Our disciplined investment process enables us to harness the inefficiencies resulting from market biases in emerging markets. We employ a) active country allocation to capture differences in risk and opportunities between countries; b) fundamental stock selection analysis that maintains a long-term investment view to uncover structural drivers; c) quantitative models as a tool to exploit the behavioral biases of market participants; d) a value bias as we identify undervalued opportunities where the structural earnings outlook is not yet appreciated by the market.
The investment process starts with active top-down country allocation, where we identify the positive and negative macro drivers across different emerging markets. Around 80% of the portfolio is invested in the top five most attractive countries. Stock selection in a specific country is based on these macro drivers, the proprietary quantitative stock selection model and an in-depth fundamental company analysis to identify those stocks with the ability to outperform in the long run. The focus is on companies with a sound business model, solid growth prospects and a reasonable valuation.
The team, which is headed by Wim-Hein Pals, who co-founded Robeco’s Emerging Markets capability in 1994, has eight portfolio managers and five research analysts with specific country and sector coverage. The average investment experience of its members is more than 15 years and they have diverse cultural backgrounds, bringing local knowledge and different point of views to the investment process. The team is supported by substantial internal resources, including Robeco’s Hong Kong-based Asia Pacific team.
Our approach: We consider active country allocation to be instrumental when investing in emerging markets and an essential part of the fundamental bottom-up stock selection process.
Robeco Institutional Asset Management B.V. (DIFC Branch) is regulated by the Dubai Financial Services Authority (“DFSA”) and only deals with Professional Clients and Market Counterparties, and does not deal with Retail Clients as defined by the DFSA.
Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.