Deutsche Bank launches US dividend fund
Deutsche Bank has launched a US Dividend Fund for its db-X funds structured funds division.
The new fund will provide investors with exposure to US dividend-paying stocks using its proprietary CROCI stock selection methodology.
The fund’s returns are inked to the CROCI US Dividends Net Return index, which aims to identify shares in the S&P 500 with above average sustainable dividend yields.
The strategy excludes stocks that pay no or below average dividends, as well as those with the lowest cash returns, highest financial leverage and highest volatility. It also excludes financial stocks and stocks with low liquidity. A maximum of 40 shares are selected for the portfolio based on price-to-earnings ratios.
Alex McKenna, head of db-X funds, said: “There is clear demand from investors for dividend-focused strategies. This, together with the popularity of the CROCI Global Dividends funds, has encouraged us to launch a separate fund investing solely in US markets.”
The DB Platinum CROCI Global Dividends fund has swelled to $85m in assets in just three months since launch.
But Deutsche Bank is not the only investment firm that sees potential in US dividend stocks. Among its peers bullish on this strategy are also Legg Mason’s sister firm ClearBridge Advisors and Schroders. Both expect the US dividend story to remain attractive in the coming year.
DB Platinum CROCI US Dividends has launched with a dozen share classes in euro, sterling and US dollars. Like all db-X funds’ products, the new fund is open-ended.