John Pinto
Executive Director
j.pinto@robeco.com
+1 646 690 9385
www.robeco.com/us/insurers
230 Park Avenue, Ste 3330, New York, NY 10169 USA
About Robeco
Robeco is a pure-play international asset manager founded in 1929 with headquarters in Rotterdam, the Netherlands, and 16 offices worldwide. A global leader in sustainable investing since 1995, its unique integration of sustainable as well as fundamental and quantitative research enables the company to offer institutional and private investors an extensive selection of active investment strategies, for a broad range of asset classes.
As of September 2023, Robeco had USD 186 billion in assets under management, of which USD 183 billion is committed to ESG integration.
‘Factor investing across asset classes is the next El Dorado’
While factor investing is a mature concept in the realm of equity investing, it is still a nascent investment style in other asset classes. We discuss this and other topics with our guest Amit Goyal, Professor of Finance at the University of Lausanne and Senior Chair of the Swiss Finance Institute.
Signals are green for quant investing
As we reflect on decades’ worth of experience in quant investing, our impression is that the future looks bright. One of the many things we have been reminded of along the way is that a formula which will win in the long run can sometimes feel like riding a rollercoaster in the short run.
The time is right to get back into emerging markets
Guide to Conservative Investing
The Robeco Conservative Equities strategy is designed to capture the low-risk premium, which is one of the oldest anomalies in equity research. The concept and design of the strategy is based on research that documents how taking on more risk is not necessarily rewarded in the long run. This includes several studies on the low volatility effect.
Central bank watcher: Shifting gears
The past year has been a remarkable one for monetary policy. More interesting policy moves are likely in 2023.
A bevy of black swans: Surprises that could derail the 2023 outlook
Investors are looking forward to a new year that has one redeeming quality – it doesn’t mirror the annus horribilis of 2022. Robeco’s outlook for ‘short-term pain, long-term gain’ warns that 2023 is likely to see recession, and that investors need to wait for inflation, interest rates and US dollar strength all to peak before the good times resume.
Modern slavery and Just Transition top 2023 engagement themes
Tackling modern slavery and working for a Just Transition towards net zero lead the Active Ownership team’s engagement themes for 2023.
Finland tops country sustainability ranking for the first time
After decades in the shadows of its Nordic neighbors, Finland finally emerges as the new northern light for sustainability performance.
SI Dilemma: To ESG or not to ESG? The burden of proof is increasing
As a responsible and sustainable investor for many years, I am used to being asked many critical questions. On the performance of sustainable investing; on our impact (or lack of it) as allocators of capital; and whether or not we are capable as active owners of achieving any results.
Credit outlook: From rates to ratings fears
As our Global Macro team explained in their September 2022 outlook, ‘Twin Peaks’, in a hiking cycle that ultimately ends in recession, rates typically peak before credit spreads do. In particular, rates usually peak around the second-tolast Fed hike. We believe we are now in the valley between the two peaks. Rates have started to come down and may have peaked in some markets, while inflation is now easing. Credit spreads have also rallied a lot since midOctober but are set to rewiden when markets start anticipating a recession that would hit corporate health.
Rising investor opportunities on the path to net zero
COP27 should accelerate investments in asset classes that can help the climate transition, says investor Aliki Rouffiac.
2023 Outlook: Short-term pain, long-term gain
We believe 2023 will offer a considerable brightening of the return outlook for major asset classes. But we first need to brace for more pain in the short term.
Engaging to improve diversity and resource management
Addressing the impacts that companies have on society and natural resources leads the Active Ownership team’s third-quarter report.
SI Dilemma: Do we need perfect ESG data?
The most persistent topic of discussion in sustainable investing is ‘when will the data be good enough?’. That can mean sourcing data that is more comprehensive, reliable, consistently measured, clearly defined, comparable, audited, regulated, financially material or impact relevant. The wish list is long, and it depends on who you ask, and what they want to do with the data.
The energy transition comes with a price tag
Decarbonization to achieve net-zero emissions by 2050 will have an inflationary impact. Its effects can be assessed using three scenarios, says portfolio manager Bob Stoutjesdijk and strategists Rikkert Scholten and Martin van Vliet.
How climate change impacts different asset classes
We believe the climate impact on asset returns is not yet priced-in, and that it will become more significant over time.
Decoding China’s equity market
Despite the size and significance of China’s economy and its busy secondary markets, many foreign investors remain skeptical. Jie Lu, Head of Investments China, discusses why an active strategy, based on well-resourced local research, can outperform.
Are credit factor premiums robust to rising inflation and interest rates?
Multi-factor credit strategies provide all-weather outperformance. This applies across inflation regimes, as well as in various interest rate environments.
From carrier pigeons to AI – gaining an edge with alternative data
Investors increasingly prefer alternative data over more traditional sources. But it has its drawbacks, say quant researchers Kristina Ūsaitė, Laurens Swinkels, and Mike Chen.
Robeco's Climate Investing Education Tool
Continuous education is an important part of any professional investor’s career, particularly as times change so rapidly. Climate change has become the biggest issue facing investors, but what it means for portfolios and the transition to a lower-carbon world is less clear. What challenges (and opportunities) will it bring? And why should we act now? Not knowing the answers to these important questions has put some financial professionals at a disadvantage in being able to explain it to others like clients and colleagues. This module bridges that gap. Those participating in this course are invited to digest the information and then take the test at the end. To enhance the learning experience, the module is delivered using clear language, charts, a video and case studies. Each of the eight chapters takes up to 15 minutes to read. A score of at least 12 out of 15 correct answers (80%) for the test will count as two hours towards your professional CPD requirements. The educational module is already accredited by local and global institutes, with more to follow. The CFA Institute allows its members the ability to self-determine and self-report professional learning credits earned from external sources. CFA Institute members are encouraged to self-document such credits in their online PL tracker.
Keep a close eye on chips and ships
Investors looking for companies that can survive a recession should consider the ‘chips and ships’ scenario for navigating choppy waters.
(No) food for thought over soaring prices
Rising food insecurity is unsettling markets and fueling inflation. The global response to it will define emerging financial markets over the next five years, say SI researcher Michal Kulak and strategist Peter van der Welle.
SI Dilemmas: To share or not to share – that is the question
In August, Robeco announced that we are sharing our sustainable investing intellectual property, starting with our SDG framework. We will make available to clients and academics the scores that we attribute to companies indicating how they impact the Sustainable Development Goals, free of charge.
The emerging trade-off in global trade
The multiplicity of recent shocks is shifting supply chain management away from efficiency towards resilience and sustainability. This is reinvigorating slowbalization, says strategist Peter van der Welle.
Credit outlook: Trade and trust
Valuations have cheapened but this has not been broad-based enough. More proof is needed that markets are pricing a full-blown recession.
Identifying value stocks with machine learning
5-year Expected Returns: The Age of Confusion 2023-2027
Bach’s fugue resonates loudly in today’s financial markets. Given the multiplicity and persistence of recent shocks, a feeling of disorientation resounds in skyrocketing bond market volatility on the back of the highest US inflation and the lowest Chinese GDP growth in 40 years. Like the four distinct voices of Bach’s fugue, the orchestra of financial markets has been playing four different regimes in rapidly alternating fashion this year. Year to date, we have observed rising nominal Treasury yields and falling credit spreads (risk-on regime), declining Treasury yields and rising credit spreads (risk-off regime), rising Treasury yields and credit spreads (QT regime) and declining Treasury yields and credit spreads (QE regime). Last year’s 5-year outlook, entitled The Roasting Twenties, was subtitled “Things are heating up”. Unfortunately, one year later we have to conclude that things have been heating up pressure-cooker style, not only because of global warming. A hot war in Europe triggering an energy crisis, a food crisis, and inflation in developed economies hovering around double digits were clearly not penciled in. While Covid appears to be on its way to becoming endemic, it is still hounding the largest contributor to global growth, China. A country that is also simultaneously battling a real estate crisis as well as drought.
Finland once again the world’s sustainability champion
Finland and its Nordic neighbors maintain top sustainability status; Russia plunges.
Fixed income outlook: Twin peaks
In the past 50 years, every single recessionary peak in credit spreads has been preceded by a peak in government bond yields. We do not think this time will be different.
Central bank watcher: Work in progress
Financial markets are already giving a verdict on tighter monetary policy in US and European markets. Flat or inverted yield curves are a hint that policy is turning restrictive.
Schrödinger’s economy – when should we open the box?
Knowing the true state of the US economy will be key to assessing risks for the coming months, says multi-asset investor Colin Graham.
Learn from the birds and the bees – the urgency of biodiversity
Protecting biodiversity has become as urgent as the need to tackle climate change, and investors can play a role. But it means changing entire industrial processes and human habits, which makes it even more complex than the energy transition, says Robeco’s climate and biodiversity strategist, Lucian Peppelenbos.
Time for the Asia-Pacific green bond market to step up to the challenge
Green bond issuance in the region has grown enormously. But the absence of harmonized ESG standards and taxonomies could become an obstacle to further growth.
Investing across deflation, inflation and stagflation
Real returns on equities and multi-asset portfolios are typically poor when inflation is high, especially in times of stagflation. Factor returns, on the other hand, are relatively insensitive to inflation cycles; hence they diversify asset class returns across various inflation buckets.
‘Alternative data allows you to take a deeper look’
Novel data sources and techniques can help you tap into alternative alpha. We discuss this and other topics with Mike Chen who recently joined Robeco as head of alternative alpha research. Previously, he was the head of sustainable investments at PanAgora Asset Management.
The SDGs at half-time – we need to score (with) more goals
It has been seven and a half years since the UN’s Sustainable Development Goals were launched to great fanfare in 2015. A deadline of the end of 2030 was set for achieving all 17 goals. As the SDGs reach half-time, Robeco’s SDG Strategist Jan Anton van Zanten takes stock of how far we have come, and what we still need to do.
‘Quantification of sustainability can be pushed even further’
There is a large amount of untapped alternative data that can be used for sustainable investments. We discuss this and other topics with our guest Markus Leippold, Professor of Financial Engineering at the University of Zurich and Swiss Finance Institute.
Marrying sustainability and emerging markets expertise in quantitative strategies
The most sustainable emerging market companies are on par with those in developed markets. Our emerging market quant equity approach is designed to benefit from these businesses.
Net-zero focus in Q2 Active Ownership report
Engaging to cut corporate emissions leads the Active Ownership team’s report of its activities over the second quarter.
Should shorting count for net-zero portfolios?
Short positions can be a meaningful add-on, but should not be an excuse for inaction on the long side of a portfolio. We believe the bar should be set much higher for long-short portfolios, to properly reflect the dual aim of divesting from long positions in heavy emitters and creating additional impact with short positions.
Quant chart: Winning by losing less
Low-risk investing tends to deliver higher risk-adjusted long-term returns than the market as it tallies wins by losing less in down periods. Amid the volatile environment witnessed in the first half of 2022, this has been the case again as low-risk strategies have provided investors with valuable downside protection.
PodcastXL: The pursuit of alternative alpha
It has been hailed as the next frontier in quant investing. Using artificial intelligence, algorithms and vast volumes of new data types to explore untapped sources of returns sounds intriguing. Especially when times are uncertain, and alpha is elusive. But is this hype, false hope or real opportunity? We discuss these questions with three of our experts. Tune in.
Weighing the pros and cons of nuclear power as climate urgency grows
Robeco has revised its stance on nuclear power as part of efforts to transition to a net zero economy.
Indices insights: Combing through the climate data forest
We unpack the merits of different carbon metrics used to gauge climate risk in portfolios, including a new climate beta measure. These are discussed with climate strategist, Lucian Peppelenbos, climate data scientist, Thijs Markwat, and Head of Sustainable Index Solutions, Joop Huij, in our roundtable interview.
Credit outlook: The mess after the largesse
SI Dilemmas: We need to start thinking differently about SI and returns
Inflation may be more about the destination than the peak
We’re facing a highly unusual inflationary situation. Inflation uncertainty, and especially uncertainty about where inflation will settle, is likely to remain elevated in the coming quarters.