Robeco Chinese A-share Equities IE EUR

The Chinese Equities investment team consists of five investment professionals with an average experience of 10 years, combining complementary skills and worldwide investment backgrounds. The team’s portfolio managers place local insights into the context of a wider regional and global perspective. Local presence in Hong Kong and Shanghai allows for optimal coverage of both off- and onshore markets, respectively. Mr. Lu is the Head of Investments China. He is responsible for Robeco’s overall investments and research activities in China. Before joining Robeco in Nov 2015, Mr. Lu worked as a Portfolio Manager at Norges Bank Investment Management in Shanghai from 2011 to 2015, and as an analyst in Hong Kong from 2009 to 2011. Prior to that, he worked at the M&A department of Morgan Stanley Asia Ltd. Mr. Lu started his career as an engineer at Motorola, Inc. in 2000 and subsequently held several managerial positions. Mr. Lu is a native Mandarin Chinese speaker. He holds an MBA with Distinction in Finance and Marketing from the Kellogg School of Management at Northwestern University in the US. He also holds a Master’s degree in Electrical Engineering and Computer Science from the University of Illinois in the US and a Bachelor's degree in Biochemistry from Fudan University in China.

The fund is established in Luxembourg and is subject to the Luxembourg tax laws and regulations. The fund is not liable to pay any corporation, income, dividend or capital gains tax in Luxembourg. The fund is subject to an annual subscription tax ('tax d'abonnement') in Luxembourg, which amounts to 0.01% of the net asset value of the fund. This tax is included in the net asset value of the fund. The fund can in principle use the Luxembourg treaty network to partially recover any withholding tax on its income.

Investors who are not subject to (exempt from) Dutch corporate-income tax (e.g. pension funds) are not taxed on the achieved result. Investors who are subject to Dutch corporate-income tax can be taxed for the result achieved on their investment in the fund. Dutch bodies that are subject to corporate-income tax are obligated to declare interest and dividend income, as well as capital gains in their tax return. Investors residing outside the Netherlands are subject to their respective national tax regime applying to foreign investment funds. We advise individual investors to consult their financial or tax adviser about the tax consequences of an investment in this fund in their specific circumstances before deciding to invest in the fund.

The fund incorporates sustainability in the investment process through exclusions, ESG integration, engagement and voting. The fund does not invest in issuers that are in breach of international norms or where activities have been deemed detrimental to society following Robeco's exclusion policy. Financially material ESG factors are integrated in the bottom-up investment analysis to assess existing and potential ESG risks and opportunities. In the stock selection the fund limits exposure to elevated sustainability risks. In addition, where a stock issuer is flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to engagement. Lastly, the fund makes use of shareholder rights and applies proxy voting in accordance with Robeco's proxy voting policy.The following sections display the ESG-metrics for this fund along with short descriptions. For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on MSCI China A International Index (Net Return, EUR).

China's growth momentum slightly weakened in October, partly due to seasonality. The NBS PMI report indicates a decline in manufacturing and non-manufacturing activity, suggesting a moderation in economic momentum. The manufacturing PMI fell 0.8 points to 49.5, reversing four consecutive monthly gains. The non-manufacturing PMI fell 1.1 points to 50.6 in October. Service activity declined, particularly in real estate services and capital market services. Overall, the October NBS PMI readings suggest a potential instability in the recovery momentum observed in August and September. The real estate sector weakness, soft labor market conditions, and concerns about domestic demand continue to weigh on economic activity and pricing power. This correction is also partly due to seasonal factors, as the NBS Manufacturing PMI typically declined by 0.4 ppt on average in October from 2016-2022, then rose by 0.3 ppt in November.

Based on transaction prices, the fund's return was -5.58%. Robeco Chinese A-share Equities underperformed its reference index by -1.5% in October. Negative contributions came from industrials and financials. Positive sector contributions came from IT and energy. The main detractors were Anhui Heli, Foxconn Industrial Internet and Beijing New Building Materials. The main contributors were Jiangsu Hengrui Pharmaceuticals, Luxshare Precision Industry and Advanced Micro-Fabrication Equipment.

We have a constructive view for China's market as China's policymakers aim to boost market confidence through more supportive policies focused on expanding domestic demand and preventing risks. Although recovery of the property sector continues to be the key thing to monitor. Policy is turning more supportive again, with a new round of easing measures expected in the second half of the year, as the July Politburo meeting set a more pro-growth policy tone for 23H2, with a focus on expanding credit to the real economy, boosting confidence, and mitigating risks. Overall, while the Chinese economy is still facing challenges, we think the government has drawn a clear line to do whatever it can to avoid systematic risk. Although sentiment is at a very low level, with the gradual improvement in macro data recently, there are also reasons for optimism, as China works to stabilize its economy through a cumulative policy rollout. Following the upside surprise in Q3 GDP growth, the 5% of GDP goal set at the beginning of the year is within reach.