Robeco has introduced its Emerging Markets ex-China Equities strategy – an Article 8 fund which allows investors to “calibrate their China exposure separately”.
Launching a strategy offering “a more balanced exposure to the emerging market opportunity” came amid China’s market dominance in emerging markets portfolios, coupled with geopolitical and regulatory considerations that could influence performance.
China is simply not worth the risk for public equity investors
The Netherlands-headquartered asset manager added that the actively managed strategy aims to facilitate exposure to smaller emerging market economies typically underrepresented in major indices, including Korea, Taiwan and Brazil.
The fund invests in over 1,100 companies, with a focus on high-growth sectors such as fintech and semiconductors, crafting a diversified portfolio of 60 to 80 stocks. Employing a value-oriented strategy, it aims to appeal to valuations and potential earnings growth, utilising both fundamental and quantitative research methods to outperform the index.
European, Asian stock dips over China’s growth worries
Wim-Hein Pals, head of emerging markets equities at Robeco, commented: “We are launching this fund to offer clients and prospects a more balanced exposure to the EM opportunity given China’s dominance in the EM index.
Given that emerging economies are growing faster than developed countries and have stronger balance sheets for governments, companies and households, we believe rebalancing may be overdue as investors globally are underexposed to EM ex-China.”
