Objectives
Return: maximize on Sharpe ratio – with sustainable themes while not underperforming market
Beta: targeting a beta of 1 against the benchmark
Fund limit: maximum exposure 19% to be UCITS compliant
Investment Solutions case
An Asian client wanted to create a multi-thematic fund that focused on sustainability trends without compromising on returns. Their objective included maintaining a beta of 1 and maximize its Sharpe ratio – the performance of an investment compared to a risk-free asset such as cash.
How to attract younger investors to our ILP platform without compromising performance?
Solution
The solution was to combine six of Robeco's specialist sustainable strategies that achieved all these objectives. The multi-thematic offering included all three strategies in the renewable energy-related 'Smart' range – Smart Energy, Smart Mobility and Smart Materials – along with the Circular Economy, Sustainable Water and Healthy Living strategies.
Outcomes
The portfolio has outperformed the benchmark in terms of annualized returns and it also has a favorable risk-adjusted returns with a higher Sharpe ratio against benchmark.
Past performance is no guarantee of future results. The value of the investments may fluctuate. Annualized (for periods longer than one year).