Robeco Asian Stars Equities D EUR

Vicki Chi is Portfolio Manager in the Asia Pacific team with a focus on defensive sectors. Prior to joining this team in 2014, she was an Analyst in the Robeco Emerging Markets team where she covered Chinese stocks in the telecom and banking sector. Vicki started her career in 2006 at Robeco. She is a native speaker of Mandarin Chinese and holds a Master’s in Business Administration from Erasmus University Rotterdam. She also is a CFA® charterholder. Joshua Crabb is Lead Portfolio Manager and Head of Asia Pacific Equities. Before joining Robeco in 2018, Joshua was Head of Asian Equities at Old Mutual and Portfolio Manager at BlackRock and Prudential in Hong Kong. He started his career in the investment industry as Sector Analyst at BT Financial Group in 1996. Joshua holds a Bachelor's with Honors in Finance from the University of Western Australia and he is a CFA® charterholder.

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 0.05% 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.

The fiscal consequences of investing in this fund depend on the investor's personal situation. For private investors in the Netherlands real interest and dividend income or capital gains received on their investments are not relevant for tax purposes. Each year investors pay income tax on the value of their net assets as at 1 January if and inasmuch as such net assets exceed the investor’s tax-free allowance. Any amount invested in the fund forms part of the investor's net assets. Private investors who are resident outside the Netherlands will not be taxed in the Netherlands on their investments in the fund. However, such investors may be taxed in their country of residence on any income from an investment in this fund based on the applicable national fiscal laws. Other fiscal rules apply to legal entities or professional investors. We advise 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 AC Asia ex Japan Index (Net Return, EUR).

In November, Asian markets declined by 3.3%, underperforming versus the world index by 6.9%. The most significant market-impacting event was President Trump's win, leading to equity market retreats, currency depreciation, and capital outflows in Asia. Singapore's market rose by 8% due to positive earnings reports. China decreased by 4.4% following unsatisfactory specifics from the National People's Congress and concerns over possible tariff increases on Chinese exports. Taiwan fell by 4.6% due to worries about slower growth and a correction in the semiconductor sector. South Korea, the worst-performing market year-to-date in Asia, declined by 6%, largely due to issues in the IT sector, despite Samsung Electronics announcing a new value-up plan. India, with a modest decline of 0.4%, fared better than its regional peers as it was relatively less impacted by trade tensions. ASEAN markets generally experienced pressure and recorded broad negative returns. On the policy front, the Bank of Korea cut the interest rate by 25 basis points in response to downward GDP growth pressures, while central banks in India, Indonesia, Malaysia, and Thailand maintained steady rates.

Based on transaction prices, the fund's return was -1.47%. The portfolio underperformed its benchmark driven by stock selection and country allocation. Stock picks worked well in Vietnam and Hong Kong, but detracted in China and India. In terms of sectors, low weight in materials contributed positively but selection in financials detracted. On the positive side, South Korean telecom company KT Corp delivered a convincing value-up plan and saw its share price respond positively. Vietnam IT services and telecommunication company FPT Corp rallied on positive AI sentiment. Indian IT services company HCL Technologies held up well as a defensive exposure in India as the market weakened in November. Conversely, SK hynix's share price was weak on further Chinese sanction fears from the Biden government. Its value-up plan only promised shareholder return focus post-2027, failing to excite investors. Alibaba has reversed its gains from September, due to a downturn in the China market. Mahanagar Gas was hit by yet another unexpected government reallocation of domestic gas quota in three weeks.

Global markets reacted strongly following Trump's election victory, quickly factoring in a bearish outlook for emerging Asia. Although inflation and higher interest rates in the US seem likely based on interpretations of Trump's tariff policies, it is important to remember his emphasis on 'the art of the deal' and mentions of lower interest rates during his presidential campaign. With policy uncertainties in the US and geopolitical conflicts, increased market volatility can be expected as politics may become less predictable than economics. In the event of heightened trade tensions, additional stimulus in the region is probable. If the base market scenario holds, with inflation decreasing and interest rates lowering, growth is expected to be sustained. This could provide a favorable environment for Asia. We have taken some profits on China and our focus is more on the stock selection at this juncture. India has come off in the last three months, as issuance increased and demand softened, though local investors remain active despite international selling.