Important risk disclosures

Robeco Capital Growth Funds (“the Funds”) are distinguished by their respective specific investment policies or any other specific features. Please read carefully for the risks of the Funds:

  • Some Funds are subject to investment, market, equities, liquidity, counterparty, securities lending and foreign currency risk.
  • Some Funds are subject to the risks of investing in emerging markets which include political, economic, legal, regulatory, market, settlement, execution, counterparty and currency risks.
  • Some Funds may invest in China A shares directly through the Qualified Foreign Institutional Investor (“QFII”) scheme and or the use of Shanghai - Hong Kong Stock Connect which may entail additional clearing and settlement, regulatory, operational, counterparty and liquidity risk.
  • For distributing share classes, some Funds may pay out dividend distributions out of capital. Where distributions are paid out of capital, this amounts to a return or withdrawal of part of your original investment or capital gains attributable to that and may result in an immediate decrease in the net asset value of shares.
  • Some Funds’ investments maybe concentrated in one region / one country / one sector / around one theme and therefore the value of the Fund may be more volatile and may be subject to concentration risk.
  • The risk exists that the quantitative techniques used by some Funds may not work and the Funds’ value may be adversely affected.
  • In addition to investment, market, liquidity, counterparty, securities lending, (reverse) repurchase agreements and foreign currency risk, some Funds are subject to risk associated with fixed income investments like credit risk, interest rate risk, convertible bonds risk, ABS risk and the risk of investments in non-investment grade or unrated securities and the risk of investments made in non-investment grade sovereign securities.
  • Some Funds can use derivatives extensively. Derivatives exposure may involve higher counterparty, liquidity and valuation risks. In adverse situations, the Funds may suffer significant losses (even a total loss of the Funds’ assets) from its derivative usage.
  • The Funds can use derivatives extensively and for Robeco High Yield Bonds, it may have a net leverage exposure of over 100% of its net asset value to derivatives. Derivatives exposure may involve higher counterparty, liquidity and valuation risks. In adverse situations, the Funds may suffer significant losses (even a total loss of the Funds’ assets) from its derivative usage.
Robeco Active Quant Emerging Markets Equities invests in stocks of companies in emerging economies throughout the world.  Robeco Asian Stars Equities invests primarily in stocks of Asian companies.  Robeco Asia-Pacific Equities invests in stocks of companies in Asian-Pacific economies.  Robeco BP Global Premium Equities will take exposure of at least two-thirds of its total assets to equities of companies that mainly operate in mature economies (developed market).  Robeco Chinese Equities invests in leading listed Chinese stocks.  Robeco Emerging Conservative Equities will focus on investing in equities that show lower expected volatility than average emerging equity.  Robeco Emerging Debt invests in bonds and similar fixed income securities issued by governments of emerging countries or by entities having their registered office or exercising a preponderant part of their economic activities in emerging countries.  Robeco Emerging Markets Equities invests in stocks of large companies in emerging economies throughout the world.  Robeco Emerging Stars Equities invests worldwide stocks of companies in emerging economies.  Robeco European High Yield Bonds invests in high yield bonds, asset backed securities and similar fixed income securities denominated in European currencies. The Fund is subject to Eurozone risk.  Robeco Global Conservative Equities will focus on investing in equities that show lower expected volatility than average global equity.  Robeco Global Consumer Trends Equities invests worldwide in stocks of companies in consumer-related industries. The Fund can use derivatives for hedging and efficient portfolio management.  Robeco High Yield Bonds invests worldwide in bonds, asset backed securities and similar fixed income securities with a rating of BBB+ or equivalent or lower or with no rating. The Fund can use derivatives extensively and the Fund may have a net leverage exposure of over 100% of its net asset value to derivatives.  Robeco Property Equities invests worldwide in stock of companies in the property sector.  Robeco US Large Cap Equities will invest at least two-thirds of its total assets in equities of US large cap companies.  Robeco US Premium Equities invests in small, medium-sized and large value stocks in the US.  RobecoSAM Sustainable A gribusiness Equities invests worldwide in stocks of sustainable companies in the agricultural sector.

Investors may suffer substantial losses of their investments in the Funds. Investor should not invest in the Funds solely based on the information provided in this document and should read the offering documents (including potential risks involved) for details. Investment involves risks. Past performance is not indicative of future performance. The information contained in this website is provided for reference only and does not constitute any investment advice. Investors are advised to seek independent advice before making any investment decision. Please refer to the relevant offering documents for details including the risk factors before making any investment decisions. This web page is published by Robeco Hong Kong Limited and has not been reviewed by the Securities and Futures Commission. You must read the above information before proceeding. By clicking the “I AGREE” button below, you acknowledge that you have read the relevant risk disclosure statements.

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Emerging debt
Emerging fixed income

Emerging debt

Local currency emerging market debt benchmarked strategy

Key points:

  • Dynamic emerging market fixed income approach with diversified sources of performance
  • Integration and analysis of sustainability factors is key
  • Flexible allocations across local currency, sovereign and corporate debt

Philosophy

Our core investment philosophy is that emerging country fixed income and currency markets are inefficient and that market risk is regularly mispriced. This leads to a wide dispersion in the performance of emerging market assets, offering opportunities that can be exploited by a dynamic and unconstrained investment approach, based upon rigorous country analysis and the integration of Environmental, Social And Governance (ESG) criteria.

Process

The investment process starts with the top-down analysis of the global macroeconomic environment and market themes. These views determine the asset allocation between local currency bonds, hard currency sovereign debt, corporate credit and overall duration exposure. The next step is the bottom-up research to determine the country duration, currency positioning and issue(r) selection based on Robeco’s proprietary country and company research. Sustainability is important in this phase as it often is an early indicator of both future risk and potential investment opportunities.

Team

The strategy is managed within our Global Fixed Income Macro team that covers both developed and emerging markets. It benefits from the macro and country focus of this team. The emerging debt portfolio managers are together responsible for asset allocation strategies, duration and currency management, country allocation and yield curve positioning. They also benefit from the country and credit research expertise of the other fixed income portfolio managers, analysts and researchers.

Get in touch with us

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