Featured Company: Robeco
Robeco is an international asset manager offering a wide range of actively managed products and solutions in equity, fixed income and multi-asset funds. It has offices in 15 countries across Europe, the US, Middle East and Asia. The company serves a broad range of clients around the world, including pension funds, financial institutions, insurance companies, and retail and private banks. At December 2016, Robeco Group’s total AUM amounted to EUR 281 billion.
One of Robeco’s core strengths is its quantitative models, using a scientific and disciplined approach to investing. As a pioneer of quant investing in the 1990s, Robeco is widely recognized as a world leader in the field, and this is reflected in the quality of its content. Below is a selection of the most popular Robeco white papers published on Savvy Investor.
Expected Returns 2017-2021: It’s Always Darkest Just Before Dawn (Robeco, Oct 2016)
Robeco’s five-year outlook was named "Best Investment Paper 2016" in the Savvy Investor Awards. It examines a variety of key issues for global markets and sets out forecasts for returns from the major asset classes.
Three ways to successfully implement factors and smart beta (Robeco, March 2017)
This paper from Robeco aims to provide a clearer picture of what factor-based investing actually is, and suggests three ways in which investors can implement quantitative strategies.
Factor investing case studies – the merits of tailor made solutions (Robeco, 2016)
Factor investing is rapidly growing in popularity, but it remains important to select the right factors. This paper addresses some of the challenges.
Concerns regarding the new Fama-French 5-factor model (Robeco)
Nobel prize laureate Eugene Fama and fellow researcher Kenneth French have revamped their famous 3-factor model by adding two new ones: profitability and investment. But this 5-factor model raises many questions.
Hedge fund bets show Low Volatility is still far from overcrowded (Robeco, Jan 2017)
Thorough analysis of hedge fund data shows that, despite their flexible approach to investing, these funds tend to bet strongly against the low-volatility anomaly.
How Quality Sharpens the Factor Premiums Approach (Robeco, 2016)
Investors are increasingly allocating to factor premiums such as Value, Momentum and Low-Volatility. Robeco is now adding a fourth factor, Quality, to the investment process of its factor funds.
How Smart is 'Smart Beta' Investing? (Robeco, 2016)
The authors examine the pros and cons of smart beta investing in general. They also discuss the most popular types of smart indices that have been introduced in recent years.
The Profitability of Low Volatility (2016)
The authors argue that exposure to market beta in the cross-section is not rewarded with a positive premium, regardless of whether it is controlled for the new factors in the five-factor model.
Implementing Factor Strategies in Corporate Bonds (Robeco, 2016)
Although factor investing strategies work well in corporate bonds, building a portfolio requires greater care due to liquidity issues. The authors explore how this can best be achieved.
Smart credit investing: harvesting factor premiums (Robeco)
The concept and benefits of factor investing apply equally to the corporate bond market. This paper discusses the benefits of a multi-factor portfolio that looks beyond the equity factors.