Robeco Sustainable Asian Stars Equities FL USD

Asian markets retreated 1.7% in September, outperforming developed markets (-3.6%). This year the World Index is once again driven by US strength (+6%), while Asia is driven by China’s strength (+13%). Performance of the two indices is now in line year-to-date (+2%). The unprecedented divergence of sector performance continued in September. While global investors worried about the drying up of stimulus in the US, the higher level of uncertainty going into a potentially contested US Presidential election, as well as a second wave of Covid-19 in Europe, Xi Jinping’s surprise announcement of aiming for China's carbon neutrality in 2060 was welcomed with both enthusiasm and skepticism. China now produces 28% of the world’s greenhouse gas emissions. For the first time on record it is setting its goal in line with 60 other countries. If the goal is achieved, it could lower global warming projections by 0.2 to 0.3°C, the single biggest reduction measured since the Paris Agreement was signed in 2015. The skepticism focused on local execution of China's top-down policies, given the country’s poor track record in the past, as well as on the low profitability for Chinese companies involved in the renewable energy space.

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

The fund does not distribute dividends

Robeco Sustainable Asian Stars Equities integrates ESG at different stages of the investment process. We use sustainability performance rankings to focus our fundamental analysis on companies that have demonstrated superior sustainability performance compared to their peers. We then analyze 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 risks and opportunities of a company. If ESG risks and opportunities are significant, the ESG analysis could impact a stock’s fair value and the portfolio allocation decision. Throughout the investment process, we strive for a low environmental impact, as measured by GHG emissions, energy consumption, water use and waste generation, with the aim of realizing 20% better levels than the index. In addition to ESG integration, Robeco conducts proxy voting and engagement activities focused on specific themes, such as climate change, aiming to improve a company’s sustainability profile. Furthermore, the fund will not invest in companies exposed to the following controversial sectors or business practices: military contracting, controversial weapons, fire arms, UN Global Compact breaches, tobacco, palm oil and thermal coal, according to strict revenue thresholds.

Robeco Sustainable Asian Stars: Invest in Asia's best. The focus is on the most attractive investments in an exciting growth region. The fund leverages on Robeco's local resources in China and India. The fund will have a high-conviction, high-alpha portfolio with around 30-60 stocks. The fund aims for a significantly better ESG score than the index and reduced footprints for water use, greenhouse gas emissions, waste and energy. 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.