Robeco Sustainable Asian Stars Equities FL USD

Vicki Chi is Portfolio Manager in the Asia Pacific team with a focus on defensive sectors. Prior to joining this team in 2014, she was an Analyst in the Robeco Emerging Markets team where she covered Chinese stocks in the telecom and banking sector. Vicki started her career in 2006 at Robeco. She is a native speaker of Mandarin Chinese and holds a Master’s in Business Administration from Erasmus University Rotterdam. She also is a CFA® charterholder. Joshua Crabb is Lead Portfolio Manager and Head of Asia Pacific Equities. Before joining Robeco in 2018, Joshua was Head of Asian Equities at Old Mutual and Portfolio Manager at BlackRock and Prudential in Hong Kong. He started his career in the investment industry as Sector Analyst at BT Financial Group in 1996. Joshua holds a Bachelor's with Honors in Finance from the University of Western Australia and he is a CFA® charterholder.

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 0.05% 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.

The fiscal consequences of investing in this fund depend on the investor's personal situation. For private investors in the Netherlands real interest and dividend income or capital gains received on their investments are not relevant for tax purposes. Each year investors pay income tax on the value of their net assets as at 1 January if and inasmuch as such net assets exceed the investor’s tax-free allowance. Any amount invested in the fund forms part of the investor's net assets. Private investors who are resident outside the Netherlands will not be taxed in the Netherlands on their investments in the fund. However, such investors may be taxed in their country of residence on any income from an investment in this fund based on the applicable national fiscal laws. Other fiscal rules apply to legal entities or professional investors. We advise 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 via exclusions, ESG integration, ESG and environmental footprint targets, 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 fundamental investment analysis to assess existing and potential (long-term) ESG risks and opportunities. In the stock selection the fund limits exposure to elevated sustainability risks. The fund also targets a better ESG score and at least 20% lower carbon footprint compared to the reference index. In addition, where a stock issuer is flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to exclusion. Lastly, the fund makes use of shareholder rights and applies proxy voting in accordance with Robeco's proxy voting policy.For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on MSCI AC Asia ex Japan Index (Net Return, USD).

March saw Asian markets flat (+0.04%), outperforming the world index by over 4%, amid tariff uncertainties, US recession fears, and weak AI sentiment. Tariff sentiment fluctuated ahead of President Trump's 'Liberation Day' announcements on 2 April, with the key development being a 25% tariff on imported autos. These uncertainties, combined with hits to confidence, fueled US recession worries. AI sentiment worsened after DeepSeek-led cost deflation and wariness about AI capital expenditures. India (+9.2%) rebounded from February's sell-off, driven by improved high-frequency indicators, RBI liquidity easing, INR appreciation, and foreign buying. China (+2.0%) continued its rally, aided by consumption stimulus during the Two Sessions, though this stalled mid-month after Xiaomi-led capital-raising efforts. South Korea (-1.4%) climbed briefly due to Samsung, but corrected sharply after Trump's auto tariff announcement, hitting export sectors such as semiconductors, chemicals/metals, autos, and equipment. Taiwan (-11.2%) was the worst performer, dragged by weakening AI sentiment. ASEAN (+1.6%) stayed resilient, supported by Indonesia's banks announcing buybacks and dividends.

Based on transaction prices, the fund's return was 1.74%. In March, Robeco Sustainable Asian Stars outperformed the index. Stock selection was positive in China and South Korea, but detracted in Vietnam. The underweight in Taiwan contributed positively, but being underweight in India detracted. In terms of sectors, stock selection was positive in financials and utilities but detracted in materials.   On the positive side, Bank Rakyat recovered after announcing positive shareholder return plans. ICICI Bank bounced back with positive sentiment in India. ENN Energy received a cash-plus-shares offer at a 35% premium from its parent company, which is trying to take advantage of the undervaluation of its assets. The underweight in TSMC contributed positively this month. Chinese medical equipment and consumable company Shandong Weigao rebounded after announcing increasing payout ratios and a positive outlook at first-quarter results.   Conversely, the AI exposures in the portfolio detracted this month: FPT in Vietnam, and Chroma, Lite-On Technology and Mediatek in Taiwan. Samsung Electronics performed relatively better, and we own the preferred shares for additional upside from potential Value Up initiatives.

The beginning of April saw tariffs imposed at the upper end of expectations, reflecting President Trump's negotiating style of starting as high as possible. This triggered global shockwaves, causing equity markets to decline significantly. Earlier this year, equity market concerns focused on high valuations, particularly in parts of the US and the global IT sector. The current turmoil has sparked speculation about macroeconomic impacts, fueling panic selling. Despite reasonable valuations, Asia hasn't been spared, though post-sell-off, it appears more attractively valued. Unlike the US, Asia doesn't face inflationary pressures from tariffs, and many nations are likely to mitigate impacts via negotiated deals, monetary policies, and fiscal measures. Certain countries, sectors, and companies will face minimal effects. As always, there will be winners and losers in this evolving process. Staying calm, focusing on fundamentals, and leveraging volatility to identify alpha opportunities remain crucial strategies during these challenging times.