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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
  • Track records in developed and emerging markets

Philosophy

Robeco’s quantitative investment strategies are based on the following beliefs: 

Evidence-based research. We strive to identify 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 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

This information is subject to change.
Quantitative investing

We’ve been leading the way in quantitative investing for over 25 years.

Quantitative investing

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

This page is intended for US prospects, clients and investors only and includes information about the capabilities, staffing and history of RIAM US and its participating affiliates, which may include information on strategies not yet available in the US. SEC regulations are applicable only to clients, prospects and investors of RIAM US. Robeco BV, Robeco HK and Robeco SH are considered a “participating affiliate” of RIAM US and some of their employees are “associated persons” of RIAM US as per relevant SEC no-action guidance. Employees identified as associated persons of RIAM US perform activities directly or indirectly related to the investment advisory services provided by RIAM US. In those situations, these individuals are deemed to be acting on behalf of IUAM, a US SEC registered investment adviser.

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