Robeco has combined the latest innovation in quantitative research with its long-standing expertise in credits factor investing.
The application of factors to government bonds is the most recent development in the field of quantitative investing. Having originated in the 1970s with application to equities, factor investing moved to the realm of credits during the 1990s. With the ability now to apply factors to government bonds, too, it means that factor investing within fixed income has been extended from nearly a third of the asset class to over 75% coverage.
Robeco has combined this latest innovation in quantitative research, much of it driven by its own researchers, with its long-standing expertise in credits factor investing (read our white paper, ‘Factor investing in government bonds’). The result is the newly launched Robeco QI Global Multi-Factor Bonds fund.
Factor investing traditionally has focused on companies, whether within equity or credit markets. The shift to government bonds requires quants investors to define how to apply well-known factors like value in the context of government bonds – a new approach which to date has less coverage in academic research than equity factors. And yet, given the long data history for government bonds globally, there is plenty of useful data which makes this a viable avenue for factor investing.
Robeco QI Global Multi-Factor Bonds is one of the very first factor investing funds for aggregate fixed income that offers balanced exposure to five proven factors: low-risk, quality, value, momentum and size.
It follows a systematic, evidence-based strategy that enables it to achieve alpha without reliance on a specific market environment. The outperformance, which is measured against the Bloomberg Barclays Global Aggregate index, is accomplished through optimal exposure to proven factors in government bonds and credits.
The advantage of such a rules-driven approach is that it efficiently allows for risk-neutral portfolio construction, in the sense that the fund’s strategic risk profile is similar to that of the benchmark. At the same time, the fund can be tilted to an overweight or underweight duration positioning in a tactical way.
Due to portfolio enhancements that range from ESG integration and engagement to exclusions, the strategy ensures a high degree of sustainability.
The highly systematic nature of this solution serves as a style diversifier within an existing fixed income allocation. Adding the fund to a multi-manager portfolio therefore improves diversification and strengthens its risk-return profile.
The information contained on these pages is for marketing purposes and solely intended for Qualified Investors in accordance with the Swiss Collective Investment Schemes Act of 23 June 2006 (“CISA”) domiciled in Switzerland, Professional Clients in accordance with Annex II of the Markets in Financial Instruments Directive II (“MiFID II”) domiciled in the European Union und European Economic Area with a license to distribute / promote financial instruments in such capacity or herewith requesting respective information on products and services in their capacity as Professional Clients.
The Funds are domiciled in Luxembourg and The Netherlands. ACOLIN Fund Services AG, postal address: Affolternstrasse 56, 8050 Zürich, acts as the Swiss representative of the Fund(s). UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zurich, postal address: Europastrasse 2, P.O. Box, CH-8152 Opfikon, acts as the Swiss paying agent. The prospectus, the Key Investor Information Documents (KIIDs), the articles of association, the annual and semi-annual reports of the Fund(s) may be obtained, on simple request and free of charge, at the office of the Swiss representative ACOLIN Fund Services AG. The prospectuses are also available via the website www.robeco.ch. Some funds about which information is shown on these pages may fall outside the scope of the Swiss Collective Investment Schemes Act of 26 June 2006 (“CISA”) and therefore do not (need to) have a license from or registration with the Swiss Financial Market Supervisory Authority (FINMA).
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