Robeco Emerging Stars Equities IE EUR

In February, the MSCI Emerging Markets Index declined by 4.4% in euro terms, still performing better than the 7.6% drop for developed markets. Key item during February was the spread of the coronavirus, and especially its contagion outside China. Even though a large part of the Chinese economy came to a standstill in February, the country actually was the best-performing emerging market, supported by a declining number of new infections and the expectation of policy support from the government. Factories in China are now gradually resuming operations. Greece, Poland, Turkey, Russia, Brazil and South Africa were the worst-performing markets, as the proliferation of the virus outside China negatively impacted global market sentiment. The negative sentiment also impacted commodity prices, with Brent oil down 13%. To cushion the impact on the economy, several emerging central banks cut interest rates, including in Brazil, Mexico, China, Russia, Turkey and Indonesia.

The fund is allowed to pursue an active currency policy to generate extra returns and can engage in currency hedging transactions.

In principle, this share class of the fund does distribute dividend.

Robeco Emerging Stars 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 Stars 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. On average, the fund invests in 35-50 companies and portfolio construction is independent of the index. Risk management is fully integrated in the investment process to ensure that positions meet predefined guidelines and the portfolio is diversified. The fund can protect investors from negative currency developments through active currency hedging. The fund aims to be fully invested. Robeco Emerging Stars aims to outperform the MSCI Emerging Markets 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 into the investment process to ensure that positions always meet predefined guidelines.