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Robeco launches Emerging Markets ex-China Equities fund

By eschewing China, the fund will allow investors to gain exposure to smaller emerging markets such as Korea, Taiwan and Brazil.
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Robeco has launched an Article 8 emerging markets ex-China equities fund.

The firm said that, given China’s market size in the emerging market space, the fund enables investors to manage their China exposure separately while gaining exposure to smaller EMs such as such as Korea, Taiwan and Brazil.

The strategy consists of portfolio of 60 to 80 stocks out of universe of more than 1,100 companies, and targets attractive valuations with potential earnings upside. It uses both fundamental and quantitative research methods to try to outperform the index.

Wim-Hein Pals, head of emerging markets equities at Robeco said: “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.”

This story first appeared on our sister publication, Portfolio Adviser.

Part of the Mark Allen Group.