Responsible Investing ClassificationAn initiative in the Dutch Retail Asset Management
Market
London | November
Robeco – Patrick de Jong | TBLI Conference TM Europe 2010
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1. Robeco and Responsible Investing
2. Innovation in the Financial Services Industry
3. Objective Responsible Investing Classification
4. Methodology
5. Three levels per building block
6. Sustainalytics reports
7. Our lessons learned
8. Cooperation
Contents
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Robeco and Responsible Investing
Robeco advocates Responsible Investing and has an integral RI policy in place, covering:
Strategy
Robeco is a pioneer in the field of RI since 1999.We believe Responsible Investing will create shareholders value and therefore value for our customers in the long run.
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Innovation in the Financial Services Industry
Value is:
C(S,t) = S N(d1) – K exp (-r τ) N(d2)
where
N(x) = (1+ erf(x/√2))/2
Τ = T -1
d1= log(S/K) + (r + σ2/2) τ
σ √ τ
d2= log(S/K) + (r - σ2/2) τ
σ √ τ
Simplicity and Transparency
If you claim being a responsible investor, you have to be transparent
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Objective Responsible Investing Classification
Provide private investors transparency on the policy-
based integration of Environmental, Social and
Governance (ESG) factors into fund management.
Enable private investors to compare different
investment funds of Robeco and investment funds of
other asset managers.
Classification is not a rating, it’s about providing
transparency & accountability.
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Methodology (www.robeco.com)
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Three levels per building block
1.Basic (ESG-integration):
key ESG issues are systematically integrated in company appraisals
for a majority of portfolio holdings
2.Intermediate (ESG-integration):
the fund also provides details on internal processes to ensure
effective ESG integration
3.Advanced (ESG-integration):
the process for identifying key ESG issues is also transparent with
reference to related information sourcing
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Sustainalytics reports (www.robeco.com)
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Our lessons learned
Responsible investing is increasingly attracting the
attention of private investors
Nonetheless serious challenges remain:
Lack of common understanding of terminology
Thematic and values-based investing is best understood; other
concepts are less understood
Private investors are suspicious about the value behind the
proposition
and they are therefore very alert about the wording, for example:
apart from the financial aspect a certain degree of ESG-issues is
taken into account
But when explained clearly Responsible Investing is highly
appreciatedA mix of awareness raising effort and simplicity creates opportunity!
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Good cooperation by the Dutch Investment Community
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Curious or do you have questions?
www.robeco.com
(look for the Product selector)
Or
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Important Information
This presentation has been carefully prepared by Robeco Asset Management, a trade name of Robeco Institutional
Asset Management B.V. (hereafter Robeco). It is intended to provide the audience with information on Robeco’s
specific capabilities, but does not constitute a recommendation to buy or sell securities or investment products.
The information contained in this document is solely intended for professional investors within the meaning of the
Dutch Act on the Financial Supervision (Wet financieel toezicht) or persons who are authorized to receive such
information under any other applicable laws.
The contents of this presentation are based upon sources of information believed to be reliable, but no warranty or
declaration, either explicit or implicit, is given as to their accuracy or completeness. This presentation is not
intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or
use would be contrary to local law or regulation.
Historical returns are provided for illustrative purposes only and do not necessarily reflect Robeco’s expectations
for the future. The value of your investments may fluctuate. Results obtained in the past are no guarantee for the
future.
No rights whatsoever are licensed or assigned or shall otherwise pass to persons accessing this information.
Robeco Institutional Asset Management B.V. is registered with the Netherlands Authority for the Financial Markets
in Amsterdam.