Robeco Emerging Markets Equities M EUR

In April, the MSCI Emerging Markets Index was flat in euro terms, lagging developed markets, which were up 2.2%. Best emerging countries were Poland, Taiwan, Argentina and Greece, while Chile, Colombia and Peru were the worst performers. Vaccinations are helping the US and Europe to gradually open up, yet the coronavirus still remains an issue for several emerging countries, with rising infections in India and ongoing high infection rates in most South American countries. At the same time, the earnings outlook is actually improving across the board, with analysts estimating upgrades and many companies reporting better-than-expected Q1 numbers. Commodity prices were rising in April, with the iron ore price up 14% and the oil price up 7%. In Peru, presidential elections were held, but did not lead to a clear winner. The final outcome will be determined in June in a run-off between the left-wing candidate Castillo and the more market-friendly candidate Keiko Fujimori.

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

The fund does not distribute dividend. The income earned by the fund is reflected in its share price. The fund's entire result is thus reflected in its share price development.

Robeco Emerging Markets 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 Emerging Markets Equities is an actively managed fund that invests in stocks in emerging countries across the world. 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. Given that emerging economies are growing faster than developed countries and have stronger balance sheets for governments, companies and households. The fund selects investments based on top-down country analysis and bottom-up stock ideas. The focus is on companies with a sound business model, solid growth prospects and reasonable valuation.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 in the investment process to ensure that positions always meet predefined guidelines.