Client-driven customization for optimal results
Robeco offers insurers and pension funds highly customized client-driven solutions. These portfolios are optimized based on client-specific objectives regarding four main considerations:
We have a long track record in managing customized portfolios based on client specific investment and regulatory considerations. Our offering includes solutions in the LDI, cash flow-matching, buy & maintain credit and multi-asset spaces, among others.
Phase 1: Understand the client
To design customized solutions, we first make sure we understand our clients and their specific objectives. The optimal portfolio depends on their specific needs in terms of objectives, requirements and regulation. Our portfolio managers spend significant time on the design phase, focusing on the actual purpose of the investment, such as cash flow matching, protecting the solvency ratio or accumulating wealth.
Client setting: identifying optimization targets, liability considerations and specific requirements
Phase 2: Design the optimal portfolio
Our dedicated Insurance & Pension Solutions team has all the experience, tools and Robeco wide resources needed to design and manage optimal and highly customized client solutions.
This team is fully dedicated to translating clients’ investment objectives into customized investment solutions. Regulatory efficiency and strategic risk and return analysis are key features of our offering. Whenever necessary, we can adjust our models to our clients’ specific matching adjustment needs, internal models and the Solvency 2 capital requirements. In addition, we can make specific ESG goals, pursued by a client, part of the optimization objective. This is done by integrating ESG and SDG assessments. Robeco is a sustainability leader with an A+ score in PRI assessment, which gives us the knowledge and knowhow to optimally integrate sustainability factors in your portfolio.
The portfolio managers have the necessary resources to optimally and flexibly design and manage portfolios
Phase 3: Management
After the design phase, the portfolio is managed with a strong focus on risk management. We make sure that every investment decision is consistent with the client’s objectives and beliefs. We consider close communication with the client as a key factor of success.
Clear periodic reporting and direct access to portfolio managers on portfolio positions, markets, regulation and research are an integral part of the service we provide. Our specialists proactively share insights and respond thoroughly and swiftly to specific requests from insurance and pension clients.
Case: Cash flow matching process
Our cash flow matching investment process optimizes allocation across fixed income asset classes. Eligible asset classes and instruments are defined by the client. Certain allocations are predefined, which leads to a ‘residual’ cash flow optimization target. The risk budget is then optimally allocated to the various risk ‘segments’ across asset classes, ratings and tenors.
Strategic allocation: example cash flow matching across asset classes
