Robeco Chinese Equities I USD

Mr. Lu is the Head of Investments China. He is responsible for Robeco’s overall investments and research activities in China. Before joining Robeco in Nov 2015, Mr. Lu worked as a Portfolio Manager at Norges Bank Investment Management in Shanghai from 2011 to 2015, and as an analyst in Hong Kong from 2009 to 2011. Prior to that, he worked at the M&A department of Morgan Stanley Asia Ltd. Mr. Lu started his career as an engineer at Motorola, Inc. in 2000 and subsequently held several managerial positions. Mr. Lu is a native Mandarin Chinese speaker. He holds an MBA with Distinction in Finance and Marketing from the Kellogg School of Management at Northwestern University in the US. He also holds a Master’s degree in Electrical Engineering and Computer Science from the University of Illinois in the US and a Bachelor's degree in Biochemistry from Fudan University in China. The Chinese Equities investment team consists of five investment professionals with an average experience of 10 years, combining complementary skills and worldwide investment backgrounds. The team’s portfolio managers place local insights into the context of a wider regional and global perspective. Local presence in Hong Kong and Shanghai allows for optimal coverage of both off- and onshore markets, respectively.

The fund is established in Luxembourg and is subject to the Luxembourg tax laws and regulations. The fund is not liable to pay any corporation, income, dividend or capital gains tax in Luxembourg. The fund is subject to an annual subscription tax ('tax d'abonnement') in Luxembourg, which amounts to 0.01% of the net asset value of the fund. This tax is included in the net asset value of the fund. The fund can in principle use the Luxembourg treaty network to partially recover any withholding tax on its income.

Investors who are not subject to (exempt from) Dutch corporate-income tax (e.g. pension funds) are not taxed on the achieved result. Investors who are subject to Dutch corporate-income tax can be taxed for the result achieved on their investment in the fund. Dutch bodies that are subject to corporate-income tax are obligated to declare interest and dividend income, as well as capital gains in their tax return. Investors residing outside the Netherlands are subject to their respective national tax regime applying to foreign investment funds. We advise individual investors to consult their financial or tax adviser about the tax consequences of an investment in this fund in their specific circumstances before deciding to invest in the fund.

The fund incorporates sustainability in the investment process through exclusions, ESG integration, engagement and voting. The fund does not invest in issuers that are in breach of international norms or where activities have been deemed detrimental to society following Robeco's exclusion policy. Financially material ESG factors are integrated in the bottom-up investment analysis to assess existing and potential ESG risks and opportunities. In the stock selection the fund limits exposure to elevated sustainability risks. In addition, where a stock issuer is flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to engagement. Lastly, the fund makes use of shareholder rights and applies proxy voting in accordance with Robeco's proxy voting policy.The following sections display the ESG-metrics for this fund along with short descriptions. For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on MSCI China 10/40 Index (Net Return, USD).

China's November NBS manufacturing PMI met expectations, rising 0.2 points to 50.3, marking a seven-month high and signaling continued near-term growth. The momentum in industrial activity is expected to remain strong, with the manufacturing PMI output increasing by 0.4 points to 52.4, bolstered by supportive policy measures in the industrial sector. In contrast, the non-manufacturing PMI fell 0.2 points to 50.0, the lowest level since the post-Covid-19 reopening. The services activity PMI remained soft at 50.1, suggesting that improvements in consumption and the service sector will take time, partly due to low consumer sentiment and uncertainties in the property market. The construction activity component further declined by 0.7 points to 49.7, primarily driven by sluggish real estate investment, although there are indications that infrastructure-related construction may have picked up slightly.

Based on transaction prices, the fund's return was -6.34%. Robeco Chinese Equities underperformed versus the benchmark in November. Negative contribution came from consumer discretionary, communication services and materials. Positive contribution came from industrials, healthcare and real estate. At the stock level, the main detractors were NetEase, Zhaojin Mining Industry and Alibaba. The main contributors were Innovent Biologics, Contemporary Amperex Technology and Full Truck Alliance.

We hold a cautiously constructive outlook on the Chinese market, particularly in light of the policy shift announced during the September Politburo meeting. This meeting emphasized a commitment to achieving a 5% GDP target while supporting property prices and boosting consumption and capital markets. However, we anticipate near-term volatility due to geopolitical uncertainties surrounding President Trump's second term. The September meeting conveyed a sense of urgency, reflecting a proactive approach to addressing economic challenges. The coordinated efforts aim to balance support for both production and consumption, driving sustained long-term economic growth and stability. The breadth of measures introduced by financial regulators, alongside the commitments made during the Politburo meeting, underscores the Chinese leadership's determination to navigate the current economic landscape and foster a more resilient economy.