The content displayed on this website is exclusively directed at qualified investors, as defined in the swiss collective investment schemes act of 23 june 2006 ("cisa") and its implementing ordinance, or at “independent asset managers” which meet additional requirements as set out below. Qualified investors are in particular regulated financial intermediaries such as banks, securities dealers, fund management companies and asset managers of collective investment schemes and central banks, regulated insurance companies, public entities and retirement benefits institutions with professional treasury or companies with professional treasury.
The contents, however, are not intended for non-qualified investors. By clicking "I agree" below, you confirm and acknowledge that you act in your capacity as qualified investor pursuant to CISA or as an “independent asset manager” who meets the additional requirements set out hereafter. In the event that you are an "independent asset manager" who meets all the requirements set out in Art. 3 para. 2 let. c) CISA in conjunction with Art. 3 CISO, by clicking "I Agree" below you confirm that you will use the content of this website only for those of your clients which are qualified investors pursuant to CISA.
Representative in Switzerland of the foreign funds registered with the Swiss Financial Market Supervisory Authority ("FINMA") for distribution in or from Switzerland to non-qualified investors is Robeco Switzerland AG, Josefstrasse 218, 8005 Zürich, and the paying agent is UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zürich. Please consult www.finma.ch for a list of FINMA registered funds.
Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco/Robeco Switzerland product should only be made after reading the related legal documents such as management regulations, articles of association, prospectuses, key investor information documents and annual and semi-annual reports, which can be all be obtained free of charge at this website, at the registered seat of the representative in Switzerland, as well as at the Robeco/Robeco Switzerland offices in each country where Robeco has a presence. In respect of the funds distributed in Switzerland, the place of performance and jurisdiction is the registered office of the representative in Switzerland.
This website is not directed to any person in any jurisdiction where, by reason of that person's nationality, residence or otherwise, the publication or availability of this website is prohibited. Persons in respect of whom such prohibitions apply must not access this website.
The introduction of new technologies in our everyday lives is increasing exponentially. The financial sector is no exception. Customers expect to get service anywhere, any time and on any device. In order for these new technologies to be used, they must be trustworthy. One of the conditions for being trustworthy is to be secure. The financial sector is most often targeted by criminals, loses most when breached, but underinvests in security. We believe this will change quickly, which creates investment opportunities.
Although developments in some parts of security (especially on the cyber side) are still in an early stage, valuations of companies in this area have already peaked. Many companies with exposure to the theme have rich valuations, as shown by the characteristics of security ETFs like HACK US or CIBR US. Currently it is hard to pinpoint clear winners.
In our investment analysis, we work with a corporate governance checklist to assess how far financial institutions are in terms of security. Several financials have already started to implement security solutions such as biometrics, advanced persistence threat detection and cybersecurity insurance. Although progress has been made, we see challenges for companies that are lagging behind, especially due to new regulations. Few senior executives have enough technical background to understand the underlying dynamics of security risks, and there is a more general lack of qualified personnel. Big structural changes are required, but as with many changes, it first needs to get worse before there is a feeling of urge to change.
In order for a financial institution to be well positioned it must have a strategy to be secure, vigilant and resilient with regard to security. Secure means reacting to currently known threats and making sure that the underlying application- and system security are up to date. Being vigilant implies being able to react quickly to new threats and continuously search for unfound breaches. The focus of resilience is to minimize damage once a breach has occurred and to develop a clear roadmap on how to respond to security issues. It goes without saying that we prefer financial companies with a clear strategy for being secure, vigilant and resilient.
Another way of looking at the theme from an investment perspective is to search for companies that are best positioned to supply financial institutions with the required security solutions. Within the preventive aspect it is important to have scale because of the commodity-like nature of the product offering. The products and services that are being offered are reasonably similar and price is the biggest differentiator. Within the vigilance aspect it is important to have a top-of-class product or service and price is less relevant. Offering unique solutions to deal with advanced threats is at the core of the companies in this segment, but there are no clear winners. Solutions for being resilient are still early stage. Companies that offer products and services to become resilient to security risks are no pure-plays. We see interesting developments here, but no pure-play investment opportunities, yet.
The security theme is broad and there is not just one correct way of approaching investment opportunities. Many of the companies we identified have exposure to almost all industries. Within the financial sector a lot of the basic infrastrucure to be installed is the same as in other industries, but there are also parts of the industry that require a more specialized approach. It is important to have a good understanding of the specific underlying mechanisms and risks, especially within payments.