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Emerging enhanced indexing equity
Emerging markets equities

Emerging enhanced indexing equity

An alternative to passive investing in emerging markets

Key points:

  • Alternative to passive investing for investors looking for higher returns than the broader market and a low tracking error
  • Systematic research driven investment approach to benefit from persistent behavioral biases
  • Proven track record since 2007 with an information ratio of >1 in emerging markets

Philosophy

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 we integrate environmental, social and governance (ESG) factors.

Proven alternative to passive investing

Enhanced Indexing offers all the benefits of passive investing, while compensating for its many disadvantages.

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Process

The performance driver is our stock-selection model, selecting stocks with a balance of attractive valuation and positive momentum. We enhance these factors to avoid non-rewarded risks and aim to improve performance. The weights resemble the index but with slightly higher weights to attractive stocks and lower weights to unattractive ones. Our proprietary rules-based portfolio construction algorithm limits turnover.

We have launched our emerging enhanced indexing equity strategy in 2007.

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Team

Our strategies are 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.

Get in touch with us

Contact us if you would like to know more about this strategy.

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Disclaimer

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.

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