We have for years helped clients achieve their unique investment objectives by applying in-depth research to buy-and-maintain portfolios with long investment horizons and low turnover. With our in-house combination of insurance and pension analytical capabilities, our market-leading global credit platform and our sustainable investing expertise, we are able to design high-quality and truly client-driven credit portfolios that have low turnover and which are sustainable. In addition to incorporating sustainability goals related to climate risk and the SDGs, our clients typically also require other specific objectives to be met, like avoiding fallen angels, maximizing capital and risk-adjusted returns, and matching a specific cashflow profile.
Buy-and-maintain strategies focus on long-term capital preservation by actively assessing downside risks throughout the market cycle. It is by nature a bespoke solution, designed to limit the probability of defaults, fallen angels and turnover, while at the same time achieving an attractive risk and capital-adjusted yield. A buy-and-maintain portfolio is judged by its ability to meet pre-determined and client-specific objectives instead of following or outperforming a specific benchmark. Close communication with the client is therefore a key factor for success.
After the design phase, the team maintains the portfolio with a strong focus on risk management, and ensures that every investment decision is and remains consistent with the client’s objectives. To ensure that all investment opportunities that present themselves during the maintain phase are captured, the team also uses proprietary tools to systematically scan both primary and secondary markets.
Our buy-and-maintain portfolios are built and managed by dedicated buy-and-maintain portfolio managers from the Insurance and Pension solutions team, working closely with the credit team. A clear split in responsibilities ensures all relevant areas get the full dedication they deserve, from portfolio optimization to continuous guarding of the credit quality of the portfolio and in-depth company analysis. The buy-and-maintain portfolio managers are skilled in customizing portfolios by deploying Robeco’s in-house proprietary research combined with a dedicated optimization framework. Our team has all the attributes needed to deliver this specialized solution: a strong global credit platform, market-leading sustainable investing expertise, and experience in building dedicated bespoke institutional solutions.
Our buy-and-maintain portfolios are often bespoke. We are able to apply a range of skills in various fixed income asset classes in order to meet the specific requirements of each client.
Head of Sustainable Multi Asset Solutions
The fact that buy-and-maintain is long term, risk-driven and bespoke creates some clear advantages for investing with sustainability in mind.
Each portfolio is designed to meet the client’s tailored sustainability needs. We are able to optimize for a range of sustainability objectives, including SDG and decarbonization targets.
Investing that aims to generate beneficial social and/or environmental effects
A central investment of a long-term portfolio
Keeping turnover low for long-term benefits
A true understanding of the topic has been in our DNA since the start