Asset manager Robeco on Wednesday won the award for best asset manager in Morningstar’s Luxembourg Awards for Investing Excellence in 2023. The firm also won the new award as best asset manager in sustainable investing.
Dutch-based Robeco, with assets under management of approximately 200 billion euro, since 2016 is fully owned by Japanese financial services conglomerate Orix. With its awards Robeco beat competition Vanguard, J O Hambro, BNP Paribas and Candriam.
“We are honoured to be awarded ‘Best Asset Manager’ and ‘Best Asset Manager – Sustainable Investing’ by Morningstar, as it underlines our strength as a pure-play asset manager and a leader in sustainable investing,” said Victor Verberk, CIO Fixed Income & Sustainability at Robeco.
‘Real-world impact’
“At Robeco, we aim to add value for our clients while also aiming to create a real-world impact. We have been committed to ESG integration for decades, as it helps us to identify opportunities and manage downside risk. In our sustainable investing approach, we specifically focus on climate change, biodiversity and human rights.”
Morningstar said its award for best asset manager is presented to the manager who stands out based on excellent performance of its fund line-up and who also, in the opinion of Morningstar’s fund analysts, has an outstanding investment culture that puts the interests of investors first.
Morningstar this year introduced a new award: for best asset manager sustainable investing. This award is given to the asset manager who scores well based on the Morningstar Sustainability Rating, and who is also strongly committed to integrating environmental, social and governance factors into its fund offering. These asset managers typically have a clearly defined ESG philosophy, a strong degree of ESG integration into investment processes and adequate resources to conduct sustainability research. In addition, these asset managers also have solid corporate engagement and proxy-voting programs.
Best Asset Manager Award: Robeco
Parent Pillar Score: Above Average
Report by the Morningstar jury:
Robeco demonstrates a strong investment culture and acts as a good steward of investors' capital, earning it a Parent rating of Above Average.
In 2013, Japanese financial conglomerate Orix acquired a 90% stake in Robeco and has fully owned the firm since 2016. It restructured the group, which consists of several autonomous asset managers. This reorganisation led to turnover within the higher echelons of the firm, which continued when RobecoSAM was integrated into Robeco in 2020.
Fortunately, the instability at the top didn't impact Robeco's investment teams. Robeco has generally been able to attract and retain talented investors, although we have seen a few prominent portfolio managers leave in recent years.
The firm continues to capitalise on its proven expertise, which includes quantitative equities, thematic strategies, and credits, while rationalising others that fall outside of its wheelhouse. Sustainability has been integrated across all asset classes and strategies to varying degrees, with its impact range still using the RobecoSAM label.
The firm offers strategies that on average score well on both quantitative and qualitative Morningstar ratings. Robeco's remuneration policy is aligned with investors' interests by emphasising long-term risk-adjusted returns, and the firm has a prudent capacity-management process in place.
Asset Manager Sustainable-Investing Award: Robeco
Morningstar ESG Commitment Level: Leader
Report by the Morningstar jury:
Robeco has a long heritage in sustainable investing and continues to integrate and nurture ESG best practices, earning it a Morningstar ESG Commitment Level of Leader.
Robeco has been a pioneer in sustainable investing for decades, with a history that goes back to 1995. Since becoming an early signatory of the United Nations-backed Principles for Responsible Investment in 2006, Robeco has remained publicly committed to sustainable investing. Robeco joined Climate Action 100+ in 2017, and the firm participates in numerous working groups and collaborative engagement initiatives. The firm has set clear and challenging milestones on climate action and set clear targets to reduce its own operational carbon emissions.
Robeco has shaped its product range according to high ESG standards supported by its vast research capability. The firm applies exclusions and integrates ESG for 96% of its assets under management, with the degree of exclusions and sustainability targets varying depending on whether a strategy is classified as "sustainability inside", "sustainability focused", or "impact". Portfolio managers and analysts have access to a comprehensive sustainability dashboard.
Robeco has built an impressive team that is dedicated to the company’s sustainability initiatives. More than 50 dedicated resources are involved in sustainability research, thought leadership, active ownership, and client support. Although there has been elevated turnover within the firm’s sustainability research team, Robeco has adequately backfilled departures, while adding capability by hiring experts on biodiversity and climate and other key themes.
Robeco’s deep resources enable intensive engagements with many companies simultaneously on a variety of themes. Its public disclosure of voting and engagement activities has improved. Since 2022, Robeco discloses rationales for its voting decisions and provides more case studies naming the companies it engages with. Robeco also now discloses the full list of companies under engagement, categorised by theme.
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- Capital Group and Impax take top 2022 Morningstar Awards
