Robeco Emerging Markets Equities M EUR

In August, emerging markets declined by 2.16%, lagging developed markets which were up 1.81%.US sanctions, trade tariffs and risk of contagion in emerging markets occupied the headlines, souring investor sentiment. A basket of EM currencies fell 2%. Barring the Thai baht and the Korean won, all EM currencies were down, with five of them falling in excess of 5% (Turkish lira, South African rand, Russian ruble, Brazilian real, Chilean peso). Energy prices picked up: Brent crude was up 4.4%. Precious metals and soft commodities mostly fell, while industrial metals were mixed: aluminum up 2%, copper down 5%. Worst markets were Argentina, Turkey and Brazil. Brazilian equities plunged in the wake of political uncertainty. Turkish equities reflected the depreciation of the lira, as the markets suffered from the imposition of sanctions and trade tariffs by the US. Russian equities were dragged down by losses on the ruble, as investors took cognizance of rising risks of further US sanctions.China continued its downtrend as the US upped the ante in the Sino-US trade conflict. The central banks of India, Indonesia and the Philippines raised interest rates to arrest the slide in their currencies.

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.

For Robeco Emerging Markets Equities, ESG factors are incorporated in the investment and decision-making process. A proprietary bi-annual corporate governance questionnaire is an integral part of the fundamental framework. The team assesses shareholder, board, management, government, social and environmental factors where appropriate. The team also includes ESG considerations in their country allocation process. ESG-based considerations impact the stock valuation analysis. Relevant ESG issues are discussed with company management on a case by case basis. Input from RobecoSAM Sustainability analysts is used to further enhance ESG integration in the investment process.

Robeco Emerging Markets Equities invests globally in emerging economies. The focus is on companies which combine a sound business model and solid growth prospects with a reasonable valuation. The first step in portfolio composition is the top-down country selection, as research shows that country specific factors drive stock returns in emerging markets. The second step is in-depth fundamental analysis of companies and serves to identify stocks with the ability to outperform in the long run. Key items of our fundamental analysis are: growth prospects of sector, position of company within sector, competitive strength, financial health and strategy, corporate governance and management quality. We screen stocks with our proprietary quantitative model for attractive characteristics. Key items of our fundamental analysis are: growth prospects of sector, position of company within sector, competitive strength, financial health and strategy, corporate governance and management quality. We screen stocks with our proprietary quantitative model for attractive characteristics. This Sub-fund may invest in China A-shares via the QFII and/or a Stock Connect Programme which may entail additional clearing and settlement, regulatory, operational and counterparty risks.

Risk management is fully integrated in the investment process to ensure that positions always meet predefined guidelines.