Robeco Asia-Pacific Equities I EUR

The Asia Pacific markets fluctuated in June and ended the month nearly unchanged. The US dollar rebounded versus most Asian currencies supported by the Fed talking about a reduction of money printing. Though this sounded hawkish, most bond yields actually fell in June, especially in Australia. Lower rates are better for growth stocks, so value stocks lagged in June. The Chinese yuan dropped from its strongest level since 2018, while the Japanese yen continued to trade remarkably weak and has become really cheap. Unfortunately we can't use our cheap yen to travel to Japan and watch the Olympics this summer. The Games are on, but with few spectators allowed. Covid restrictions remain tight and many Asia Pacific governments focus on getting as close to zero as possible. Most countries have only reached vaccination rates of 5-15% so far and therefore lag behind Europe and the US in reopening. Bond rates and economic restrictions are important, but let's not forget that earnings in the end underpin equity prices. And Asia Pacific earnings are going to be really strong in 2021 and upward revisions continue. Expectations now call for 32% earnings growth in our region in 2021.

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.