Equity Global Quality
The DB Equity Quality Factor Index aims to outperform the equity market (represented by the MSCI World Index), through a quality-based investment strategy. The Index selects constituents from shares of large and medium sized companies across approximately 31 developed market countries. The shares are selected using a quality-based strategy which analyses the quality of companies’ earnings. This strategy is based on the assumption that at certain times companies with high quality earnings outperform, and companies with lower quality earnings underperform, the equity market generally. The strategy uses a rules based formula to analyze the shares comprising the MSCI World Index and calculates a “quality score” for each share, based on a combination of return on invested capital (ROIC) and accruals.