The investment philosophy for the Megatrends Equity strategy is based on our conviction that we can generate alpha:
Our investment process consists of three steps. The first involves the top-down identification of long-term megatrends from a global, well-diversified perspective. The four major long-term trends are the digital world, emerging middle class, industrial renaissance and healthy aging. The second step is the bottom-up selection of companies that combine high exposure to the selected themes with upside potential. And the third step is careful portfolio construction. The position sizing that forms part of this final stage of the process is based on conviction level and risk-return trade off.
The Megatrends Equity strategy is managed by two portfolio managers. They are supported by two trend researchers and the other trend portfolio managers in the 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 also work with Robeco’s sector, emerging markets and sustainability analysts.