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Disclaimer

1. General
Please read this information carefully.

This website is prepared and issued by Robeco Hong Kong Limited ("Robeco"), which is a corporation licensed by the Securities and Futures Commission in Hong Kong to engage in Type 1 (dealing in securities); Type 2 (dealing in futures contracts); Type 4 (advising in securities) and Type 9 (asset management) regulated activities. The Company does not hold client assets and is subject to the licensing condition that it shall seek the SFC’s prior approval before extending services at retail level. This website has not been reviewed by the Securities and Futures Commission or any regulatory authority in Hong Kong.

2. Important risk disclosures
Important risk disclosures Robeco Capital Growth Funds (“the Funds”) are distinguished by their respective specific investment policies or any other specific features. Please read carefully for the risks of the Funds:

  • Some Funds are subject to investment, market, equities, liquidity, counterparty, securities lending and foreign currency risk and risk associated with investments in small and/or mid-capped companies.

  • Some Funds are subject to the risks of investing in emerging markets which include political, economic, legal, regulatory, market, settlement, execution, counterparty and currency risks.

  • Some Funds may invest in China A shares directly through the Qualified Foreign Institutional Investor (“QFII”) scheme and / or RMB Qualified Foreign Institutional Investor (“RQFII”) scheme and / or Stock Connect programmes which may entail additional clearing and settlement, regulatory, operational, counterparty and liquidity risk.

  • For distributing share classes, some Funds may pay out dividend distributions out of capital. Where distributions are paid out of capital, this amounts to a return or withdrawal of part of your original investment or capital gains attributable to that and may result in an immediate decrease in the net asset value of shares.

  • Some Funds’ investments maybe concentrated in one region / one country / one sector / around one theme and therefore the value of the Fund may be more volatile and may be subject to concentration risk.

  • The risk exists that the quantitative techniques used by some Funds may not work and the Funds’ value may be adversely affected.

  • In addition to investment, market, liquidity, counterparty, securities lending, (reverse) repurchase agreements and foreign currency risk, some Funds are subject to risk associated with fixed income investments like credit risk, interest rate risk, convertible bonds risk, ABS risk and the risk of investments in non-investment grade or unrated securities and the risk of investments made in non-investment grade sovereign securities.

  • Some Funds can use derivatives extensively. Robeco Global Consumer Trends Equities can use derivatives for hedging and efficient portfolio management. Derivatives exposure may involve higher counterparty, liquidity and valuation risks. In adverse situations, the Funds may suffer significant losses (even a total loss of the Funds’ assets) from its derivative usage.

  • Robeco European High Yield Bonds is subject to Eurozone risk.

  • Investors may suffer substantial losses of their investments in the Funds. Investor should not invest in the Funds solely based on the information provided in this document and should read the offering documents (including potential risks involved) for details.

3. Local legal and sales restrictions
The Website is to be accessed by “professional investors” only (as defined in the Securities and Futures Ordinance (Cap.571) and/or the Securities and Futures (Professional Investors) Rules (Cap.571D) under the laws of Hong Kong). The Website is not directed at any person in any jurisdiction where (by reason of that person’s nationality, residence or otherwise) the publication or availability of the Website is prohibited. Persons in respect of whom such prohibitions apply or persons other than those specified above must not access this Website. Persons accessing the Website need to be aware that they are responsible themselves for the compliance with all local rules and regulations. By accessing this Website and any of its pages, you acknowledge your agreement with understanding of the following terms of use and legal information. If you do not agree to the terms and conditions below, do not access this Website or any pages thereof.

The information contained in the Website is being provided for information purposes.

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. The information contained in the Website does not constitute investment advice or a recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. An investment in a Robeco product should only be made after reading the related legal documents such as management regulations, prospectuses, most recent annual and semi-annual reports, which can be all be obtained free of charge at www.robeco.com/hk/en and at the Robeco Hong Kong office.

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The information is based on certain assumptions, information and conditions applicable at a certain time and may be subject to change at any time without notice. Robeco aims to provide accurate, complete and up-to-date information, obtained from sources of information believed to be reliable. Persons accessing the Website are responsible for their choice and use of the information.

5. Investment performance
No assurance can be given that the investment objective of any investment products will be achieved. No representation or promise as to the performance of any investment products or the return on an investment is made. The value of your investments may fluctuate. The value of the assets of Robeco investment products may also fluctuate as a result of the investment policy and/or the developments on the financial markets. Results obtained in the past are no guarantee for the future. Past performance, projection, or forecast included in this Website should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Fund performance figures are based on the month-end trading prices and are calculated on a total return basis with dividends reinvested. Return figures versus the benchmark show the investment management result before management and/or performance fees; the fund returns are with dividends reinvested and based on net asset values with prices and exchange rates of the valuation moment of the benchmark.

Investments involve risks. Past performance is not a guide to future performance. Potential investors should read the terms and conditions contained in the relevant offering documents and in particular the investment policies and the risk factors before any investment decision is made. Investors should ensure they fully understand the risks associated with the fund and should also consider their own investment objective and risk tolerance level. Investors are reminded that the value and income (if any) from shares of the fund may be volatile and could change substantially within a short period of time, and investors may not get back the amount they have invested in the fund. If in doubt, please seek independent financial and professional advice.

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Sustainable investing

Carbon allowances, carbon credits and carbon offsets

Carbon allowances and carbon credits/offsets form part of carbon markets that attempt to reduce greenhouse gas emissions by putting a price on them, effectively turning CO2 into a commodity. They are growing in size to account for an increasing amount of global emissions. While the terms are often used interchangeably, they trade on two distinct markets – an official, or compliance market for carbon allowances, and an unofficial, voluntary one for carbon credits/offsets.


Carbon allowances

Carbon allowances are essentially permission slips from a government or governmental agency that allow a company to emit one ton of CO2, or CO2 equivalent (CO2e). Governments set emission targets in advance and gradually reduce them over time as they attempt to meet net-zero targets by 2050.

As they are officially sanctioned, they form part of compliance markets that allow the slips to be traded. If the allowance isn’t used, it can be sold to another company on ‘cap and trade’ carbon markets. Likewise, extra permission slips can be purchased if a company thinks it will exceed its allowance. The market’s existence encourages companies to reduce their emissions in line with the government’s targets, or face an increasingly expensive bill for the extra slips.

There are now about 25 cap and trade compliance markets around the world, the biggest of which are in the EU, the UK, California and China. They were rather ineffective when first launched in the 2000s, as the price of the credits was too low and implementation too sporadic. But they are now working well, with an average global credits price of USD 28 per ton of CO2e, and a much higher price of EUR 90 ton/CO2e within the EU’s Emission Trading Scheme. If taken together with carbon taxes, the two pricing mechanisms now cover 20% of global emissions.

Carbon credits / carbon offsets

A carbon credit, also known as a carbon offset, is traded between private parties on the voluntary carbon market. They are issued by carbon crediting schemes and represents the reduction, removal or avoidance of one ton of CO2e. Carbon credits/offsets are uniquely serialized, issued, tracked and cancelled by means of an electronic registry.

There are two types of carbon credits/offsets. Removal credits are generated by projects that directly remove CO2 from the atmosphere either naturally through reforestation or other habitat restoration, bioenergy or soil carbon enhancement, or through technology such as direct air capture technology with geological storage.

Avoidance credits are created by preventing the CO2 from entering the atmosphere in the first place, most commonly by replacing fossil fuels with renewable energy, or through biodiversity preservation projects. Avoided emissions are theoretical reductions measured against a future projected baseline level, but do not lower the amount of carbon entering the atmosphere elsewhere.

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Carbon credit/offset projects. Source: carboncredits.com

Creating returns that benefit the world we live in

Credibility problems

The credits/offsets are issued by certification agencies such as the not-for-profit VERRA, which issues the Verified Carbon Standard. As with carbon allowances, they can be traded. A company that wishes to mitigate its carbon footprint can buy a credit on the voluntary market to offset it. In this way, they are also known as carbon offset credits, making the terms interchangeable.

These voluntary markets are growing in popularity, but have credibility issues. One is that many of the credits were issued at historic prices that may be meaningless in relation to the impact of the emissions that occur many years later. They offer a ‘feelgood factor’ for companies rather than genuine emissions reductions.

Another is that it is essential to show ‘additionality’ – that the action actually resulted in emissions reduction outside of what was legally required. A company paying for reforestation would need to show that the land would not have been reforested anyway, resulting in no new net contribution due to its efforts. This is often hard to verify and can lead to accusations of greenwashing.


The best time to plant a tree was 20 years ago; the second-best time is now – old Chinese proverb

Use by companies, consumers and investors

Nearly all corporate climate strategies rely heavily on carbon offsets, particularly in hard-to-abate sectors such as airlines. This has prompted a fierce debate on the performance and credibility of carbon credit markets and the legitimacy of carbon offsets in decarbonization strategies.

Carbon offsetting is gaining traction though with consumers, as it can be used to compensate for emissions in sectors such as tourism. Airlines now offer customers the opportunity to offset the emissions caused by their flight by paying for trees to be planted on land sequestered by the airline. A flight from Amsterdam to Athens, for example, would require three trees to offset the emissions.

For investors, the Robeco Global Climate Survey 2022 showed that the carbon credits and related offsets concept is also winning over investors as well. Some 63% of those surveyed said they thought that higher-cost carbon credits could be a powerful tool for reducing emissions, while 58% thought they would become an asset class over the next two to three years. However, 55% also thought that carbon markets were still too illiquid to be considered by their organization.

Carbon credits have a role in reducing carbon emissions

Carbon credits have a role in reducing carbon emissions

Investor views on carbon credits. Source: Robeco Global Climate Survey, March 2022