The Fund was launched in the Australian market in December 2021, and aims for a higher score on Environmental, Social and Governance (ESG) criteria than its benchmark, MSCI World Index.

The fund also aims to reduce the environmental footprint for greenhouse gas emissions, water use, and waste generation compared to the benchmark, while maintaining the ability to provide alpha in developed markets.

In rating the Fund, the Lonsec report concluded Robeco has a “highly experienced and generally stable investment team applying a logical, well-developed and consistently applied investment approach.”

Further, the report also noted “Robeco has a strong pedigree in sustainable investing and the SDG/impact framework is seen as robust and well-developed with specialist resourcing.”

According to Robeco Australia and New Zealand managing director, Stephen Dennis, a highly recommended rating when the Fund is first brought to the market is testament to the investment skills and capabilities of the team.

“The Fund is attracting particularly strong levels of interest from institutional investors in the domestic market and given the heightened focus on ESG and sustainable investing, we expect this to continue for some time yet.

“Following the COP26 Summit in Glasgow last year, investors are now demanding more from their investments, and are rightfully voting with their feet in reducing their own carbon footprint. There’s real momentum in sustainable investing, and this Fund is designed with the conscious investor in mind,” he said.

Robeco’s enhanced indexing strategies use an extensive values-based exclusion list and includes voting and engagement, which is undertaken by Robeco’s Active Ownership team.

The fund uses a quantitative stock selection strategy which ranks stocks according to their expected future relative performance using the factors value, quality, momentum and earnings revisions, as well as sustainability criteria, resulting in a well-diversified portfolio with a low tracking error relative to the index.

As of 31 March 2022, Robeco manages over AUD 48 billion of assets globally in its Enhanced Indexing strategies, of which AUD 11 billion are managed on behalf of investors in Australia and New Zealand.

Victor Verberk

The Robeco SDG Credit Income Fund (AUD Hedged) (“Fund”) has received a recommended rating from independent research house, Lonsec.

Robeco launched the Fund – which aims to contribute to realising the 17 UN Sustainable Development Goals (“SDG”) – for Australian investors in November 2020. It feeds into the Luxembourg-domiciled strategy launched in May 2018, and has since attracted USD 1.2 billion in assets under management globally as of 31 March 2021.

The strategy is managed by Robeco’s global credits team including the CIO of fixed income and sustainability, Victor Verberk, and portfolio managers Reinout Schapers and Evert Giesen are jointly responsible for the management of the Fund.

The sustainable investing team, led by Carola van Lamoen, is responsible for the framework, data and assessment of names relative to the SDG’s.

In assessing the Fund, the report said: “Robeco has a strong pedigree in sustainable investing and the SDG/impact framework is seen as robust and well-developed with specialist resourcing.

“Overall ESG integration across the investment process for the Fund was strong and demonstrated a leading position relative to peers in this sector.”

Robeco Australia head, Stephen Dennis, said: “Receiving a ‘recommended’ rating from Lonsec is a strong endorsement of the Fund and increases its appeal to financial advisers. With our expertise in sustainable investing and credits, Robeco is well placed to meet the demand in the market for quality sustainable credit funds.”

The Robeco SDG Credit Income Fund (AUD Hedged) is an actively managed global credit strategy that invests in opportunities across different segments of the credit market, ranging from investment grade to emerging markets credits, to high yield.

It aims to provide a monthly income distribution and achieve an attractive yield currently about four per cent per annum, while managing downside risk and mapping the impact of the portfolio’s contributions to the SDG’s.

The recommended rating from Lonsec for Robeco SDG Credit Income Fund (AUD Hedged) sits alongside the recommended rating from research consultancy, Zenith Investment Partners.

The Robeco SDG Credit Income Fund is now accessible in the Australian market and applies Robeco’s proprietary SDG assessment framework in screening companies that contribute positively to the SDGs. The SDGs are a call for action embedded in a set of 17 goals and a further 169 targets for government, business and society to collaborate on reducing inequality, eradicating poverty and protecting the environment.

Robeco Australia head Stephen Dennis said: “The launch of the fund in the local market provides investors the opportunity to tap into Robeco’s global expertise in credit investing, and market-leading approach to sustainable investing. Local wholesale and institutional investors are increasingly responding to the sustainability demands of their clients and members, and the ability to access the SDG Credit Income Fund is a development that will be welcomed by them.”

The Robeco SDG Credit Income Fund is an actively managed global credit strategy that can invest in opportunities across the different segments of the credit market, ranging from investment grade to emerging markets credits, to high yield. It aims to achieve an attractive yield and provide a monthly income distribution of about 4% to 6%, whilst managing downside risk and mapping the impact of the portfolio’s contributions to the SDGs.

The strategy is managed by Robeco’s credit team, which consists of over 30 portfolio managers and credit analysts. Robeco’s credit team manages AUD 57 billion of assets in fundamental and quantitative credit strategies globally and have been fully incorporating ESG analysis in its investment process since 2010.

September 2020 marked the fifth anniversary of the adoption of the SDGs, with Robeco urging the global investment community to do more as part of the wider 2030 Agenda for Sustainable Development. The UN’s “Decade of Action” has kicked off to ensure the SDGs are achieved in the next ten years.

“Sustainable investing is not going away; in fact, it’s only going to continue to evolve and attract further investor demand. Investors are in a unique position to direct capital to companies that provide solutions to sustainability challenges. Robeco’s focus on this area over a long period of time means we’ve been able to refine our processes, and continue to offer investors products that not only generate market-leading returns, but also contribute on a practical level to the objectives of the UN SDGs,” Mr Dennis said.

Robeco and RobecoSAM received A+ scores for all aspects of their sustainability approach and the investment modules that were applicable to them in the PRI Assessment Report 2020. Robeco has been a signatory of the PRI since 2006; RobecoSAM since 2007.

According to Robeco Australia and New Zealand managing director, Stephen Dennis, the scores are testament to the asset manager continuing to build on its sustainability capabilities both globally and locally.

“Robeco is a highly regarded sustainability investor globally and our focus here in Australia and New Zealand is no different. Ownership of RobecoSAM gives Robeco a clear advantage in the market and, as a manager, our strategy of placing sustainability at the forefront of investment decisions is something we’re proud of; it’s good for clients, it’s good for business, and it contributes to societal needs and expectations.

“Sustainable investing has become increasingly mainstream in recent years, and the current environment is only clearing the path for an even greater focus on Environmental Social and Governance (ESG) criteria. The fact we can execute these strategies effectively by generating above-market returns while contributing to the greater good is a credit to the broader Robeco business,” said Mr Dennis.

Robeco was also awarded the top spot of the leaderboard in the ShareAction responsible investment assessment in March this year, which further demonstrates its ongoing commitment to rigorous stewardship and focus on ESG integration.

Read the report.

Robeco’s Enhanced Indexing strategy aims to deliver better than market returns after costs while integrating value, momentum and quality factors. The strategy also incorporates sustainability criteria throughout the investment process.

Robeco Australia head Stephen Dennis said the appointment by Energy Super follows the strategy’s strong performance track record.

“This strategy is an attractive solution for superannuation funds looking for enhanced market returns, while improving the sustainability profile of their portfolios,” he said.

The mandate is managed by Robeco’s Quantitative Equities team, which consists of more than 40 portfolio managers and quantitative researchers dedicated to quantitative investing, research and model development. As at September 2019, Robeco managed $116 billion based on quantitative models.

Robeco’s Enhanced Indexing strategy is a proven alternative to passive investing as it offers all the benefits of this investment style while compensating for its disadvantages, such as enabling the comprehensive integration of environmental, social and governance (ESG) characteristics at every step of the investment process. For example, ranking methodologies based on sustainability scores are introduced in the portfolio construction process. In addition, Robeco’s Active Ownership team actively engage with companies to make an impact. As at September 2019, Robeco managed over $200 billion in assets with ESG-integration.

Matthew Drennan

Robeco has launched a Multi Factor Absolute Return fund in Australia, adding to its suite of factor investing strategies offered to local investors.

The Robeco Multi Factor Absolute Return Fund (AUD) has an enhanced sustainability profile, and targets a 6% absolute return over cash, with a volatility of 8%, and also offers daily liquidity.

The strategy harvests six proven factors across asset classes: value, momentum, low-risk, quality, carry and flow. It is managed by Robeco’s Quant Allocation team headed by Guido Baltussen and Pim van Vliet. The strategy provides clients with balanced factor exposure across global markets in a market neutral way and leverages off Robeco’s and RobecoSAM’s expertise in sustainability.

The strategy has gained early traction in the Australian market with Zurich Investments recently awarding Robeco an investment mandate in Zurich’s diversified funds.

Matthew Drennan, head of savings and investments at Zurich, said “Robeco has a strong history in factor investing. The Multi Factor Absolute Return fund efficiently harvests a diverse range of factor premiums across a broad range of asset classes. The strategy is constructed to deliver returns across different market environments, making it a suitable addition to Zurich’s diversified funds including the Managed Growth Fund.”

Stephen Dennis, head of Robeco Australia, said: “This strategy brings together Robeco’s strengths in sustainability and factor investing – in credits, equities, commodities, currencies – in an absolute return structure. This liquid alternatives strategy has low correlation with traditional asset classes resulting in an ideal addition in portfolio construction.”

Besides this new absolute return strategy, Robeco also offers Australian investors access to three factor-based equity solutions. The Robeco Conservative Equities strategies, which provide exposure to the low-volatility factor, aim to capture equity premium with substantially lower downside risk, and invests in emerging markets and in developed markets. The Robeco Global DM Multi-Factor Equity Alpha strategy provides a balanced diversified exposure to the value, momentum and quality factors. All funds integrate sustainability criteria in its investment process.

Robeco manages over AUD 302 billion in assets globally, of which over AUD 117 billion are in quantitative investment strategies.

Ross Piper

Robeco has been selected for a $100-million mandate by Christian Super for its Enhanced Indexing strategy. The expertise and experience of Robeco in integrating environmental, social and governance (ESG) criteria in investment decisions was an important factor in the decision.

Robeco Enhanced Indexing Equities is an alternative to passive investing for investors looking for stable outperformance after costs with a low tracking error, whilst integrating sustainability criteria.

Stephen Dennis, Head of Robeco Australia: “Robeco’s Enhanced Indexing strategies are a great solution for superannuation funds that want to integrate tailored sustainability preferences while enhancing market returns. Robeco has been a leader in sustainability investing for over two decades, managing over $160 billion globally on the basis of integrating ESG criteria in our investment process. We are delighted to offer this strategy to Australian superannuation funds looking for sustainable investment solutions and are looking forward to working with Christian Super to achieve their sustainable investment goals.”

Ross Piper, CEO of Christian Super: “Christian Super is delighted to be partnering with Robeco as we continue to deepen the integration of ESG factors across our investment portfolio.  Our organisations share a deep commitment to responsible investment, and a long track record of integrating sustainability factors into the way we invest.”

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Ross Piper

Robeco has been selected for a $100-million mandate by Christian Super for its Enhanced Indexing strategy. The expertise and experience of Robeco in integrating environmental, social and governance (ESG) criteria in investment decisions was an important factor in the decision.

Robeco Enhanced Indexing Equities is an alternative to passive investing for investors looking for stable outperformance after costs with a low tracking error, whilst integrating sustainability criteria.

Stephen Dennis, Head of Robeco Australia: “Robeco’s Enhanced Indexing strategies are a great solution for superannuation funds that want to integrate tailored sustainability preferences while enhancing market returns. Robeco has been a leader in sustainability investing for over two decades, managing over $160 billion globally on the basis of integrating ESG criteria in our investment process. We are delighted to offer this strategy to Australian superannuation funds looking for sustainable investment solutions and are looking forward to working with Christian Super to achieve their sustainable investment goals.”

Ross Piper, CEO of Christian Super: “Christian Super is delighted to be partnering with Robeco as we continue to deepen the integration of ESG factors across our investment portfolio.  Our organisations share a deep commitment to responsible investment, and a long track record of integrating sustainability factors into the way we invest.”

The post Christian Super appoints Robeco for enhanced indexing mandate appeared first on AdviserVoice.

Stephen Dennis said the new appointment is a result of continued business growth in the Australian market, with funds under management for the business now in excess of AUD 5 billion: “Chris is a welcome addition to the team, and he has a strong track record in working with a variety of clients, with more than 19 years’ experience in the financial services industry. As our business grows we want to ensure that we continue to be resourced properly, to work collaboratively with our clients across asset classes. Chris’ appointment comes at an opportune time, as we are seeing a significant increase in the demand for sustainability considerations to be integrated into client portfolios.”

Chris Wildman joins Robeco from Mirae Asset Global Investments, where he was responsible for establishing the business in Australia and managing the overall distribution across institutional and wholesale investors. Prior to joining Mirae, he held various roles at AMP Capital Investors, working mainly with Australian institutional investors. Chris holds a BSc (Hons) in Industrial Business Systems from De Montfort University. 

Joop Huij

Robeco has added a factor investing module to its online platform Robeco Essentials. This unique online training tool allows Australian based investment professionals to learn the background and create insights on factor investing, while accrue hours towards their CPD accreditation.

The factor investing module comprises building blocks that can be accessed for self-study purposes. Each building block includes educational content presented not only in text, but also in the form of animated videos, charts, case studies and a summary. Once all of the building blocks have been completed, participants can take the test, that counts for CPD accreditation.

The need for education is increasing and by launching this online platform, Robeco aims to share its wealth of knowledge and expertise on key topics, to enable financial professionals to further improve their skills and help their clients achieve their investment goals. This module follows on from the first module on Sustainable Investing, which went live last year. Both modules are now available online for investment professionals.

Stephen Dennis, Head of Robeco Australia: “In conversations with clients, we noticed a desire for educational materials that help investment professionals gain a better understanding of certain themes. Research lies at the heart of everything we do and given our 90 years of investment experience, we feel it as our responsibility to share our knowledge on highly relevant themes such as factor investing and sustainable investing with our clients.”

Joop Huij, Head of Factor Investing Equities and Factor Index Research: “Factor investing is no longer considered a niche. We’ve been leading the way in factor investing for over 25 years, and are convinced that in order to provide informed advise, or make the right decisions, sufficient knowledge is instrumental – certainly when it comes to implementing a factor investing strategy. We see it as our duty to help investment professionals and share our expertise, therefore I am excited to have launched this module.”   

Matthew Young will lead the continued development of Robeco’s relationships with financial advisers and promote Robeco’s investment strategies, including emerging markets Conservative Equity (low volatility) and global equities. He will service Australia and report to Stephen Dennis, Robeco’s Managing Director for Australia and New Zealand.

“I am excited to welcome Matthew to the team. Given his strong investment background, Matthew is well positioned to provide long-term wholesale solutions and to deepen relationships with financial advisers and researchers in the market,” Mr. Dennis said.

“Low volatility and emerging markets strategies have become two of the most discussed equity investment strategies among investors lately. We see that a low-volatility strategy in emerging markets will allow investors to benefit from emerging market equity returns at substantially lower risk. To add to our unit trust offerings, our award-winning Robeco Boston Partners global equity strategy will also be available to Australian investors soon.”

“Matthew will play a crucial role in bringing Robeco’s innovative capabilities to the market.,” Mr Dennis added.

Matthew Young joins Robeco from Blackrock, where he was Vice President. Prior to that, he was a Business Development Manager at Colonial First State. Young has over 12 years of investment experience in wealth management and retail distribution in Sydney.