DWS Invest CROCI Global Dividends LC (A8Q0)

Overview

DWS Invest CROCI Global Dividends LC is a specialized equity mutual fund that primarily focuses on large-cap stocks within developed global markets. Utilizing its proprietary CROCI (Cash Return on Capital Invested) methodology, the fund strategically selects around 50 equities characterized by the lowest CROCI Economic Price Earnings Ratios. This meticulous selection process incorporates criteria aimed at ensuring sustainable dividends through assessments of cash returns, financial leverage, and volatility. Notably, stocks with zero or below-median dividend yields are omitted from the portfolio, emphasizing a commitment to retaining high-quality, dividend-paying companies. The geographical composition of the fund is notably centered on the United States, covering approximately 44-48% of its investments, with additional allocations to markets such as Japan (14-18%), France, the United Kingdom, and Switzerland. Emphasizing sectors that foster stable income generation, the fund is managed by DWS and adopts an equal-weighted strategy that undergoes periodic reconstitution. As a result of its concentrated equity approach and investment strategy, the fund displays elevated volatility, making it suitable for risk-tolerant investors. The fund offers a competitive dividend yield, typically ranging from 3.8% to 3.9%, supported by an average market capitalization exceeding $80 billion USD.

Products and Services

• Equity Mutual Fund

  The primary product offered is an equity mutual fund that invests heavily in large-cap stocks from around the globe, particularly from developed markets. This fund aims to deliver attractive returns through a mix of capital appreciation and consistent dividend income.

• CROCI Methodology

  Employing a proprietary selection process known as the CROCI methodology, the fund identifies equities with optimal economic pricing relative to their earnings, focusing especially on those with stable dividend yields and sustainable financial health.

• Global Diversification

  The fund features a geographically diversified portfolio that includes significant stakes in the United States, Japan, France, the UK, and Switzerland, allowing investors to benefit from global economic growth and sector performance.

• Dividend Policy

  Targeting high-quality, dividend-paying companies, the fund enhances portfolio security and income generation by mandating sustainability in dividend payments, thereby selecting equities that showcase robust cash flow and minimal volatility.

• Multiple Share Classes

  The fund provides various share classes, catering to different investor preferences, including accumulating and distributing options in both EUR and USD, thus accommodating a wide audience with different investment goals and strategies.

• Performance Metrics

  Investors can benefit from a competitive average dividend yield of approximately 3.8-3.9%, alongside a robust average market capitalization exceeding $80 billion, ensuring a focus on established firms with stable financial frameworks.

• Periodic Reconstitution

  To maintain its investment strategy and adapt to changing market conditions, the fund undergoes periodic reconstitution, helping it stay responsive to economic shifts and investor needs.