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Sustainable Enhanced Indexing Equity

Sustainable Enhanced Indexing Equity

A sustainable alternative to passive investing

Key points

  • Delivering advanced sustainability exposure while offering market-like returns after costs
  • Significantly better ESG profile, smaller environmental footprint and exclusions
  • The strategy is fully customizable in terms of investment region, sustainability profile, expected outperformance and tracking error

Philosophy

Robeco’s quantitative investment strategies are based on the following beliefs:

Evidence-based research. Identifying factors that are rewarded with superior risk-adjusted performance. This includes extensive empirical testing over longer periods and in different markets.

Economic rationale. We want to move beyond statistical patterns and understand the economic drivers behind factors. Risks that are not adequately rewarded should be avoided.

Prudent investing. We manage easily explainable portfolios and prevent unnecessary trading costs, and we have preference for sustainable business models.

Process

Robeco's Sustainable Enhanced Indexing Equity strategy offers the advantages of passive investing while also targeting a superior sustainability profile. We overweight those index constituents that score highly on sustainability and underweight those that score poorly. As well as incorporating 50 years of academic insights, when ranking stocks or constructing the portfolio, we can also take into account stock characteristics proven to deliver superior returns. These characteristics are value, quality, momentum and analyst revisions.

The strategy can be customized, for example to target a high information ratio, a high sustainability profile or to maximize the sustainability profile while reducing the risk of underperformance. This customization can include the following elements:

  • An improvement of at least 20% on the market’s sustainability score
  • A 20% reduction of the environmental footprint based on impact scores
  • Exclusion of companies with controversial business models such as tobacco and firearms producers
  • Voting and engagement for portfolio holdings

Regions

The strategy is available for different investment regions: global developed and emerging markets.

Region

Global developed

Emerging markets

Benchmark

MSCI World Index

MSCI Emerging Markets

Information ratio target

0.5

0.7

Tracking error (expected average)

1.0%

1.5%

Number of stocks strategy

≈ 750

≈ 450

Inception date

November 2013

September 2019

Proven alternative to passive investing

Enhanced Indexing offers all the benefits of passive investing, while compensating for its many disadvantages.

Read more

Team

Our strategy is managed by an experienced group of investment professionals within an organization that is fully committed to quantitative investing. The team consists of more than 40 portfolio managers and quantitative researchers, dedicated solely to quantitative investing, research and model development. The team closely cooperates with a dedicated sustainability research team, which focuses exclusively on ESG and provides the stock-specific sustainability information for the strategy.

Get in touch with us

Contact us if you would like to know more about this strategy.

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Disclaimer Robeco Switzerland Ltd.

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). 

Some funds about which information is shown on this website may not be available in your domicile country. Please check the registration status in your respective domicile country. To view the RobecoSwitzerland Ltd. products that are registered/available in your country, please go to the respective Fund Selector, which can be found on this website and select your country of domicile. 

Neither information nor any opinion expressed on this 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 Switzerland Ltd. product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports. 

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