SDG Equity
Key points:
- Invests in companies creating significant social and environmental impact via the UN SDGs
- Applies a proprietary SDG framework to systematically quantify companies’ SDG contributions
- Combines fundamental analysis with portfolio optimization methods to minimize risk
Philosophy
Our investment philosophy is grounded in the core belief that the integration of ESG factors into a disciplined, research-driven investment process leads to better-informed investment decisions and better risk-adjusted returns through an economic cycle.
Building on our proprietary data and research, we identify companies that generate a competitive advantage through sound business practices, efficiency improvements, and the creation of new solutions for the myriad challenges facing society over the coming decades.
Taking a long-term investment perspective, we analyze companies’ business models, market positioning and growth potential, and evaluate their financial performance and valuation. Based on this fundamental assessment, we seek to uncover attractive investment opportunities and implement them in concentrated, conviction-based equity portfolios.
Process
The strategy applies a disciplined investment process that enables the construction of a concentrated portfolio reflecting high-conviction investment opportunities while reducing overall volatility. There are four decision steps: an initial impact universe is built, corporate sustainability is enhanced, investment opportunities are identified, and the portfolio is constructed.
The proprietary Robeco SDG framework maps companies on the different SDGs. An industry-specific set of KPIs supports objective, consistent decision-making and leads to a quantified rating, measuring a company’s contribution to the SDGs. Fundamental research then provides the basis for the selection of those companies that exhibit a strong competitive position and a solid financial performance. Portfolio construction is based on an optimization process that selects holdings and defines weightings. The calculation incorporates high-conviction ideas and ensures diversification among the SDGs.
Team
The Global SDG Equity strategy is managed by a seasoned investment team, which consists of a stable and experienced portfolio management team and research analysts with individual sector specializations. All team members are directly involved in research on a company level. They perform company screening and work on the fundamental investment cases. They cooperate with the SI Research analysts, who assess sectors and companies from a sustainability and SDG impact perspective
