Robeco has added a Flexible Allocation multi-asset strategy to its range.
The strategy will have an “outcome-focused approach” targeting cash plus 4% on an annual basis, rather than working towards a traditional benchmark.
The asset allocation explicitly considers how conditions vary across the market cycle, the firm said. It aims to exploit market inefficiencies and manage downside risk, without the restrictions a traditional benchmark brings.
The managers have free rein to pick securities across the entire spectrum of assets managed by other Robeco equity and fixed income teams. This means it will not necessarily follow the usual 60-40 multi-asset mix mirrored by standard benchmarks.
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The new offering joins the Sustainable Income Allocation, Sustainable Diversified Allocation and Sustainable Dynamic Allocation options in the range.
Colin Graham, head of multi-asset strategies at Robeco, said: “Many investment strategies are focused on a benchmark. At Robeco we believe our clients don’t start their investment journey with a benchmark, but with an investment goal.
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“Therefore, the central focus of this is achieving an annual return of cash plus 4% return at a medium risk level. However, we’re turning this around by using some of the best underlying security selection from across Robeco, whether that’s from the equity side or credit selection.”
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