Sustainable Conservative Equity

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 take an active approach to investor stewardship reflected in portfolio positioning.

The Sustainable Conservative equities strategy invests in global low-volatility stocks. Stock selection is the sole performance driver of our approach. All decisions are based on a stock ranking model which captures the low-risk anomaly in a smart way. The model aims to preserve equity capital and enhance the portfolio’s risk-return profile. Simultaneously, the portfolio construction process ensures a substantially higher sustainability profile.

The sustainability approach focuses on three aspects, namely aiming for at least a 20% better score on ESG criteria than the reference index; aiming for at least a 20% better environmental footprint than the reference index; and avoiding exposure to stocks in the values-based restricted universe according to certain broad ethical norms."

The strategy is available in different investment regions.

Our strategy is managed by an experienced group of investment professionals within an organization which 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.