Sustainability is integrated from the top down and bottom up
The Expected Returns is a key input for active asset allocation
Diversification comes from Robeco’s wide range of strategies
A multi-asset strategy uses diversification between and within asset classes to reduce risk and add returns. This approach helps to safely navigate the potentially tricky waters created by the ever-changing political and economic environment.
Multi-asset funds tend to offer a more stable investment journey, especially when investing to meet future liabilities. If one asset class or one investment approach faces strong headwinds, the impact on the overall performance is much less material.
The multi-asset team aims to bring together the very best of Robeco’s investment capabilities through a range of diversified funds and solutions.
We believe financial markets are often inefficient and active management can generate alpha. Investors’ narrow focus hinders a smooth distribution of information across different asset classes. The investment process should instead be a structured, active and fundamental top-down approach.
We use fundamental research to identify alpha opportunities from active asset allocation. After deploying the five-year Expected Returns to start building a robust portfolio, tactical asset allocation aims to exploit market inefficiencies and manage downside risk.
We aim to select the optimal mix of Robeco’s investment strategies. We believe that combining different Robeco investment approaches (fundamental/quant/thematic) enhances diversification and improves risk-adjusted returns for clients.
We use metrics such as overall equity portfolio beta, duration, and Duration Times Spread to effectively manage and monitor the implementation of active asset allocation views from an absolute and relative perspective.
We also conduct a full analysis of the underlying Robeco strategy exposures to better understand and manage the risk and factor exposures.
There are currently 15 people in the Sustainable Multi-Asset Solutions team, with an average of more than 15 years investment experience and more than ten years working at Robeco. The three most senior investors have over 90 years cumulative experience investing through many economic and business cycles. The team manages all Robeco’s fundamental multi-asset solutions, from retail funds to institutional mandates.
For sustainability, the team can rely on the expertise of the 50-strong Sustainable Investing Centre of Expertise, which houses our sustainability thought leaders and investment researchers, alongside our market-leading Active Ownership team. And of course, investment professionals across all Robeco departments are available to provide advice when necessary.
Sustainability is at the heart of all our Sustainable Multi-Asset Solutions. Our depth of resources and research allows us to tailor investment solutions to align with clients’ sustainability ambitions. In practice, this means we are able to measure and steer any multi-asset portfolio on a wide range of environmental, social and governance dimensions (the ESG profile), decarbonization aims and SDGs based on our sustainability framework.
All of our funds are line-by-line as opposed to fund of funds, which creates a sustainability perspective that we can monitor, where we can exclude unsuitable companies at an individual security level. We also factor in the impact of climate change on our medium-term asset class return forecasts.
Performance and volatility estimates are based on average annualized returns over the market cycle.
This strategy has a balanced balanced approach that actively focuses on generating a stable income of 5% from bonds and capital appreciation largely from equities, though with a wider focus on downside protection. It has a target volatility of 7%.
This strategy aims for a stable capital growth over time through a balanced mix of bonds and equities. It aims for an average annual return of 6% or more with a target volatility of 10%.
This strategy has a higher risk profile, with an investment objective of achieving equity-like returns, but with less equity-like risk. It aims for an average annual return of 7% or more with a target volatility of 12%.
This strategy will target an annual return of the market rate for cash plus 4%, and unlike the other three, will not follow a traditional benchmark.
A true understanding of the topic has been in our DNA since the start
Flexible and opportunistic when implementing investment views
A mix of low correlated sustainable assets support a stable investment journey
