Robeco Emerging Markets Equities M EUR

In September, the MSCI EM Index dropped by 2.2% in EUR, marginally better than the 2.4% decline for developed markets. Important developments were the rise in US bond yields following a more aggressive tapering timeline by the Fed, and rising energy prices. As a consequence, oil and gas exporting countries such as Russia, Colombia and the Middle Eastern countries were among the best-performing countries. Brazil was the worst-performing country, affected by a larger-than-expected 1% interest rate hike, political uncertainty and potential weaker commodity demand from China. Several other emerging countries, including Russia, Mexico, Hungary and Peru also hiked interest rates, but to a lesser degree. Turkey was the exception with a 1% interest rate cut to 18%. China dealt with several power cuts, and the large property developer Evergrande is facing a potential default. China is likely to manage any potential default or restructuring in a controlled manner. The Chinese stock market lagged the overall MSCI EM Index only slightly.EM equity funds saw further subscriptions of USD 5 billion, bringing the year-to-date inflow to USD 100 billion.

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.