ROBECO EMERGING MARKETS*
A pioneering approach with a long-term track record...
Robeco has been investing in emerging markets for more than 75 years, beginning with our first investment in Peru in 1930 - just one year after the company was founded.Today, Robeco offers several emerging markets strategies and is one of the few asset managers in the world able to boast a fund dating back more than 15 years. Robeco's Emerging Markets teams manage both fundamental-driven emerging markets strategies, as well as a quantitative emerging markets strategy that uses a proprietary stock selection model. The strategies are based on Robeco's pioneering research that demonstrates that proven stock selection variables for developed markets work equally well in emerging markets. This model has been implemented in the investment process of our fundamentally managed Emerging Markets Equities portfolios since December 2000, serving as a complementary input for stock selection. Its strong track record resulted in the introduction of a pure quantitative emerging markets strategy in December 2006.
- Fundamental Emerging Markets Equities
- Quantitative Emerging Markets Equities
Two Key Steps
Disciplined Investment Process
- Quality check on the output of the quantitative model
Model Portfolio Construction
- Maximize potential return by optimizing active weights in top and bottom ranked stocks
- Limit turnover
- Mitigate risk factors
- Check portfolio guideline
- Check ex-ante tracking error
- Continuous monitoring by portfolio management team
Our fundamental Emerging Markets Equity portfolio is managed according to a disciplined, transparent investment process, driven by in-depth analysis of top-down factors. A strong distinguishing feature is our proprietary country allocation framework, which has been able to add positively to performance. In addition, bottom-up stock selection is based on a distinctive blend of fundamental and quantitative research. Our proprietary stock selection model has been an integral part of the investment process since 2001.
Management discussions, catalyst identification and valuation analysis complete the investment process. We buy when securities have met our investment criteria; show upside potential that significantly outweighs downside risk; and reach our target price, which is generally two to three standard deviations below our estimate of fair value.
Robeco's competitive strengths in Emerging Markets equities can be characterized by:
- Proven top down country allocation
- Effective bottom up security selection
- A return/risk profile that focuses on consistency of results
These elements have contributed to our consistent long-term track record.
Robeco's quantitative, stock based approach is rooted in our strong belief in behavioral finance. It systematically identifies and exploits market inefficiencies, which arise as a result of predictable patterns in investor behavior. The strategies are all managed according to a distinguished investment approach. It combines the outcome of our stock selection model for emerging markets with a disciplined proprietary portfolio construction algorithm and a precise set of risk controls.
The competitive strengths of the Quantitative Emerging Markets Equities strategy include:
- An experienced team in an organization committed to quant and emerging markets.
- Robust stock selection model using proprietary and proven variables.
- Integrated risk approach with market risk analysis used in stock selection.
* Advisory services for the Robeco Global Emerging Markets Equity Strategies are offered by Robeco Institutional Asset Management US, Inc. ("RIAM-US"), an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. RIAM-US is a wholly owned subsidiary of the Robeco Group. In connection with providing investment advisory services to its clients, RIAM will utilize the services of certain personnel of Robeco Institutional Asset Management, B.V. ("RAM"), a business unit of Robeco Group, and Robeco Investment Management, Inc. ("RIM") a wholly owned subsidiary of Robeco Group.