This article was produced in partnership with Robeco.
As 2025 approaches, Australian institutional investors are facing a variety of challenges: low expected returns for developed equity markets given high valuation levels; the need to provide transparency on investments to stakeholders; and an ever-growing need to align portfolios with sustainability goals. Quantitative (quant) investing offers an effective, disciplined and cost-effective approach that meets these demands.
30 Years of Quant Expertise and Stable Growth
With 30 years of quant investing experience and two decades in enhanced indexing, Robeco provides Australian investors with a strong foundation built on robust research and innovative methodologies. Our data-driven models focus on sustainable, incremental returns while managing relative and absolute risk—making them a stable choice for superannuation funds focused on long-term growth.
Enhanced indexing combines passive investment efficiency with an active overlay, offering superannuation funds a cost-effective way to pursue additional returns. By following a rules-based, systematic approach, our enhanced indexing strategies help investors maintain a stable risk profile, aligning with growth objectives at maximum transparency.
Customisation at the core
At Robeco, we view sustainability and customisation as essential to meeting the unique goals of Australian investors. We actively engage clients in building tailored and flexible solutions that align with their prevailing values and objectives, using advanced tools and techniques.
- Sustainable-alpha signals: As quant researchers, we integrate sustainability by working closely with Robeco’s sustainability analysts and utilising in-house tools like the UN’s Sustainable Development Goals framework and carbon assessments. Through advanced techniques such as machine learning and applied artificial intelligence tools, we are able to explore and integrate new ways to capture alpha while addressing environmental, social and governance (ESG) considerations, making our quant approach uniquely capable of catering to diverse sustainability needs.
- Customisation to align with client goals: Our customisation capabilities enable clients to obtain portfolios that reflect their specific preferences, from impact metrics to regulatory alignment. For example, Robeco’s novel 3D optimisation portfolio construction allows investors to balance risk, return, and sustainability in-line with mandates like Your Future, Your Super. This adaptability is crucial for meeting the evolving preferences of Australian clients, who increasingly prioritise metrics that align with the UN SDGs.
The value of quant investing for Australian institutions
Quantitative investing is becoming a preferred choice among Australian institutional investors for its adaptability and precision. Robeco’s expertise in quant, backed by years of research and customisation options, offers distinct benefits:
- Risk-managed returns and customisable core portfolios: Robeco’s quant solutions appeal to superannuation funds for their disciplined risk management and flexibility. Our enhanced indexing strategy, for instance, allows funds to capture returns while maintaining a controlled relative risk profile, thereby providing a reliable and cost-effective choice for those seeking returns and sustainable outcomes that go above and beyond standard market indices.
- Client-centric innovation: Our emphasis on client collaboration and open communication is key to building trust and understanding evolving needs. We sincerely believe that to be the core portfolio manager of choice for Australian clients requires a very close alignment between asset manager and asset owner. We have delivered various innovative quantitative solutions that incorporate very specific risk, return and sustainability requirements while offering maximum flexibility to clients if their needs should change. This client-centricity, coupled with an innovative mindset while delivering returns and sustainable outcomes, has been paramount to our success.
The future of quant in Australia: A collaborative path forward
Robeco remains dedicated to advancing quant investing in Australia, leveraging our expertise to provide transparent, customised solutions that align with regulatory standards and sustainability goals. With $30 billion in quant assets across Australia and New Zealand, our long-term partnerships are rooted in transparency and trust. Together with our clients, we are prepared to navigate the complex investment environment of today and beyond, building on a foundation of innovation, sustainability, and collaboration.
To learn more about how Robeco’s quantitative investing strategies can help you navigate the evolving investment landscape, visit our website: https://www.robeco.com/en-au/about-us/key-strengths/quantitative-investing
Wilma de Groot is head of core quant equities, head of factor investing equities and deputy head of quant equity at Robeco.