Robeco Asia-Pacific Equities F USD

Although the rise in bond yields flattened off in March, the market rotation continued out of long duration (growth) into short duration (cyclical) stocks. Japan widened its target range for long bond yields and Korean bond yields rose above 2%, the highest level since 2018. We believe a secular rise in inflation has begun, but this view is disputed. Resource, steel and semiconductor prices have risen a lot and we are seeing price hikes happening even in Japan. Still, in Japan inflation remains negative for now. Semiconductor shortages are a clear sign that manufacturers can raise prices further. In China, further threats of regulation hurt the burgeoning internet sector. China's new five-year plan has ambitious carbon reduction targets and is no longer very aggressive about GDP growth targets. The country also clearly showed verbal support for its equity market during the correction phase in March. However, property investment is actively discouraged.

The fund is allowed to pursue an active currency policy to generate extra returns.

The fund does not distribute dividend. The fund retains any income that is earned and so its entire performance is reflected in its share price.

Robeco Asia-Pacific Equities integrates ESG factors into its investment process by analyzing the impact of financially material ESG factors to a company’s competitive position and value drivers. We believe that this enhances our ability to understand existing and potential (long-term) risks and opportunities of a company. The impact of material ESG factors can be positive or negative, reflecting risks or opportunities, that ensue from a company’s ESG analysis. If ESG risks and opportunities are significant, the ESG analysis could impact a stock’s fair value and the portfolio allocation decision. In addition to ESG integration, Robeco also has an exclusion policy and conducts proxy voting and engagement activities focused on specific themes, such as climate change, aiming to improve a company’s sustainability profile.

Robeco Asia-Pacific Equities is an actively managed fund that invests in stocks in developed and emerging Asian-Pacific countries. The selection of these stocks is based on fundamental analysis. The fund's objective is to achieve a better return than the index. The fund promotes ESG (i.e. Environmental, Social and corporate Governance) characteristics within the meaning of Article 8 of the European Sustainable Finance Disclosure Regulation and integrates ESG and sustainability risks in the investment process. In addition, the fund applies an exclusion list on the basis of controversial behavior, products (including controversial weapons, tobacco, palm oil and fossil fuel) and countries, next to voting and engaging. The fund focuses on stocks of companies incorporated in Asia, Australia or New Zealand or those companies that exercise major part of economic activity from these regions. Country allocation is a less important performance driver, implemented via country and currency overlays. The majority of stocks selected will be components of the Benchmark, but stocks outside the Benchmark may be selected too. The fund can deviate substantially from the weightings of the Benchmark. The fund aims to outperform the Benchmark over the long run, whilst still controlling relative risk through the applications of limits (on countries and sectors) to the extent of deviation from the Benchmark. This will consequently limit the deviation of the performance relative to the Benchmark. The Benchmark is a broad market weighted index that is not consistent with the ESG characteristics promoted by the fund.

Risk management is fully integrated into the investment process to ensure that positions always meet predefined guidelines.