Financial Trends Equity
Key points:
- Invests in multiple financial trends: aging finance, digital finance and emerging finance
- Searches for excellent executors within these trends
- Truly global perspective in terms of regions, sectors and industries; high active share
Philosophy
The global financials equity strategy invests worldwide in stocks of companies in the financial sector and in IT companies related to the financial industry. The investment philosophy is based on our conviction that we can generate alpha:
- Top-down – by identifying the most appealing trends and themes relating to the financials sector at an early stage; and
- Bottom-up – by selecting attractively priced stocks that are set to benefit from these trends and themes.
Process
Our investment process consists of three steps. First, top-down identification of the trends and themes that offer the highest growth potential. The three main trends are aging finance, digital finance and emerging finance. Second, bottom-up stock selection that ensures high exposure to the selected themes, applies fundamental and quantitative research, and finds companies with attractive valuations. The third step is portfolio construction, which is based on conviction level, risk, diversification per trend and a strict buy and sell discipline.
Team
The global financials equity strategy is managed by the Financials-Fintech portfolio management team. It consists of three seasoned portfolio managers and is part of the larger Trends Equities team. This team is responsible for a range of trend strategies that are expected to provide above average returns by profiting from long term structural trends. The portfolio managers of this strategy have access to Robeco’s sector, emerging markets and sustainability analysts.
