DWS Invest CROCI US LCH (YB70)

Overview

DWS Invest CROCI US LCH is a share class of an equity mutual fund managed by DWS that targets large-cap US stocks. Utilizing the proprietary CROCI (Cash Return on Capital Invested) methodology, the fund focuses on selecting approximately 40 equities that demonstrate the lowest CROCI Economic Price Earnings Ratios, working toward achieving an equal weighting within its portfolio. A significant aspect of the fund's strategy is the exclusion of Financials and Real Estate sectors, thereby allowing for concentrated investments primarily in Health Care (around 29%), Consumer Staples (16%), and Consumer Discretionary sectors (15%). The fund also holds positions across Communication Services, Information Technology, Energy, and Industrials. Representing a commitment to US equities, the fund maintains almost 100% allocation within this space, primarily targeting companies with market capitalizations exceeding $10 billion and is denominated in EUR for this specific share class.

With its origins tracing back to 2004 via a predecessor fund merged in 2018, DWS Invest CROCI US LCH currently manages approximately $526 million in assets. The fund is designed for risk-tolerant investors who are prepared to navigate volatility in pursuit of substantial returns. Its portfolio is periodically reconstituted and plays a crucial role in providing active exposure to US equity markets through a value-oriented, quantitatively driven investment strategy.

Products and Services

• Equity Mutual Fund: DWS Invest CROCI US LCH serves as an equity mutual fund that focuses primarily on large-cap US stocks, providing investors with a simplified approach to gain exposure to selected top-performing equities in the market.
• CROCI Methodology: The proprietary Cash Return on Capital Invested (CROCI) methodology is employed to identify the most promising stocks, focusing on those with lower Economic Price Earnings Ratios, thus emphasizing value-driven investment opportunities.
• Portfolio Diversification: The fund builds its portfolio by selecting approximately 40 equities with an equal weighting strategy, facilitating diversification across various sectors while maintaining a focus on high-conviction assets.
• Sector Exclusions: Notably, the fund excludes the Financials and Real Estate sectors, allowing for concentrated investments in more favorable sectors, primarily focusing on Health Care, Consumer Staples, and Consumer Discretionary fields.
• Investment Focus: The fund emphasizes investment in US companies with substantial market capitalizations (over $10 billion), positioning itself to capitalize on the growth potential within solid, established businesses.
• Diversified Sector Allocations: Significant allocations in Healthcare (around 29%), Consumer Staples (16%), and Consumer Discretionary (15%) are complemented by exposure in Communication Services, Information Technology, Energy, and Industrials to enhance growth opportunities.
• Active Management: DWS Invest CROCI US LCH is managed with a focus on active investment strategies, permitting the fund to adapt to market changes and identify emerging trends within the equity landscape.
• EUR Denomination: The specific share class is denominated in EUR, catering to investors interested in currency considerations while investing in US equity markets.
• Target Investor Profile: This fund is particularly suited for risk-tolerant investors who are willing to accept high volatility for the potential of achieving superior returns over the long term.
• Periodic Reconstitution: The fund's portfolio is regularly reconstituted, ensuring it remains aligned with the latest market trends and investment opportunities, thus maintaining its value-oriented focus.