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Rotterdam, 20 December 2016 – Robeco Institutional Asset Management B.V. (‘Robeco’) today announced an adjustment to the investment policy of equity fund Robeco N.V. This change will enable Robeco to better position itself for changing market circumstances and make Europe's oldest equity fund (1933) more future proof. Robeco also plans to change the fund's name to Robeco Global Stars Equities Fund N.V. This name change makes it clear that it is a global equity fund.
In the next few months, the fund, which manages assets worth around EUR 2.8 billion, will reduce the number of positions it holds from around 80 to a more concentrated portfolio of 30-40 stocks. This more concentrated investment approach is expected to improve the likelihood of good investment results, by investing only in companies which the Global Equity team is convinced will perform well. This approach is already used by the Luxembourg fund, Robeco Global Stars Equities, that has been managed by the same team for the eight years since its inception. The fund's investment philosophy will remain unchanged with a focus on stocks with attractive free cash flows and solid returns on invested capital. Sustainability criteria will also continue to play an important and prominent role in stock selection. These policy adjustments will be gradually phased in in the months to come. The fund's risk profile* will not change, the volatility will stay in line with current levels and the costs will remain the same.
The Global Equity team will remain responsible for managing the fund, with Mark Glazener as lead portfolio manager. Jan Keuppens, fund manager of the Luxembourg fund Robeco Global Stars Equities will become co-manager, adding expertise and experience in managing a concentrated portfolio.
Mark Glazener, head of the Global Equity team: “We believe that a more concentrated investment policy with less positions offers a better chance of achieving solid long-term performance in the current global equity markets. This adjustment is the next step in a longer-term trend towards streamlining the portfolio's focus. We think that this adjustment to the investment policy will make the fund more future proof and enable us to further build on the experience and track record we have established in more than eighty years.”
The proposed name change is subject to approval and will be put to the vote during an extraordinary general meeting of shareholders.
* The risk profile as documented in the Key Investor Information document.