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Enhanced Indexing Equity

Enhanced Indexing Equity

An alternative to passive investing in equity markets

Key points:

  • An alternative to passive investing for investors looking for stable outperformance after costs, with a low tracking error
  • Disciplined and transparent investment approach that integrates sustainability
  • Proven track records in developed and 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.

Process

Robeco's Enhanced Indexing strategies offer the advantages of passive investing but can generate better returns by incorporating 50 years of research. We slightly overweight those index constituents that score highly on characteristics proven to deliver superior returns, and slightly underweight those that score poorly. These characteristics are value, quality, momentum and analyst revisions.

Regions

The strategy is available for different investment regions: globally developed, European, US and emerging markets.

Region

Global developed markets

Emerging markets

Benchmark

MSCI World Index

MSCI Emerging Markets Index

Information ratio target

1

1

Tracking error (expected average)

1.0%

1.2%

Number of stocks strategy

≈ 750

≈ 500

Inception date

August 2004

May 2007





Region

Europe

US

Benchmark

MSCI Europe

S&P 500

Information ratio target

1

0.7

Tracking error (expected average)

1.0%

1.5%

Number of stocks strategy

≈ 350

≈ 400

Inception date

September 2017

September 2017

Proven alternative to passive investing

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

Read more

Team

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.

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. (DIFC Branch) is regulated by the Dubai Financial Services Authority (“DFSA”) and only deals with Professional Clients and Market Counterparties, 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.

Please confirm that you are a professional investor and/or institutional investor and that you have read, understood and accept the terms of use for this website.

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