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What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:
who holds an Australian Financial Services License
who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
that is a body regulated by APRA other than a trustee of:
(i) a superannuation fund;
(ii) an approved deposit fund;
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme.
within the meaning of the Superannuation Industry (Supervision) Act 1993that is a body registered under the Financial Corporations Act 1974.
that is a trustee of:
(i) a superannuation fund; or
(ii) an approved deposit fund; or
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme
within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.that is a listed entity or a related body corporate of a listed entity
that is an exempt public authority
that is a body corporate, or an unincorporated body, that:
(i) carries on a business of investment in financial products, interests in land or other investments; and
(ii) for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, within the meaning of section 82 of the Corporations Act 2001, the terms of which provided for the funds subscribed to be invested for those purposes.that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.
Quant Investing
Low volatility investing
Conservative equities is our active approach to low volatility investing. It is based on the anomaly that low-risk stocks tend to deliver a higher risk-adjusted return than high-risk stocks, contrary to classical finance theories. An approach that leads to a portfolio that offers stable equity returns and tend to generate high dividends.
start of proven track record
risk-adjusted outperformance (December 2024*)
EUR assets (december 2024)
*Past performance is no guarantee of future results. The value of the investments may fluctuate. The risk-adjusted outperformance is defined as Jensen’s alpha against the MSCI World Index (net return), based on monthly investment returns in EUR, gross of fees, for Robeco QI Institutional Global Developed Conservative Equities as a representative of the strategy. In reality, management fees and transaction and other costs are charged. These have a negative effect on the returns shown. The value of your investments may fluctuate. Results obtained in the past are no guarantee for the future.
Stable equity returns tend to come with high income
We think it is unwise to select stocks purely based on risk considerations, ignoring the price you pay for them. This is why we also consider valuation and momentum factors to enhance returns. This approach leads to a portfolio that offers stable equity returns and tends to generate high dividends.
Dividends are a significant and stable source of equity returns
Dividend yield is one of the most defensive measures of value
High dividends help enhance long-term returns and limit drawdowns
Defensive Equities
Winning by losing less
Winning by losing less in down markets
Better capital preservation can be achieved due to a significant reduction of losses during down markets. In a very bullish environment, the strategy could lag the overall market, while still delivering solid absolute returns. Once the market recovers, low volatility stocks have to make up less lost ground.
Source: Robeco Performance Measurement and MSCI as of 31 December 2024.
Past performance is no guarantee of future results. The value of the investments may fluctuate. Left-hand graph: The average 12m rolling return series. Right-hand graph: Annualized returns. All figures in EUR based on the net asset value of the representative account of the Robeco QI Institutional Global Developed Conservative Equities strategy since inception (October 2006), gross of fees. The account and reference index are unhedged for currency risk as of June 30, 2012. In reality, costs (such as management fees, transaction- and other costs) are charged. These have a negative effect on the returns shown.
How to apply the Conservative strategy in a portfolio
Risk reduction
A pension fund with a low funding level after the financial crisis replaced conventional equities with Conservative equities to reduce risk while not giving up equity returns.
Income generator
A bank decided to include Conservative equities in its defensive income model portfolio, as the strategy combines high dividend yield with lower downside risk.
Diversification
A family office added the Conservative equity strategy to its portfolio of higher risk equity funds, in order to stabilize the overall performance.
Sustainability integration
An environmentally aware pension fund wanted to limit the ecological footprint, increase the ESG profile and reduce risk and therefore invested in the connservative sustainable equity strategy.
Proven track record
For over ten years, we have been offering a distinctive approach to low-volatility investing, based on award-winning research.
First multi-factor models developed in 1994
First Conservative equity strategy launched in 2006
A wide range of strategies: global developed, European, emerging, all countries, US and sustainable
