Robeco Institutional Asset Management B.V. (Dubai office) is regulated by the Dubai Financial Services Authority (“DFSA”) and only deals with Professional Clients and does not deal with Retail Clients as defined by the DFSA.
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.
A decentralized professional investment process can lead to inefficient portfolios. Low-risk equities are undervalued because active managers have a dual incentive to buy high-risk stocks.
First, in order to increase the chance of expected outperformance; and second, to maximize investments under management. Empirical research shows that low-risk stocks have a superior Sharpe ratio. The low-risk effect is not attractive to long-short managers or information-ratio-driven asset managers. The best way to benefit from this effect is by implementing a strategic allocation to low-risk stocks. In this respect it is important to apply a long-term evaluation horizon.