Robeco Asian Stars Equities D EUR

Asian markets delivered a positive performance (+1.3%) in October, but lagged US & European markets, which rallied 5-7%). Anticipation of rate hikes in the US has a negative impact on Asia. There is also fear of lower growth having an impact on cyclical markets. China GDP only grew 3.9% in Q3 and industrial production grew only 3% in September. The Chinese equity market recovered 3% after heavy losses in Q3. Inflation continues to be top of mind for global investors, but in Asia this is still at an early stage. In China, the September CPI was just 0.7%, but PPI jumped 10.7% YoY. As a result, we have begun to see companies in the region reporting margin pressure from increasing input costs. Global Covid cases continue to decline and mobility restrictions continue to be eased – with Singapore announcing new travel easing, and Thailand allowing international travel. Remarkable is that in countries like Indonesia and India, cases continue to fall sharply, even though vaccination rates are still lower than 25%. Economic activities are recovering and the Indonesian market (+8.3%) performed very well in October.

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

The fund does not distribute dividends

Robeco Asian 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 Asian Stars Equities is an actively managed fund that invests in stocks of the most attractive companies in Asia. The selection of these stocks is based on fundamental analysis.The fund's objective is to achieve a better return than the index. The fund promotes ESG (i.e. Environmental, Social and corporate Governance) characteristics within the meaning of Article 8 of the European Sustainable Finance Disclosure Regulation and integrates ESG and sustainability risks in the investment process. In addition, the fund applies an exclusion list on the basis of controversial behavior, products (including controversial weapons, tobacco, palm oil and fossil fuel) and countries, next to voting and engaging. The fund's focus is on the high-growth developing countries in the region. The fund focuses on stock selection and has a concentrated portfolio.The majority of stocks selected through this approach will be components of the Benchmark, but stocks outside the Benchmark index may be selected too. The fund can deviate substanitally from the weightings of the Benchmark. The fund aims to outperform the Benchmark over the long run, whilst still controlling relative risk through the applications of limits (on VaR Ratio) to the extent of deviation from the Benchmark. This will consequently limit the deviation of the performance relative to the Benchmark. The Benchmark is a broad market weighted index that is not consistent with the ESG characteristics promoted by the fund.

Risk management is fully integrated into the investment process to ensure that positions always meet predefined guidelines.