DWS Invest CROCI Euro LC (H4U0)

Overview

DWS Invest CROCI Euro LC is an actively managed equity fund that targets large-cap companies within the Eurozone. The fund’s primary aim is to achieve long-term capital appreciation by aiming to exceed the performance of the EURO STOXX 50 (RI). This is accomplished through a meticulous and valuation-centric stock selection strategy. The fund incorporates the proprietary CROCI (Cash Return on Capital Invested) methodology, which makes necessary adjustments to reported financials to calculate an economic price-earnings ratio. This approach allows the fund to pinpoint the 30 Eurozone stocks that exhibit the lowest CROCI economic P/E ratio at every rebalancing period. Excluding financial and real estate companies from its investment universe, the fund's portfolio is strategically skewed toward sectors such as consumer staples, industrials, health care, and utilities. Typically, the holdings within the portfolio are equally weighted, and investments are predominantly made in euro-denominated equities. Positioned within the realm of European large-cap equities, DWS Invest CROCI Euro LC is tailored for investors who are looking to engage with the Eurozone equity market through a systematic, fundamentals-oriented approach that employs a clear, rules-based stock selection process.

Products and Services

• Actively Managed Equity Fund

  The DWS Invest CROCI Euro LC fund is designed to actively manage investments in large-cap companies within the Eurozone. Its strategy involves regular assessment and adjustment of stock holdings to capitalize on opportunities for long-term growth.

• CROCI Methodology

  This proprietary method, Cash Return on Capital Invested, is pivotal for determining the economic price-earnings ratio. By recalibrating reported financials, this methodology ensures that the fund selects the stocks presenting the best valuation characteristics at each rebalancing.

• Sector Exclusions

  DWS Invest CROCI Euro LC deliberately excludes financial and real estate companies from its investment scope. This strategic choice enables a focused investment allocation toward other sectors, such as consumer staples, health care, industrials, and utilities, potentially reducing sector-related volatility.

• Equally Weighted Portfolio

  The fund typically practices an equal-weighting approach across selected stocks within its portfolio. This strategy facilitates a balanced exposure and can mitigate risks related to sector dominance of any single investment.

• Euro-Denominated Equity Investments

  Investments made through DWS Invest CROCI Euro LC are almost exclusively in euro-denominated equities. This focus ensures that the fund is directly aligned with the Eurozone economic environment, which is beneficial for investors dealing in euros.

• Transparent Stock Selection Framework

  The investment approach employed by DWS Invest CROCI Euro LC is governed by a clear, rules-driven stock selection process. This transparency helps investors understand how investment decisions are made, enhancing confidence in the fund’s strategy and performance.