Robeco Emerging Stars Equities ML USD

In May, the MSCI Emerging Markets Index was down 0.8% in euro terms, lagging developed markets, which were up 3.2%. Global markets were supported by the gradual easing of the lockdowns, ongoing fiscal and monetary support and news on potential vaccines. Commodities bounced back, led by energy prices, with the Brent crude price up 37%. At the same, US-China relations deteriorated, with renewed discussion on potential Chinese ADR delisting and China's NPC's approval of the new national security law for Hong Kong, which puts its special status into jeopardy.Within emerging markets, several countries also announced gradual easing of the lockdown measures. However, in some countries, such as Brazil, Mexico, India and South Africa, the number of new cases is still rising. As many as eleven EM central banks cut interest rates in May, on top of the fiscal stimuli, to soften the impact of the corona crisis. China decided not to have a GDP target this year, but will focus on supporting employment instead. The best emerging markets were Argentina, Russia and Brazil, while India and Taiwan were among the main laggards.

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

In principle, the fund does not intend to distribute dividend and so both the income earned by the fund and its overall performance are reflected in its share price.

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.