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Emerging markets

Moving beyond short-term noise

Back in 1930, we made our first emerging market investment in Peru. Today, we manage more than EUR 34 billion (May 2021) in emerging market strategies.

Download: Guide to emerging markets investing

Long-term view

  • Emerging markets are not homogeneous, but instead a grouping of constantly evolving and highly diverse countries at different stages of development. With equity investments often driven by retail investors and short-term market noise, a long-term view is vital to uncovering the structural drivers in emerging markets – a key ingredient for the emerging markets equity strategies.

  • This long-term fundamental view plus Robeco’s quant and sustainable investing capabilities together allow us to harness the wide range of emerging markets opportunities.

Time tested country allocation & stock selection approach

  • Investing in emerging markets is more subtle and nuanced than just investing in companies that benefit from certain growth prospects. For one, emerging equity markets are less homogeneous than developed ones, and tend to be in different stages of growth. They also typically feature a wide variety in their demographic composition, approaches to policy implementation and fiscal management, as well as their level of integration with the global financial system.

    Understanding the socio-economic and political differences between the different countries in which companies operate is an important input for successful stock selection.
  • Investors looking for exposure to emerging markets equities must therefore keep in mind that country analysis is critical to the investment process. The key is to determine the investment themes that are expected to drive stock performance and to identify those companies that are best positioned to benefit from these themes.

    This is where Robeco’s time-tested approach can make a difference. A proprietary five-factor country analysis framework is applied to analyze a country’s attractiveness, capture changes in a country’s outlook, and exploit differences in the socio-economic and political variables among countries.
    Our strategies

ESG Integration in emerging markets: challenging but crucial

  • The landscape for sustainability is changing rapidly. Long overlooked in emerging markets, sustainability awareness has been spreading across emerging countries and companies.

    Governments in emerging markets have started to adopt sustainability objectives such as the net zero emissions target. A growing number of emerging markets companies now clearly state their sustainability objectives in their annual report, and increasingly publish their financial accounts in English on their corporate website. ESG coverage of emerging markets companies by third-party providers has also expanded significantly. Meanwhile, individual emerging markets investors’ attitudes towards sustainability have also shifted radically over the past few years. As a result, reporting standards of emerging markets are converging rapidly with those of the developed markets.

  • Robeco has long been an advocate of sustainable investing in general, and in emerging markets in particular. We started to explicitly integrate ESG criteria into our investment processes for emerging markets equities more than ten years ago. Prior to that, we had already been including certain governance aspects in our processes since 2001 by sending a corporate governance-related questionnaire to listed companies.

  • Today, depending on their sustainability requirements and objectives, we offer investors three main types of sustainable investing solutions: Inside, Focused and Impact. Although these offer different levels of sustainability integration, they do all share the same ESG integration process, as well as our active ownership offering, which includes voting and engagement.

    Active ownership
  • A unique combination

    Robeco’s long-standing expertise in the fields of emerging markets investing, sustainability and quantitative investing mean that we are able to offer a wide variety of solutions that combine our unique know-how in all these areas.
    Our strategies

Tap into our expertise

Keep up with our knowledge and trends through articles, podcasts and videos:

More insights

Tap into our expertise

Keep up with our knowledge and trends through articles, podcasts and videos:

More insights
One crisis dealt with, straight onto the next one
One crisis dealt with, straight onto the next one
Are we out of the woods?
05-04-2022 | Column
PodcastXL: How to read the huge emerging markets discount
PodcastXL: How to read the huge emerging markets discount
Emerging markets look extremely cheap.
01-04-2022 | Podcast
Time to look for bargains with pricing power
Time to look for bargains with pricing power
It’s hugely difficult to make confident predictions in the current environment.
30-03-2022 | Insight
Credit outlook: ‘If I have to make a tackle, I’ve already made a mistake’
Credit outlook: ‘If I have to make a tackle, I’ve already made a mistake’
The Fed may have made a policy mistake by starting this tightening cycle too late.
29-03-2022 | Quarterly outlook
Pursuing the SDGs in emerging markets
Pursuing the SDGs in emerging markets
The 2030 deadline for the UN Sustainable Development Goals (SDGs) is fast approaching, but progress so far has been much too slow.
11-03-2022 | Insight
Robeco statement on Ukraine
Robeco statement on Ukraine
At Robeco we are deeply saddened by the situation in Ukraine.
10-03-2022 | Insight
Stay up to date with our investment views on the Russia-Ukraine conflict
Stay up to date with our investment views on the Russia-Ukraine conflict
In this article we will regularly post updates from the various investment teams.
03-03-2022 | Insight
Podcast: Not seeing red on Russian invasion
Podcast: Not seeing red on Russian invasion
With Russian tanks rolling into the suburbs of Kyiv, what should investors do?
25-02-2022 | Podcast
In addition to emerging markets, we also have four other key strengths: