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.
The strategy consists of portfolio of 60-80 stocks, targeting attractive valuations with potential earnings upside.
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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 article first appeared on our sister publication, Portfolio Adviser
