Client Solutions case
Targeting a younger audience with multi-thematic offering
An Asian client wanted to create a multi-thematic fund that focused on sustainability trends without compromising on returns. Their objective included maintaining a beta of 1 and maximize its Sharpe ratio – the performance of an investment compared to a risk-free asset such as cash.
How to attract younger investors to our ILP platform without compromising performance?
Objectives
Return: maximize on Sharpe ratio – with sustainable themes while not underperforming market
Beta: targeting a beta of 1 against the benchmark
Fund limit: maximum exposure 19% to be UCITS compliant
Solution
The solution was to combine six of Robeco's specialist sustainable strategies that achieved all these objectives. The multi-thematic offering included all three strategies in the renewable energy-related 'Smart' range – Smart Energy, Smart Mobility and Smart Materials – along with the Circular Economy, Sustainable Water and Sustainable Healthy Living strategies.
Outcomes
The portfolio has outperformed the benchmark in terms of annualized returns and it also has a favorable risk-adjusted returns with a higher Sharpe ratio against benchmark.