Disclaimer

The information contained in the website is solely intended for professional investors. Some funds shown on this website fall outside the scope of the Dutch Act on the Financial Supervision (Wet op het financieel toezicht) and therefore do not (need to) have a license from the Authority for the Financial Markets (AFM).

The funds shown on this website may not be available in your country. Please select your country website (top right corner) to view the products that are available in your country.

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 product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.

By clicking Proceed I confirm that I am a professional investor and that I have read, understood and accept the terms of use for this website.

Decline

Risk due diligence approach

An approach* to implementing factor investing. An analysis is made to establish whether the current portfolio is suitably distributed over factors and does not incorporate excessive risk. This can be done using the 'Robeco Factor Exposure Monitor'.

The advantage of this approach is that investors obtain greater insight into their exposure to specific factors in the portfolio. It also helps determine whether the portfolio contains desired or undesired concentrations of factors. It then becomes easier to assess the sensitivity of the portfolio in specific scenarios.

The chart below shows a hypothetical portfolio of factor overweights and underweights. Per factor the portfolio has three subdivisions into levels of exposure: substantial (top), average (middle) and low (bottom).

Figure 8. Relative factor exposures of portfolios
Source: Robeco, Quantitative Research, 2014

* Other approaches involve using factor tilts and a system of portfolio optimization based exclusively on factors.