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New Robeco fund attracts highly recommended rating

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MEDIA RELEASE: Robeco’s Global Developed Sustainable Enhanced Index Equity Fund (AUD) has been awarded a highly recommended rating in its first research cycle by independent research house, Lonsec.

The Fund was launched in the Australian market in December 2021, and aims for a higher score on Environmental, Social and Governance (ESG) criteria than its benchmark, MSCI World Index.

The fund also aims to reduce the environmental footprint for greenhouse gas emissions, water use, and waste generation compared to the benchmark, while maintaining the ability to provide alpha in developed markets.

In rating the Fund, the Lonsec report concluded Robeco has a “highly experienced and generally stable investment team applying a logical, well-developed and consistently applied investment approach.”

Further, the report also noted “Robeco has a strong pedigree in sustainable investing and the SDG/impact framework is seen as robust and well-developed with specialist resourcing.”

According to Robeco Australia and New Zealand managing director, Stephen Dennis, a highly recommended rating when the Fund is first brought to the market is testament to the investment skills and capabilities of the team.

“The Fund is attracting particularly strong levels of interest from institutional investors in the domestic market and given the heightened focus on ESG and sustainable investing, we expect this to continue for some time yet.

“Following the COP26 Summit in Glasgow last year, investors are now demanding more from their investments, and are rightfully voting with their feet in reducing their own carbon footprint. There’s real momentum in sustainable investing, and this Fund is designed with the conscious investor in mind,” he said.

Robeco’s enhanced indexing strategies use an extensive values-based exclusion list and includes voting and engagement, which is undertaken by Robeco’s Active Ownership team.

The fund uses a quantitative stock selection strategy which ranks stocks according to their expected future relative performance using the factors value, quality, momentum and earnings revisions, as well as sustainability criteria, resulting in a well-diversified portfolio with a low tracking error relative to the index.

As of 31 March 2022, Robeco manages over AUD 48 billion of assets globally in its Enhanced Indexing strategies, of which AUD 11 billion are managed on behalf of investors in Australia and New Zealand.

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