addition of a large-cap UK fund.
The DB Platinum CROCI UK fund uses Deutsche AWM's established CROCI valuation methodology to invest in a concentrated portfolio of 30 companies, selected from the FTSE 100, that have the most attractive economic valuations according to the CROCI team’s methodology. Re-evaluation of the portfolio is done on a quarterly basis.
Over EUR1 billion of net new assets has flowed into CROCI funds this year (as at 22 September 2014), while there is over EUR11 billion invested in CROCI strategies overall.
Francesco Curto, Deutsche AWM’s head of CROCI, says: “Value investing via CROCI is delivering for investors over the long-term, as shown by our CROCI funds providing exposure to the US, European and Japanese equity markets, which have produced above-market returns in the ten years since their launch in 2004. We are therefore confident we will see strong demand for the new CROCI UK fund.”
The CROCI methodology was established in 1996 as a way to assess the fundamental value of companies, sectors and markets. The process involves a team of 60 dedicated analysts making a series of systematic adjustments to company accounts to establish valuation metrics unhindered by accounting conventions or distortions. The aim is to identify stocks for potential investment that are undervalued while avoiding the most over-valued companies.