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Emerging High Conviction Equity

Emerging High Conviction Equity

Investing in the most attractive companies in emerging countries throughout the world

Key points:

  • Benchmark agnostic strategy with no index restrictions for portfolio construction
  • High conviction portfolio with 35 to 50 stocks
  • Balanced approach with top-down country allocation and bottom-up stock selection

Philosophy

Our disciplined investment process aims 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.

Process

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.

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Team

The strategy is managed by a dedicated team of EM specialists with specific country and sector coverage. The EM team is embedded in Robeco's Global Fundamental Equities group of 65 investment professionals, including the Asia Pacific team based in Hong Kong and Shanghai.

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.

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Disclaimer

This page is intended for US prospects, clients and investors only and includes information about the capabilities, staffing and history of RIAM US and its participating affiliates, which may include information on strategies not yet available in the US. SEC regulations are applicable only to clients, prospects and investors of RIAM US. Robeco BV, Robeco HK and Robeco SH are considered a “participating affiliate” of RIAM US and some of their employees are “associated persons” of RIAM US as per relevant SEC no-action guidance. Employees identified as associated persons of RIAM US perform activities directly or indirectly related to the investment advisory services provided by RIAM US. In those situations, these individuals are deemed to be acting on behalf of IUAM, a US SEC registered investment adviser.

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