Robeco Emerging Markets Smaller Companies Eq.I USD

In June, the MSCI Emerging Markets Midcap Index increased by 3.36% in euro terms, lagging the 4.3% increase for developed markets. Key positive event was global central banks taking cognizance of the widespread signs of global growth slowdown and expressing their readiness to ease. Also, the recently concluded G20 meeting in Osaka ended on a modestly positive note, with trade talks between the US and China resuming. Although punitive measures have not been rolled back, additional tariffs have been delayed indefinitely, with the partial lift of the ban on Huawei an added positive.Emerging Asia was the best region in EMs, led by China on less trade tensions and some consumption stimulus. Within EMEA, Russia sustained its strong performance, thanks to firmer oil prices and an accommodative stance from the central bank. In Latin America, Brazil performed well, backed by the progress in the passing of the key social security reform bill. Mexico reached a temporary truce with the US to contain the flow of immigrants in exchange for no escalation in tariffs on Mexican imports to US.

The fund is allowed to pursue an active currency policy to generate extra returns. However, given the high transaction costs involved, the fund will be reluctant to use this possibility.

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 Smaller Companies 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 Smaller Companies invests globally in emerging economies. The focus is on companies which combine a sound business model and solid growth prospects with a reasonable valuation. These companies are less internationally active and their performance has a strong relation with the domestic economic development. 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. Risk management is fully integrated in the investment process to ensure that positions meet predefined guidelines and the portfolio is well diversified. The fund can protect investors from negative currency developments through active currency hedging. The fund aims to be fully invested. Robeco Emerging Markets Smaller Companies aims to outperform the MSCI Emerging Markets Mid Cap Index over a full market cycle. 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.