Emerging market equity investors have a wide range of strategies to choose from. This can vary from low-risk strategies aiming to benefit from the low volatility anomaly, emerging markets smaller companies strategies that capitalize on strong domestic growth, to enhanced indexing as an alternative to passive emerging equity allocations.
In deciding which strategy to pick, investors may consider selecting not one strategy, but combining two or more of them. This allows them to benefit from diversification, which can reduce risk and offer more stable alpha. What does this mean concretely for the portfolio’s risk and return characteristics? To give an indication, this whitepaper takes two global emerging markets strategies with the same objective, i.e. to achieve alpha at a set risk budget. The main difference is that one is fundamentally managed and the other quantitatively. How could combining them benefit investors and what would it cost them?
This white paper is not available for users from countries where the offering of foreign financial services is not permitted, such as US citizens and residents.
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.