Robeco's December Newsletter
The world is past its peak misery from global tightening, but it's still tricky out there for investors as we await Trump 2.0. SI, meanwhile, is set to focus on the net zero transition, our one-year outlook says. For this month's regular features we unveil what it takes to excel in credits investing, offer 10 charts showing fintech's amazing opportunities, and explain why there's more than meets the eye to next-gen quant
2025 Outlook: This is not a landing
What kind of landing will the global economy face in 2025? We’re well past peak misery from the global tightening cycle, but we’re still no nearer knowing when ‘normality’ will return, our one-year outlook says.
The US faces uncertainty under Trump 2.0, and Europe needs the kind of radical changes already seen in US exceptionalism. Our base case for asset class returns sees equities rising in single digits amid a backdrop of elevated real bond yields and an overvalued US dollar whose safe-haven status is being gradually eroded.
How to excel in credits investing
Monetizing the value factor with a contrarian approach uncovers hidden gems in corporate bond markets.
- Monetizing the value factor through a contrarian investment approach
- Top-down macro and credit research underpins our beta policy
- In-depth company research supports our bottom-up risk-taking
Fintech’s powerful momentum: 10 key charts
Investing in fintech offers a diverse group of ecosystems that go far beyond the payments companies and neobanks.
- Strong recovery in fintech continues as sector outperforms in 2024
- Rapid global consumer penetration in payments, data and financial services
- Capital markets fuse is lit as earnings start to flow
Next-gen quant: More than meets the eye
Our Quant Equity strategies use exposure to enhanced factor and proprietary signals that generic factor scans often miss.
- Our Quant Equity strategies balance enhanced factor and proprietary signal exposure
- Generic factor scans may fail to capture true nature of portfolios
- Our 20-year track record is largely unexplainable through generic factors
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Strengthen your core with global quality
How Sustainable Global Stars focuses on quality to avoid the pitfalls of style investing and perform across the cycle.
- Core equity allocations need to perform across the cycle
- Focusing on quality and being style neutral delivers a balanced portfolio
- Real diversification without sector and geographic bias
We believe in an all-weather approach to your core equity portfolio
Should investors address social issues?
The S in ESG is always worth pursuing, so long as investors make a clear business case for it, our SI Dilemma argues.
- Human rights can be financially material issue for investors and business
- Good human capital management feeds through into higher returns
- EU is helping to lay down frameworks but more clarity is needed
Social issues have been an issue for asset managers ever since the S became the middle letter of ESG
The smarter alternative to passive: Enhanced Indexing
Over the years, passive investing has gained popularity for its predictable returns and broad market exposure. These qualities have made passive strategies a staple in core allocations, offering investors low costs, broad market exposure, liquidity, diversification, and transparency.
During this webinar you will learn:
- The key reasons why investors consider enhanced indexing: the smarter alternative to passive investing
- How the concept of enhanced indexing addresses the challenges of passive investing
- How Robeco has successfully implemented this approach over the past decades