Robeco Afrika Fonds N.V. · 2.20 2.00 Total net assets 5 15 16 44 55 50 Robeco Afrika Fonds - EUR G...

Robeco Afrika Fonds N.V.

Investment company with variable capital incorporated under Dutch law

Undertaking for Collective Investment in Transferable Securities

Chamber of Commerce 24432814

Annual report 2015

Robeco Afrika Fonds N.V. 2

Contents

General Information 4

Key figures per share class 6

Report by the board 7

General introduction 7

Investment policy 9

Investment results 11

Executive remuneration 12

Risk management 12

Movements in net assets 12

Sustainability investing 12

Statement of operational management 14

Fund Governance 14

Annual financial statements 16

Balance sheet 16

Profit and loss account 17

Cash flow statement 17

Notes 18

General 18

Risk management 18

Risks relating to financial instruments 19

Accounting principles 23

Principles for determining the result 23

Allocation to share classes 23

Notes to the balance sheet 24

Notes to the profit and loss account 28

Currency table 31

List of securities 32

Other data 35

Profit appropriation 35

Special controlling rights in accordance with the Articles of Association 35

Directors’ interests 35

Statement of the independent auditor 36


Robeco Afrika Fonds N.V.

(investment company with variable capital, having its registered office in Rotterdam, the Netherlands)

Contact details

Dave H. Cross (company secretary) (up to 1 October 2015)

Stefan Gordijn (company secretary) (from 1 October 2015)

Coolsingel 120 (with effect from May 2016: Weena 850)

Postbus 973

NL-3000 AZ Rotterdam

Tel. +31- 10 - 224 12 24

Fax +31 - 10 - 411 52 88

Internet: www.robeco.com

Management Board (and manager)

Robeco Institutional Asset Management B.V. (“RIAM”)

Management Board members:

Leni M.T. Boeren

Hester W.D.G. Borrie

Hans A.A. Rademaker

Roland Toppen (from 7 March 2016)

Fund manager

Cornelis E. Vlooswijk

Fund agent and paying agent

Rabobank International

Europalaan 44

NL-3526 KS Utrecht

Independent auditor

KPMG Accountants N.V.

Laan van Langerhuize 1

NL-1186 DS Amstelveen


General Information

Legal aspects

Robeco Afrika Fonds N.V. (the 'fund') is an investment company with variable capital established in the Netherlands.

The fund is an Undertaking for Collective Investment in Transferable Securities (UCITS) within the meaning of the

Council Directive for Investment Institutions dated 13 July 2009 (Directive 2009/65/EG, ‘UCITS IV’). UCITS have to

comply with certain restrictions to their investment policy in order to protect investors. The UCITS V directive (Directive

2014/91/EU) comes into force with effect from 18 March 2016.

Amendment of settlement of orders to T+2 As of 14 April 2015, the settlement of orders in all the fund's share classes has been amended from three to two

trading days.

Share classes

The ordinary shares are divided into two series, both of which are open. Each series is designated as a share class. The

series include the following share classes:

Share class A: Robeco Afrika Fonds

Share class B: Robeco Afrika Fonds - EUR G (opened for trading per 3 October 2013).

The management fee for the Robeco Afrika Fonds - EUR G share class (without distribution fee) is lower than for the

Robeco Afrika Fonds share class.

Allocation to share classes

The fund is managed in such a way that the allocation of results to the different share classes occurs proportionately on

a daily basis. Issue and repurchase of own shares are registered per share class. The differences between the various

share classes are explained in notes 9, 11 and 14 in the financial statements.

Tax features

On the basis of Section 28 of the Dutch Corporate Income Tax Act, the fund has the status of a fiscal investment

company. This means that no corporate-income tax is due, providing that, after deducting 15% in Dutch dividend tax,

the fund makes its profit available for distribution to shareholders in the form of dividend within eight months of the

close of the financial year and satisfies any other relevant regulations.

Liquidity of ordinary shares The fund is an open-end investment company, meaning that, barring exceptional circumstances, it issues and

repurchases its shares on a daily basis at prices approximating net asset value, augmented or reduced by a limited

surcharge or discount. The only purpose of this surcharge or discount is to cover the costs made by the fund related to

the entry and exit of investors. The maximum current surcharge or discount is 1.00%. Surcharges and discounts will be

offset directly against the fund assets.

The Robeco Afrika Fonds and the Robeco Afrika Fonds - EUR G share class are listed on Euronext Amsterdam1, Euronext

Fund Service segment.

Key investor information and prospectus

A prospectus and Key-Investor-Information document with information on the fund, the costs and the risks are available

for Robeco Afrika Fonds N.V. Both documents can be obtained free of charge from the fund offices or via

www.robeco.com.

1 Depending on the distributor, investments can be made in Robeco Afrika Fonds of Robeco Afrika Fonds - EUR G.


Information for investors in the respective countries The information below applies only to investors in the respective countries.

Representative and paying agent in Germany

State Street Bank GmbH - Frankfurt Branch (Agent Fund Trading), Solmsstrasse 83, D-60486 Frankfurt am Main is

assigned as paying agent in Germany. The information address for Germany is Robeco Deutschland, Taunusanlage 17,

D-60325 Frankfurt am Main. The prospectus, the Articles of Association and the annual/semi-annual reports may be

obtained free of charge from the information address. The prices at which shares are bought and sold are published on

www.robeco.de.

Financial services in Belgium

CACEIS Belgium N.V., Havenstraat 86C Bus 320, 1000 Brussels, has been appointed as financial-services provider in

Belgium. The most recent periodic reports, the prospectus and the Key Investor Information and other information

about the fund are available from them in Dutch and English.

Translations

The original financial statements were drafted in Dutch. This document is an English translation of the original. In the

case of any discrepancies between the English and the Dutch text, the latter will prevail. This report is also published in

Dutch. Only the original Dutch edition is binding and will be submitted to the General Meeting of Shareholders.


Key figures per share class

Overview 2011-2015

Robeco Afrika Fonds

2015

2014

2013

2012

2011

Average

Performance in % based on:

- Market price 1,2

–18.1

5.1

6.8

25.6

–26.1

–3.1

- Net asset value 1,2

–17.3

4.4

7.7

24.7

–23.7

–2.4

50% MSCI EFM Africa ex South Africa (Net Return) + 50% MSCI South Africa (Net Return) 3

–13.0

14.7

1.7

28.1

–19.7

0.9

Dividend in EUR 4

3.00

4.00

1.60

2.20

2.00

Total net assets 5

15

16

44

55

50

Robeco Afrika Fonds - EUR G 2015 2014 2013 6

Average

Performance in % based on:

- Market price 1,2

–17.4

6.1

2.7

–4.6

- Net asset value 1,2

–16.5

5.3

4.8

–3.6

50% MSCI EFM Africa ex South Africa (Net Return) + 50% MSCI South Africa (Net Return) 3

–13.0

14.7

Dividend in EUR 4

3.40

3.00

1.40

Total net assets 5

33

45

15

1 Possible differences between the performance based on market price and on net asset value are caused by the fact that the last market price of the reporting period and the net asset value are determined at different times. The last market price of the reporting period is the price on the last market day of the respective reporting period based on the valuation data available at 06:00h. The net asset value is based on the valuation figures from the close of trading on that same day.

2 Any dividend payments that are distributed in any year are assumed to have been reinvested in the fund.

3 This concerns a reference index.

4 The dividend relates to the reporting year mentioned and is distributed in the following year. Proposed for 2015. Further information on the proposed dividend can be found in the section Proposed profit appropriation on page 31.

5 EUR x millions.

6 Concerns the period 3 October 2013 through 31 December 2013.


Report by the board

General introduction

Economy

In 2015 the global economy was characterized by slow economic growth. Global GDP growth of just 2.6% meant that

the economic recovery in 2015 was not convincing. Although the United States, with the Eurozone in its wake,

managed to continue on its path of improved economic activity, there was a sharp decline in the pace of growth in

emerging markets. The widely anticipated first US rate hike in nine years became a reality thanks to a solid recovery in

the labor market. The strong dollar, slower growth in China, low commodity prices and weakening global economy

characterized the macroeconomic climate.

There was a clear acceleration in economic activity in the Eurozone in 2015. Business and consumer confidence picked

up gradually, aided by low oil prices, an improvement in international competitiveness and an improvement in real

purchasing power. The relaxed monetary policy of the ECB, which initiated a bond-buying program worth EUR 60 billion

a month in January, contributed to this by causing a sharp depreciation of the euro. The sustained decline in the price

of oil (and other commodities) strengthened the disinflationary trend in the Eurozone and forced the ECB to take this

unconventional step. The ECB also lowered its deposit rate in the course of the year to –0.30% for commercial bank

deposits. And the EU rules on budget deficit levels were stretched in response to the refugee crisis and terrorism.

Reforms on the supply side of the economy remained relatively limited, despite evidence of favorable developments in

the periphery.

The strong recovery of the US labor market gave the Fed the opportunity to return to conventional monetary policy,

with an initial rate hike of +0.25%. The strong dollar had prevented an earlier rate hike. Increasing house prices,

moderate wage growth and higher real purchasing power caused by lower fuel prices boosted consumer spending.

Continuing low inflation and hidden unemployment meant that only a moderate tightening of monetary policy was

possible for the time being. The energy sector in the US suffered from the strong decline in oil prices that continued the

downward trend that started in 2014.

The rate of economic growth in Japan remained stuck at 0.48%. Japanese Prime Minister Shinzo Abe's economic-

reform program had still not succeeded in bolstering the propensity to invest and push up wages for workers.

Nevertheless core inflation picked up and the weaker yen has vastly improved the profitability of Japanese companies.

Better-than-expected tax income contributed to the health of the government's finances, but its high debt ratio was still

a challenge. The reform program also relied fairly exclusively on quantitative easing by the Japanese central bank.

With GDP growth of 6.9%, the Chinese economy did not quite meet the Chinese policymakers' 7% target. The policy of

the Chinese policymakers was far from transparent, with an unexpected devaluation of the renminbi that caused unrest

on the global financial markets in August. Chinese policymakers attempted to strike a delicate balance between a

controlled dampening down of the overheated sectors and the introduction of a relatively high 6.5% target for the

years ahead. A tough stand on corruption brought a halt to excessive lending and also led to less demand for

commodities, while also causing investment levels to shrink. The authorities tried to prevent a sharp decline in growth

and had more than enough buffers in place to absorb the fallout from bankruptcies.

Movements in the commodities markets once again played a pivotal role in global economic developments. The

strategy of OPEC to win market share to the detriment of producers with higher production costs added to the supply

surplus in the oil market in 2015. Oil producers in the US proved resilient due to an unexpectedly sharp reduction in the

production costs, which helped keep oil production stable. The disappointing demand for oil caused by the slowdown in

growth in China and other emerging markets put further pressure on prices. At the end of 2015 a barrel of oil cost 37

US dollars. There was a clear wealth shift from oil-producing countries to net-oil importers.

Outlook for the equity markets

2015 was marked by a return of volatility to the global equity markets, with a total return of 8.8% for the MSCI World

All Countries Index in euro terms, close to the historical average returns for equity markets. The main contributors to

this performance were the developed equity markets and in particular an appreciation of the US dollar relative to the


euro. As in previous years, emerging markets lagged developed markets with an absolute return of –5.2% in euro

terms.

From a multi-asset perspective, the outlook for equities remains favorable. Nonetheless we expect below-average

returns for this asset class in 2016. After years of double-digit returns, equities find themselves in the late phase of a

long-term rally and investors will need to exercise greater caution now that price-earnings ratios have risen to higher

levels. Differences in monetary policy, below-average economic growth and a further fall from historically high profit

margins in the US are all factors that could put the brakes on further price increases. Although stock-price gains are

likely to contribute less to overall equity returns, we expect global corporate earnings to continue to grow, with the best

potential in the Eurozone, with expected earnings growth of around 10%. A lower interest burden, as yet moderate

wage growth, increased bank lending, low energy prices, less fiscally restrictive governments and a relatively favorable

exchange rate will all contribute to this.

Outlook for Africa

The prospects for 2016 vary per African country. South Africa is at risk of losing its investment grade status at Standard

& Poor's and other credit rating agencies. The national debt has risen to nearly 50% of the Gross Domestic Product

(GDP) since the financial crisis. Therefore, a disciplined budget policy is required; however, investor confidence in this

area has declined since the sudden replacement of the Minister of Finance in December 2015. The central bank will

probably implement a number of small interest rate hikes to keep inflation under control. The dry weather conditions

will have a negative impact on agricultural production. The high unemployment rate will remain a problem for the long

term as, in general, wages are too high relative to productivity. There are some positive signs in other areas. For

instance, the trade deficit has decreased and as the currency has weakened, this trend could continue. The electricity

shortage will also probably have less of a negative impact. Capacity has been increased somewhat and both businesses

and consumers have become better at dealing with the situation. All in all, we expect the South African economy to

only grow by about 1%.

With regard to the political situation, Nigeria managed to make it through 2015 quite well. The security situation

appears to have improved as a result of military successes against terrorist group Boko Haram. However, it will still be a

challenging year for the economy due to the low oil price. The Nigerian government is unable to increase its

expenditure due to lower income from oil extraction. The government and the central bank are also struggling with the

exchange rate. As the exchange rate is expected to weaken as a consequence of the drop in oil prices in the second half

of 2015. Policy makers have chosen to keep the exchange rate stable. However, this does not appear to be tenable if

the oil price does not rise strongly. This makes doing business very difficult for many Nigerian companies and thus has a

negative effect on economic growth. Investors are also adopting a wait-and-see attitude. We expect the Nigerian naira

to weaken considerably, but as this occurs, the prices of Nigerian equities will probably go up.

The Kenyan economy will probably continue to grow strongly due to the large infrastructural projects that are being

carried out. Agriculture and industry are also doing well. We do not expect the tourist sector to show a strong recovery

in the near future. Kenya has large deficits on it government budget and balance of payments. However, development

banks and international investors are apparently still willing to finance these deficits as these are largely due to large

infrastructure projects.

Egypt is no longer popular with European tourist and thus an important source of hard currency has dried up, at least

temporarily. Nevertheless, the Egyptian economy is expected to still be able to grow by 3-4% due to the execution of

large investment projects. The low oil price is actually favorable for Egypt, but it will probably have a negative impact on

financial support from allies such as Saudi Arabia, the Untied Arab Emirates and Kuwait.

Government finance have been brought back under control in Ghana following an agreement with the International

Monetary Fund (IMF). The exchange rate has also stabilized after three years of significant weakening. We expect

inflation to decrease this year and we expect the interest rate to also go down as a result. This will then provide an

impulse for growth. Parliamentary and presidential elections will be held at the end of 2016. In view of the IMF's

involvement, we do not expect these elections to lead to a lot of extra government spending as in previous election

years.

Economic growth slowed down somewhat in Botswana in 2015, but fortunately Botswana has a low national debt and

thus there is room for fiscal stimulus measures. The government has announced a fiscal stimulus plan directed at


tourism, agriculture, industry and the construction sector. The creation of jobs is also an important objective. We expect

growth to increase to over 3%.

Zambia will be having another difficult year if the copper price remains low. The lower copper price leads to a lower

inflow of hard currency, lower government income and fewer jobs. It has already led to a considerable weakening of

the currency and rise in inflation, as a result of which the central bank had to raise interest rates substantially. Only an

increase in the copper price will be able to really improve Zambia's prospects in the short term.

Investment policy

Introduction

Traditional problems in Africa, such as the poor business climate, political instability and low productivity growth are

gradually disappearing. Laws and regulations have been further defined and levels of compliance are improving, which

are important preconditions for long-term investment. Economic growth is high and expectations are positive.

Valuations on the other hand are lower than in developed markets.

The fund will be able to benefit from Robeco Group’s extensive expertise and experience in the various sectors and

countries in which investments are made. In general, investments will be made in listed shares, although the fund may

invest up to 10% of its total assets in unlisted shares.

Investment objective

The objective of the fund is to give investors access to shares of companies that are based on the African continent or

that realize the majority of their sales and/or earnings in this region. The fund's reference index is composed of 50%

MSCI EFM Africa ex South Africa (Net Return) + 50% MSCI South Africa (Net Return).

Implementation of the investment policy

In 2015, the Robeco Afrika Fonds N.V. invested in companies domiciled on the African continent or that realize the

majority of their sales and/or earnings in this region. Country allocation is the first step in this investment policy.

Subsequently, the most attractive stocks are selected in each country. Country allocation takes place on the basis of an

analysis of the macro-economic and political variables. In addition, stock-market valuation, expected earnings growth

and available liquidity are also taken into account. The attractiveness of individual stocks is determined on the basis of

a fundamental analysis of the company and the valuation of the shares.

The policy to keep trading volumes low, which has been implemented since the fund's inception, was continued in

2015 in view of the high transaction costs. The daily inflows/outflows are used to reposition the portfolio. However, we

only made minor and limited changes in 2015.

With a wide spectrum of companies, suitable liquidity on the market and low transaction costs, South Africa is still the

biggest country in the portfolio. The weighting increased in January from 46% to 48% as a result of the relatively good

performance of South Africa. However, after that, the weighting decreased gradually following a number of changes in

the portfolio and due to the fact that South Africa remained behind in comparison to the African average. The

weighting of South Africa was nearly 42% at the end of December. The fund continues to be underweight relative to

the reference index. The main reason for this underweight position was the relatively high valuation of South African

stocks combined with the lower growth potential compared to other African countries. This underweight position

resulted in small positive contribution to the relative performance. The positive contribution was limited due to the fact

that the reference index is rebalanced every month and profited from the changing outperformance and

underperformance of South Africa. The stock selection in South Africa was very good and provided a significant positive

contribution.

In Nigeria, the fund mainly invested in the banking sector, with exposure spread across ten large- and medium-sized

banks. In addition, the fund holds positions in cement producers and food companies. Nigeria's weighting in the

portfolio was nearly 15% at the end of the year, which was almost the same as the weighting at the beginning of the

year. In the first few months of the year, the weighting decreased to 13%. However, after the presidential elections

went smoothly, the weighting increased considerably only to decrease again later in the year following a new drop in

the oil price and disappointment among investors about the new government's lack of action in its first months. Nigeria

was the second largest country in our portfolio throughout the year, but it was still underweight relative to the

reference index. The underweight position had a slightly negative effect as Nigeria did not perform quite as badly as the


African average. The positioning with many banks, instead of defensive producers of food products and beer in the

reference index, also resulted in a slight underperformance.

In Egypt, the fund invests in a diversified portfolio of banks, a real estate developer, a telecom company, a poultry

producer and other companies. The fund continued to be underweight relative to the reference index during the year.

The political situation remained stable throughout the year, but we feel that the risks remain high because a large part

of the population is not participating in the democratic process. The announcement, and in some cases already the

commencement, of a number of large investment projects financed by foreign investors was positive. The discovery of a

huge gas field ensures that Egypt will have cheap gas and income in the coming years. With a negative return of 15%,

the Egyptian stock exchange performed in line with the average of the other African stock exchanges. The weighting in

our portfolio remained stable at around 8%. The underweight position relative to the reference index had hardly any

effect on the relative performance. The stock selection in Egypt contributed negatively due to an underweight position

in the largest bank that performed better than the market average. However, participating in stock-market flotations of

Egyptian companies did contribute positively on balance.

Kenya's weighting in the portfolio rose from 8.2% to 9.3% in 2015. This was partially because Kenya performed slightly

better than most other African stock markets. During the year the fund was slightly overweight and this made a positive

contribution to relative performance. Stock selection made a marginally negative contribution to relative performance.

In Ghana, the fund was invested in banks and in beer and dairy producers. Ghana experienced a volatile year and

ultimately lagged the African average. Ghana's weighting decreased from 6.0% to 5.9%. As Ghana is not in the

reference index, the Ghanaian stocks made a slightly negative contribution to relative performance.

Botswana was the best-performing country with a positive return of 6.7% in euros. The weighting in the portfolio

increased from 3.2% to 4.5%. Botswana is not part of the reference index and therefore our positions in financial

service providers and a supermarket chain made a positive contribution to the relative performance.

We expanded our portfolio slightly in Morocco by participation in the stock-market flotation of Total Maroc and also

due to this, the country weighting has increased from 1.5% to 2.2%. Consequently, the fund has been considerably

underweight relative to the reference index. This had a negative impact on the relative performance as the Moroccan

stock market, with a negative return of 3%, performed relatively well. Stock selection in Morocco had a slight positive

effect on the relative performance.

It was a very bad year for the Zambian stock market with a negative return of 35.5%, mainly due to the currency's slide

as a consequence of the strong drop in the copper price. We expanded our position in a meat producer during the year.

However, due to the fall in stock prices, the country weighting remained approximately the same at around 3%.

Zambia is not part of the reference index and therefore made a strongly negative contribution to the absolute and

relative performance of the fund.

Our investments in Mauritius had a neutral effect on the relative performance.

Our investment position in Tunisia was neutral with regard to country allocation, but our holdings performed better

than the market average and the stock selection was thus positive.

Geographically, the portfolio was further diversified following the inclusion of a Senegalese telecom company that is

listed on the regional stock exchange BRVM, which is located in Ivory Coast. The investment contributed positively to

the relative performance.

Our positions in companies active on the African continent but listed in Australia, Canada, Portugal and the United

Kingdom already had a much lower weighting than a few years ago due to the drop in stock prices. However, these

stocks had a negative impact again on the fund's absolute and relative performance in 2015 (these stocks do not, by

definition, form part of the reference index). This was mainly due to price decreases of oil, copper and gold.

Currency policy

An active currency policy is pursued with the euro as base currency. The fund may use forward exchange transactions to

adjust these currency weights. Management of currency risks is part of the fund’s total risk management. For further

quantitative information on the currency risk we refer to the information on currency risk provided on page 20.


Investment results

Investment result per share class

Price in EUR x 1

Price in EUR x 1

Dividend paid

Investment result

Share class

31/12/2015

31/12/2014

May 2015 1

reporting period in % 2

Robeco Afrika Fonds

4.00

- Market price

104.30

130.98

–18.1

- Net asset value

106.76

132.67

–17.3

Robeco Afrika Fonds - EUR G

–3.00

- Market price

86.59

107.52

–17.4

- Net asset value

88.63

108.91

–16.5

1 Ex-date.

2 Any dividend payments that are distributed in any year are assumed to have been reinvested in the fund.

Net returns per share 1

EUR x 1

Robeco Afrika Fonds

2015

2014

2013

2012

2011

Investment income

4.91

5.07

4.40

4.42

3.56

Change in value

–24.99

2.12

7.70

22.63

–36.64

Management costs, service fee and other costs

–2.66

–2.72

–2.49

–2.35

–2.27

Net result

–22.74

4.47

9.61

24.70

–35.35

Robeco Afrika Fonds - EUR G

2015

2014

2013 2

Investment income

4.18

4.33

0.38

Change in value

–19.98

2.52

–0.74

Management costs, service fee and other costs

–1.27

–1.29

–0.32

Net result

–17.07

5.56

–0.68

1 Based on the average amount of shares outstanding during the reporting year. The average number of shares is calculated on a daily basis.

2 Concerns the period from 3 October through 31 December 2013.

Robeco Afrika Fonds N.V. does not use an index as a benchmark. Compared to the reference index, which is comprised

of 50% MSCI South Africa and 50% MSCI EFM Africa, excluding South Africa, with monthly re-balancing, both share

classes in the fund underperformed the reference index by 2.6% (based on the gross return). Based on the net return

(after management fees), the Robeco Afrika Fonds underperformed the reference index by 4.3% and Robeco Afrika

Fonds - EUR G underperformed the reference index by 3.5%. The most important reasons for this were the weakening

of the currency in Zambia, the underweight position in the relatively well performing Morocco and the overweight

position in mining companies, which were negatively impacted by strongly declining commodity prices.

Return and risk

While the investment result is important, so is portfolio risk management. As far as the concentration risk is concerned,

the fund adheres to the UCITS guidelines, which prescribe that an individual stock may not structurally comprise more

than 10% of the fund and that the largest ten positions may not together represent more than 40% of the portfolio. In

addition, the fund managers aim to diversify the country weightings over many African countries, insofar as this is

possible by investing in stocks that are considered attractive. Robeco Afrika Fonds is more geographically diversified

than most other Africa funds. The individual share risk is also smaller, as the fund strives for a portfolio with 100 to 120

individual stocks. This is a lot more than most other Africa funds and, therefore, the probability that the fund will be hit

hard by a negative development on a company-level is relatively small. Finally, the fund managers take the liquidity of

the portfolio into account so that positions can be sold or reduced easily and without high costs in the event of

considerable withdrawals from the fund. Since its inception in June 2008, the fund has never experienced difficulties in

generating sufficient cash for large withdrawals. This is because a large part of the portfolio is invested in South Africa


and the United Kingdom (via, among others, depositary receipts of Egyptian and Nigerian stocks), whereas also the

Egyptian, Kenyan and Nigerian stock exchanges usually show a good liquidity.

The beta of the portfolio compared with the reference index amounted to 0.99 in 2015 and 0.89 over the last three

years. In general, it is the case that a portfolio with a beta of less than 1 goes up less than the market in a rising market

and goes down less than the market in a declining market. The level of beta is not a target in itself, but a result of

portfolio stock selection. The fund has a very long investment horizon (more than five years). We buy shares that we

expect will outperform the market in the long term. In order to keep transaction costs low, the fund mainly uses the

inflow and outflow of the fund to re-position the portfolio.

Executive remuneration

A description of the remuneration policy for fund executives can be found in the information on remuneration policy on

page 30.

Risk management

A description of risk management regarding financial instruments can be found in the information on the annual

financial statements on pages 18 through 22.

Movements in net assets

During the reporting period the assets of the Robeco fund fell by EUR 12 million to EUR 48 million. This decline can be

explained by the following items. On balance, stocks to the amount of EUR 1 million were bought. The withdrawal of

the net result decreased these assets by EUR 9 million. A total of EUR 2 million was paid out in dividend.

Survey of movements in net assets

EUR x thousand

2015

2014

Assets at opening date

60,268

58,508

Company shares issued

12,435

48,977

Company shares repurchased

–13,571

–49,285

Situation on closing date

59,132

58,200

Direct investment income

2,202

2,439

Costs

–806

–897

Indirect investment income

–10,711

1,303

Net result

–9,315

2,845

Dividend payments

–1,598

–777

Assets at closing date

48,219

60,268

Sustainability investing The sustainability investing carried out by funds at Robeco is implemented with minimum restrictions to the investment

universe, and consists of a combination of effective measures:

• exercising voting rights

• engagement

• exclusions

• integration of ESG factors1 into the investment processes.

Exercising voting rights

The manager aims to exercise voting rights on shares held by the fund throughout the world. The manager is convinced

that effective corporate governance will be beneficial to shareholder value in the longer term. The corporate-

governance policy of the manager is based on the internationally accepted principles of the International Corporate

Governance Network (ICGN). The manager is of the opinion that local legislation and codes for corporate governance,

1 ESG stands for Environmental, Social and Governance.


such as the Corporate Governance Code in the Netherlands, should be guiding principles for corporate-governance

practice and voting behavior. This approach is in line with the ICGN Global Corporate Governance Principles.

The ICGN Global Corporate Governance Principles are guidelines for shareholders and listed companies on different

corporate governance topics such as the composition of the board of listed companies, independent supervision of the

day-to-day management, an effective remuneration policy, rights for shareholders and the company's management

board. The aim of Robeco's voting policy is to improve the corporate governance of its investments. Common agenda

items at shareholder meetings concern the appointment of new management or supervisory board members, approval

for share issues and the approval of remuneration policy.

Some proposals such as those made by shareholders or about mergers and takeovers can differ greatly in form and

content. The way in which Robeco votes on such agenda items is different for each specific proposal. International basic

principles from the Principles for Responsible Investing and the International Corporate Governance Network for

example, also offer support for such specific analyses. The manager puts the wider interests of the investors first.

In 2015, the manager voted at 1,049 meetings on behalf of (Dutch) funds managed by RIAM. In 60% of these

meetings the manager's vote was different from the company board's proposal on at least one agenda item.

Engagement

Engagement is the active use of the rights of investors to influence how companies are managed. Robeco enters into

active dialogue with companies on corporate social responsibility and CSR policies. In our opinion this will increase

shareholder value for the investors in the longer term. We use an integral approach, which combines the expertise of

our investment analysts, our sustainability investing research analysts and our engagement specialists. By using

financially material information as the basis for our talks, we strive to ensure that our dialogue introduces added value

and improves the risk/return profile of the company's stock. This enables us to generate value for both the investors

and the company.

Robeco uses two forms of engagement that differ in approach: The first is 'value engagement', which is aimed at

improving the sustainability profile of companies and thus also the quality of investments in those companies. Different

sustainability themes are discussed with companies based on the conviction that opportunities can be better used and

risks better mitigated by companies that pursue a sound sustainability policy. In 2015, constructive dialogs were

initiated on behalf of the RIAM-managed funds with listed companies on topics such as environmental challenges for

European electricity companies, ESG risks and opportunities in the bio-pharmaceutical industry and corporate

governance in Japan.

The second form of engagement is 'enhanced engagement', which focuses on companies that breach the UN Global

Compact. The UN Global Compact defines several universal principles with which organizations must comply. These

principles are of a general nature and focus on respecting human rights, good working conditions, combating

corruption and exercising due care for the environment. If a company structurally breaches one or more of these

principles, Robeco starts a dialogue with it. If after three years' of dialogue, a company makes insufficient progress in

eliminating or mitigating the breach, Robeco may decide to exclude the company from its investment universe.

Exclusions

Robeco's exclusion policy is based on three main exclusion criteria. Firstly, it excludes companies that are involved in

the production of controversial weapons or essential components for such weapons, or that derive income from the

sale or transport of these weapons. We base our policy of not investing in such companies on a legislative amendment

in the Netherlands governing investments in cluster-munition companies effective since 1 January 2013. Secondly,

there is a policy for excluding countries. Robeco considers any country that systematically violates the human rights of

its citizens to be controversial. These exclusions relate to investment-related sanctions that are imposed by the UN, US

or EU. Thirdly, an unsuccessful dialogue may in time lead to a company's exclusion from the investment universe. Such

a dialogue with a company concerns serious and systematic violations of widely accepted international directives on

good corporate governance. Robeco focuses in particular on the United Nations Global Compact. Robeco Group’s

Management Board has the final authority to exclude companies and countries. Robeco Institutional Asset

Management B.V. will apply this exclusion list in its capacity as manager. The exclusion list can be found on the Robeco

website.


Integration of ESG factors in investment processes

ESG factors are taken into consideration in the decision-making process both on a macro level and on a company level.

On a macro level, factors such as transparency, strengthening of democratic institutions, political stability and

protection of shareholders are assessed and taken into account in the positioning of a country in the portfolio.

On a company level, ESG is assessed in the fundamental analysis as a separate item, in addition to other factors such as

business analysis, earnings revisions, quantitative scores and valuation. Three sources are mainly used as input for the

ESG analysis. The Emerging Markets team carries out its own ESG analysis every other year. This analysis has been

performed since 2001 and was initially only directed at the Governance factor. This analysis was expanded in 2011 and

the Environmental and Social factors were also included. In addition, the sustainability scores of RobecoSAM and of

independent sustainability research agencies are also used. RobecoSAM has developed its own ESG score based on an

extensive list of sector-specific and business-specific factors. RobecoSAM has started to monitor more and more

companies in Africa and, as a result, the use of its ESG score has increased considerably.

Based on the ESG analysis, the decision can be taken to refrain from investing in a specific company. The results of the

ESG analysis are also used to determine the discount rate in the discounted cash-flow model that is used to determine

the value.

Statement of operational management Robeco Institutional Asset Management B.V. has a statement of operational management, which meets the

requirements of the Dutch Financial Supervision Act [Wet op het financieel toezicht, or 'Wft'] and the Dutch Market

Conduct Supervision of Financial Enterprises Decree [Besluit Gedragstoezicht financiële ondernemingen, or ‘BGfo’].

Activities

During the past financial year, we evaluated different aspects of corporate governance with the aid of a model with

three ‘lines of defense’ as described in the section on Risk management on page 19. In our assessment, we observed

nothing that would lead us to conclude that the description of the structural aspects of operational management within

the meaning of article 121 of the BGfo failed to meet the requirements as specified in the Wft and related regulations.

On the basis of this, we, as directors of Robeco Institutional Asset Management B.V., declare that we possess a

statement of operational management as defined in article 121 van het BGfo that meets the requirements of the BGfo.

Report on operational management

In our assessment we noted nothing that would lead us to conclude that operational management does not function as

described in this statement. We therefore declare with reasonable assurance that operational management has been

effective and has functioned as described throughout the reporting year.

Fund Governance Robeco has its own Principles on Fund Governance These principles largely correspond to the principles of the Dutch

Fund and Asset Management Association (DUFAS). The objective of the Principles is to give more detailed guidelines for

the organizational structure and working methods of fund managers or independent investment companies and to

provide guarantees for integrity in the fund's activities and ensure the careful provision of services. Group Compliance is

the Robeco department that ensures that the Principles are constantly monitored. Once every three years Robeco's

Group Internal Audit carries out an audit of the fund Governance as structured and implemented at Robeco, and of its

compliance with the DUFAS Principles on Fund Governance. The last audit was in July 2014. This text can be found on

the Robeco website.

In addition, one of the committees of the Robeco Group N.V. Supervisory Board (the Investment Committee) focuses

particularly on the funds managed by the Robeco Group as a whole. The meetings were attended by the members of

the Management Board of Robeco Group N.V., the board of RIAM and representatives from the investment

departments. The product range, the profitability of the products, the investment policy pursued and the fund

performance were all discussed. During these discussions, comparisons were also made between the performance and

the set performance targets and ratings, such as those of Morningstar.

The Audit & Risk Committee of the Robeco Group N.V. Supervisory Board discusses issues relating to compliance and

risk management, in the presence of members of the Robeco Group N.V. Management Board, the heads of Group

Internal Audit, Group Compliance and Group Risk Management and representatives from the independent auditor. In


these meetings various elements are covered including reported incidents and the measures taken to handle these,

and Group Compliance reports on active and passive breaches relating to investment guidelines if these have occurred.

Both committees are made up of seven members, six of whom are independent (from the shareholders). This ensures

that developments relating to Robeco Group funds are brought to the attention of the Supervisory Board that is

responsible for the supervision of the Robeco Group.

Rotterdam, 31 March 2016

The Management Board


Annual financial statements

Balance sheet Before profit appropriation, EUR x thousand

31/12/2015

31/12/2014

ASSETS

Investments

Financial investments

Equities 1

47,979

59,986

Total investments

47,979

59,986

Accounts receivable

Receivables on securities transactions 146

347

Dividends receivable 2

15

141

Other receivables 3

169

311

330

799

Other assets

Cash and cash equivalents 4

65

824

LIABILITIES

Accounts payable

Payable to credit institutions 5

59

871

Payable to affiliated parties 6

52

62

Other liabilities 7

44

408

155 1,341

Accounts receivable and other assets less accounts payable

240

282

Assets minus accounts payable 48,219

60,268

Composition of shareholders’ equity

Issued capital 8,9

516

528

Share-premium reserve 8

51,778

52,902

Other reserves 8

5,240

3,993

Undistributed earnings 8

–9,315

2,845

48,219 60,268

Net asset value Robeco Afrika Fonds per share

106.76 132.67

Net asset value Robeco Afrika Fonds - EUR G per share

88.63 108.91

The numbers of the items in the financial statements refer to the numbers in the Notes.


Profit and loss account EUR x thousand

2015

2014

Investment income 10

2,202

2,439

Changes in value 1

Unrealized profit

3,504

12,565

Unrealized losses –16,986

–11,716

Realized profit 4,762

3,958

Realized losses –1,991

–3,504

–8,509

3,742

Costs

Management costs 11

638

704

Service fee 11

69

74

Other costs 13

99

119

806

897

Net result

–9,315

2,845

Cash flow statement Indirect method, EUR x thousand

2015

2014

Cash flow from investment activities

Net result

–9,315

2,845

Unrealized changes in value 1

13,482

–849

Realized changes in value 1

–2,771

–454

Purchase of investments 1

–8,831

–11,528

Sale of investments 1

10,260

10,704

Increase (–)/decrease (+) accounts receivable 2,3,4

452

–471

Increase (+)/decrease (–) accounts payable 6.7

–36

–27

3,241

220

Cash flow from financing activities Received for shares subscribed

12,435

48,977

Paid for repurchase of own shares

–13,571

–49,285

Dividend payments

–1,598

–777

Increase (–)/decrease (+) accounts receivable 3

17

–8

Increase (+)/decrease (–) accounts payable 7

–338

18

–3,055

–1,075

Net cash flow

186

–855

Currency and cash revaluation –133

33

Increase (+)/decrease (–) cash

53

–822

Cash at opening date 4

824

2,091

Accounts payable to credit institutions at opening date 5

–871

–1,316

Total cash at opening date

–47

775

Cash at closing date 4

65

824

Accounts payable to credit institutions at closing date 5

–59

–871

Total cash at closing date

6

–47

The numbers of the items in the financial statements refer to the numbers in the Notes.


Notes

General The annual financial statements have been drawn up in conformity with Part 9, Book 2 of the Dutch Civil Code and the

Wft. The fund’s financial year is the same as the calendar year. The notes referring to fund shares concern ordinary

shares outstanding.

The ordinary shares are divided into two series, both of which are open. Each series is designated as a share class. The

series include the following share classes:

Share class A: Robeco Afrika Fonds

Share class B: Robeco Afrika Fonds - EUR G.

Risk management

Risks are inherent in asset management. Therefore it is very important to have a procedure for controlling these risks

embedded in the company's day-to-day operations. The manager (RIAM) ensures that risks are properly managed via

the three-lines-of-defense model: RIAM management (first line), Group Compliance and Group Risk Management

departments (second line) and Group Internal Audit department (third line).

Within RIAM, the management is primarily responsible for risk management – as part of its daily activities. The Group

Compliance and Group Risk Management departments develop and maintain policy, methods and systems that enable

management to fulfill its responsibilities in terms of risk control. These departments also monitor whether the

portfolios remain within the investment restrictions set out in the prospectus and whether they meet the internal

regulations. The Risk Management Committee makes decisions on the implementation of the risk management policy

and monitors whether risks remain within the set limits. The Group Internal Audit department carries out audits to

check the effectiveness of internal controls.

RIAM uses a risk-management and control framework that supports the effective control of all types of risk. Within this

framework, risks are periodically identified and assessed as to their significance and materiality. Internal procedures

and measures are focused on providing a structure to control both financial and operational risks. Control measures are

included in the framework for each type of risk. The implementation of procedures and measures within this framework

is actively monitored.

Operational risk

Operational risk is the risk of loss as a result of inadequate or failing processes, people or systems. Robeco constantly

seeks opportunities to simplify processes and reduce complexity in order to mitigate operational risks. Automation is an

important means of achieving this and to this end systems are used that can be regarded as the market standard for

financial institutions.

Compliance risk

Compliance risk is the risk of sanctions, financial loss or reputation damage as a result of non-compliance with internal

and external legislation and regulation applicable to the activities of Robeco. The markets in which Robeco is active are

strictly regulated and are under the supervision of the financial authorities. Robeco's compliance with all applicable

laws and regulations is in our clients’ interest. Robeco has implemented a meticulous process with clear responsibilities

in order to ensure that new legislation and regulation is reported and implemented in a timely fashion.

In 2015 further significant changes could be observed that could affect the Robeco funds. An important example of this

is the amendment of the European Investment Institution’s Directive for Collective Investment in Securities (UCITS

Directive). This amended directive, also referred to as UCITS V, will come into effect on 18 March 2016. In January

2015, a project group was set up at Robeco with the objective of ensuring that the company is completely compliant

with UCITS V by the time it becomes effective.

The two most important elements of UCITS V that will effect Robeco funds are:


1. Remuneration: The UCITS V includes 17 principles covering the remuneration policy of fund managers. These

principles correspond to a large extent with the existing principles for remuneration policies under the AIFM

Directive.

2. Custodian: Under UCITS V, far more stringent requirements will be placed on custodians. All banks and other

parties that have specifically received a license for this (including investment institutions) may act as

custodians. Detailed conditions have been drawn up with which the custodian must comply when

implementing its custodial tasks. Experience with the AIFM Directive, where a similar provision applies, has

shown that regulators can be critical about the content of these custodial agreements. Furthermore, under

the UCITS V strict conditions are placed on the outsourcing of activities by the custodian and the related

responsibility and liability.

The European regulation relating to the central settlement of derivatives (EMIR) contains three different types of

obligations for certain forms of derivatives: (1) reporting to the regulators, (2) central settlement via central clearing

institutions, and (3) supplementary requirements for bilateral transactions, such as the periodic reconciliation of

derivative positions and exchange of collateral. The regulation entered into force at the end of 2012 and is taking effect

in stages. The reporting, reconciliation and exchange of collateral obligations have already entered into effect and have

been implemented for the Robeco funds. The central settlement of interest-rate swaps in the currencies GBP, EUR, USD

and JPY will take effect as of 21 June 2016 for the Robeco funds. Central settlement for other categories of derivatives

is expected to be introduced at a later stage.

The new European directive for markets in financial instruments (MiFID II) is also significant for the Robeco funds,

particularly in the area of fund distribution and the protection offered to (potential) investors. European distributors of

Robeco funds will in principle no longer be permitted to receive and hold commission based on MiFID II. In addition, it

will be necessary to identify a so-called ‘target market’ for each fund. Moreover, more information will have to be

provided to both retail and institutional clients, for instance on the costs incurred for the fund and its distribution. The

rules contained in MiFID II relating to the infrastructure of the financial markets contain no direct obligations for Robeco

as a fund manager, but are liable to have an indirect impact. This applies for instance to the obligation to trade liquid

derivatives via trading platforms in future. Initially, MiFID II was to enter into effect on 3 January 2017, but on 10

February 2016 the European Commission proposed deferring the date of effect to 3 January 2018.

Developments

RIAM has improved certain aspects of its processes and methods for measuring and controlling financial risks, for

example in the area of market risk and liquidity risk. As regards market risk, a methodology has been developed that

makes it possible to independently monitor the level of active management within the investment funds. RIAM is

therefore better equipped to determine whether, given their positioning, its funds are actually able to outperform the

reference frameworks (such as a benchmark or reference index). There has also been an increased focus on the issue of

liquidity risk within RIAM in the recent period. RIAM has set up a working group that has taken various measures to

ensure that it is effectively prepare for a continuation of the current trend of reduced liquidity in the corporate bond

market.

Risks relating to financial instruments Investment risk

The value of investments may fluctuate. Past performance is no guarantee of future results. The net asset value of the

fund depends on developments in the financial markets and can therefore either rise or fall. Shareholders run the risk

that their investments may end up being worth less than the amount invested, or even worth nothing. The general

investment risk can also be characterized as market risk. Market risk

Market risk can be divided into three types: price risk, currency risk and concentration risk. Market risks are contained

using limits on quantitative risk measures such as tracking error, volatility or value-at-risk. This means that the

underlying risk types (price risk, concentration risk and currency risk) are also indirectly contained.

Price risk

The net asset value of the fund is sensitive to market movements. In addition, investors should be aware of the

possibility that the value of investments may vary as a result of changes in political, economic or market circumstances,

as well as changes in an individual business situation. The entire portfolio is exposed to price risk. The degree of price


risk that the fund runs depends among other things on the risk profile of the fund's portfolio. More detailed

information on the risk profile of the fund's portfolio can be found in the section on Return and risk on page 11.

Currency risk

All or part of the securities portfolio of the fund may be invested in currencies, or financial instruments denominated in

currencies other than the euro. As a result, fluctuations in exchange rates may have both a negative and a positive

effect on the investment result of the fund. Currency risks may be hedged with currency forward transactions and

currency options. Currency risks can be limited by applying relative or absolute currency concentration limits.

Currency risks were not being hedged at balance sheet date.

Currency exposure

EUR x thousand

Currency Gross position 31/12/2015

Exposure to forward

exchange contracts

31/12/2015

Net position 31/12/2015

In % 31/12/2015

In % 31/12/2014

ZAR 20,430

–

20,430

42.4

46.6

NGN 6,283

–

6,283

13.0

13.2

KES 4,485

–

4,485

9.3

8.2

EGP 3,129

–

3,129

6.5

6.4

GHS 2,861

–

2,861

5.9

6.0

BWP 2,100

–

2,100

4.4

3.3

USD 1,618

–

1,618

3.4

4.0

CAD 1,411

–

1,411

2.9

1.9

ZMW 1,099

–

1,099

2.3

3.2

MAD 1,056

–

1,056

2.2

1.5

MUR 1,018

–

1,018

2.1

1.9

GBP 886

–

886

1.8

2.1

EUR 830

–

830

1.7

0.5

TND 504

–

504

1.0

0.5

XOF 267

–

267

0.6

0.0

AUD 242

–

242

0.5

0.7

Total 48,219

0

48,219

100.0

100.0

Concentration risk

Based on its investment policy, the fund may invest in financial instruments from issuing institutions that (mainly)

operate within the same sector or region, or in the same market. In the case of concentrated investment portfolios

events within the sectors, regions or markets in which they invest have a more pronounced effect on the fund assets

than in less concentrated investment portfolios. Concentration risks can be limited by applying relative or absolute

country or sector concentration limits. The table below shows the exposure to stock markets through stocks per country

in amounts and as a percentage of the fund's total equity capital.

Concentration risk by country

Equities

Stock market index futures

Total exposure

In % of net assets

In % of net

assets

31/12/2015

31/12/2015

31/12/2015

31/12/2015 31/12/2014

Africa

South Africa

20,212,926

–

20,212,926

41.9

46.3

Nigeria

7,005,766

–

7,005,766

14.5

15.1

Kenya

4,484,749

–

4,484,749

9.3

8.2

Egypt

3,900,254

–

3,900,254

8.1

8.3

Ghana

2,861,086

–

2,861,086

5.9

6.0

Botswana

2,169,375

–

2,169,375

4.5

3.2

Zambia

1,531,055

–

1,531,055

3.2

3.6

Morocco

1,056,608

–

1,056,608

2.2

1.5

Mauritius

1,000,980

–

1,000,980

2.1

1.9


Concentration risk by country

Equities

Stock market index futures

Total exposure

In % of net assets

In % of net

assets

31/12/2015

31/12/2015

31/12/2015

31/12/2015 31/12/2014

Tunisia

504,106

–

504,106

1.1

0.5

Senegal

266,786

–

266,786

0.5

0.0

United Arab Emirates

140,317

–

140,317

0.3

0.0

America

Canada

1,438,879

–

1,438,879

3.0

2.2

Europe

The Netherlands

650,080

–

650,080

1.4

0.0

United Kingdom

267,731

–

267,731

0.6

1.2

Portugal

111,121

–

111,121

0.2

0.6

Ireland

22,844

–

22,844

0.0

0.1

Switzerland

21,261

–

21,261

0.0

0.0

Guernsey

2,766

–

2,766

0.0

0.0

Australia

Australia

330,621

–

330,621

0.7

0.8

Total

47,979,311

0

47,979,311

99.5

99.5

The sector concentrations are shown below.

Sector allocation

In % 31/12/2015

31/12/2014

Financials

47.2

45.6

Consumer discretionary

16.7

17.2

Materials

10.3

10.2

Consumer staples

8.9

7.4

Telecom services

8.8

11.0

Industrials

2.8

2.8

Energy

1.9

2.7

Information technology

1.2

0.8

Utilities

1.1

1.1

Pharmaceutical and health care

0.6

0.7

Other assets and liabilities

0.5

0.5

Total

100.0

100.0

Leverage risk

The fund may make use of derivative instruments, techniques or structures. They may be used for hedging risks, and for

achieving investment objectives and ensuring efficient portfolio management. These instruments may be leveraged,

which will increase the fund’s sensitivity to market fluctuations. The risk of derivative instruments, techniques or

structures will always be limited within the conditions of the fund's integral risk management. The degree of leveraged

financing in the fund, measured using the gross method (where 0% exposure indicates no leveraged financing) over

the year, as well as on the balance sheet date, is shown in the table below. The gross method means that the absolute

underlying value of the long positions and the short positions in derivatives are added up and represented as a

percentage of the assets.

Leverage risk


Lowest exposure during the

reporting period

Highest exposure during the

reporting period

Average exposure during the reporting

period

Exposure per 31/12/2015

0%

5%

1% 0%

Counterparty risk

Counterparty risk is a circumstantial form of risk that is a consequence of the implemented investment policy. It occurs

when a counterparty of the fund fails to fulfill its financial obligations arising from financial transactions with the fund.

This risk is limited as much as possible by taking every possible care in the selection of counterparties. In selecting

counterparties the assessments of independent rating bureaus are taken into account, as are other relevant indicators.

Wherever it is customary in the market, the fund will demand and obtain collateral in order to mitigate counterparty

risk. In the table below a figure that best represents the maximum credit risk is indicated.

Counterparty risk

31/12/2015

31/12/2014

EUR x thousand

In % of net assets

EUR x thousand

In % of net assets

Accounts receivable

330

0.7

799

1.3

Cash and cash equivalents

65

0.1

824

1.4

Total

395

0.8

1,623

2.7

Any collateral received has not been taken into account in the calculation of the total credit risk. Counterparty risk is

contained by applying limits to the exposure per counterparty as a percentage of the fund assets. As of the balance

sheet date there were no counterparties with an exposure of more than 5% of the fund's total assets.

Liquidity risk

Liquidity risk is an incidental form of risk that is a consequence of the investment policy pursued. Liquidity risk occurs

when financial instruments cannot be sold in a timely fashion unless additional costs are incurred. Liquidity risk can be

divided into two categories: exit risks and the liquidity risk of financial instruments.

Exit risk

Exit risks occur when the fund's value is negatively affected by the exit of one or more clients, with negative

consequences for existing clients. The extent to which the value of the fund can be negatively affected depends on the

liquidity of the financial instruments in the portfolio, and on the concentration of clients. To prevent an exit negatively

affecting the fund, the fund charges the client a surcharge to cover any exit costs.

Liquidity risk of financial instruments

The actual buying and selling prices of financial instruments in which the fund invests partly depend upon the liquidity

of the financial instruments in question. It is possible that a position taken on behalf of the fund cannot be quickly

liquidated at a reasonable price due to a lack of liquidity in the market in terms of supply and demand. The fund

minimizes this risk by mainly investing in financial instruments that are tradeable on a daily basis. Moreover liquidity

risks of financial instruments are contained using limits on the non-liquid portion of the securities portfolio.

Manager

Robeco Institutional Asset Management B.V. (RIAM) manages the fund. In this capacity RIAM handles asset

management, administration, marketing and distribution of the fund. With effect from 22 July 2014, RIAM has a

license from the AIFMD as defined by Section 2:65 of the Wft. In addition, RIAM is licensed as a manager of UCITS

(2:69b Wft), which includes managing individual assets and giving advice on financial instruments. RIAM is subject to

supervision by the Netherlands Authority for the Financial Markets (the “AFM”). RIAM has listed the fund with AFM.

RIAM is a 100% subsidiary of Robeco Group N.V. (via Robeco Europe Holding B.V.). Robeco Group N.V. is part of ORIX

Corporation. ORIX Corporation owns 90.01% of the shares in Robeco Group N.V. and Rabobank Group owns 9.99% of

the shares. Affiliated parties

The fund and the manager may utilize the services of and carry out transactions with parties affiliated to the fund as

defined in the BGfo, such as RIAM, Robeco Nederland B.V and ORIX Corporation. The services entail the execution of

tasks that have been outsourced to these parties such as (1) securities lending, (2) hiring temporary staff and (3)

issuance and repurchase of the fund’s shares. Transactions that can be carried out with affiliated parties include the

following: treasury management, derivatives transactions, custody of financial instruments, lending of financial


instruments, credit extension, purchase and sale of financial instruments on regulated markets or through multilateral

trading facilities. All these services and transactions are executed at market rates.

Accounting principles General

The financial statements are produced according to the continuity assumption. Unless stated otherwise, items shown in

the annual financial statements are included at nominal value and expressed in thousands of euros.

Tradability

The fund is an open-end investment company, meaning that, barring exceptional circumstances, it issues and

repurchases its shares on a daily basis at prices approximating net asset value, augmented or reduced by a limited

surcharge or discount. The only purpose of this surcharge or discount is to cover the costs made by the fund related to

the entry and exit of investors. The maximum current surcharge or discount is 1.00%. Surcharges and discounts will be

offset directly against the fund assets.

Financial investments

Financial investments are classified as trading portfolio and are valued at fair value, unless stated otherwise. The fair

value of stocks is determined on the basis of market prices and other market quotations at closing date. Transaction

costs incurred in the purchase and sale of investments are included in the purchase or sale price as appropriate and are

accounted for as part of the value changes in the profit and loss account. The transaction date of an investment

determines its inclusion in the balance sheet.

Foreign currencies

Transactions in currencies other than the euro are converted into euros at the exchange rates valid at the time. Assets

and liabilities expressed in other currencies are converted into euros at the exchange rate prevailing at balance-sheet

date. Any exchange-rate differences arising are accounted for in the profit and loss account.

Principles for determining the result General

Investment results are determined by investment income, rises or declines in stock prices, rises or declines in foreign

exchange rates and results of transactions in currencies, including forward transactions and other derivatives. Results

are allocated to the period to which they relate and are accounted for in the profit and loss account.

Investment income

Net cash dividends declared during the year under review, the nominal value of stock dividends declared and interest

received and paid. Accrued interest at balance-sheet date is taken into account.

Changes in value

Realized and unrealized capital gains and losses on securities and currencies are presented under this heading.

Realization of capital gains takes place on selling as the difference between the realizable sales value and the average

historical cost price. Unrealized capital gains relate to value changes in the portfolio between the beginning of the

financial year and the balance sheet date, corrected by the realized gains when positions are sold or settlement takes

place.

Allocation to share classes The fund is managed in such a way that the allocation of results to the different share classes occurs proportionately on

a daily basis. Issue and repurchase of own shares are registered per share class.


Notes to the balance sheet

1 Equities

Movements in the stock portfolio

EUR x thousand

2015

2014

Book value (fair value) at opening date

59,986

57,892

Purchases

8,831

11,528

Sales

–10,260

–10,704

Unrealized gains

–13,482

849

Realized gains

2,904

421

Book value (fair value) at closing date

47,979

59,986

A breakdown of this portfolio is given under List of securities, in the Notes section. A sub-division into regions and

sectors is provided under the information on concentration risk under the information on risks relating to financial

instruments.

Transaction costs

Brokerage costs and exchange fees relating to investment transactions are discounted in the cost price or the sales

value of the investment transactions. These costs and fees are charged to the result ensuing from changes in value. The

quantifiable transaction costs are shown below.

Transaction costs

EUR x thousand

2015

2014

Transaction type

Equities

33

53

Robeco wants to be certain that the selection of counterparties for order execution (brokers) occurs using procedures

and criteria that ensure the best results for the fund.

The costs charged by brokers are not necessarily just for the order they have executed, but may also relate to research

supplied by the brokers. Robeco only pays for research if this leads to an improvement in the investment decisions

made at Robeco. The costs for research can be paid for by the fund through full service fees or commission sharing

agreements (CSA).

The breakdown of the transaction costs over the reporting period is as follows.

Breakdown of equity transaction costs

EUR x thousand

2015 2014

Type of transaction

Order execution

11 23

Exchange fees

14 26

Research paid for via full service

8 4

Research paid for via CSA

– –

Total transaction costs

33

53

2 Dividends receivable These are receivables arising from net dividends declared but not yet received.

3 Other receivables This concerns:


Other receivables

EUR x thousand 31/12/2015

31/12/2014

Dividend tax to be reclaimed 117

262

Bank transactions to be classified 32 –

Other –

12

Subtotal (investment activities) 149

274

Receivables from issuance of new shares 20

37

Subtotal (financing activities) 20

37

Total 169

311

4 Cash and cash equivalents This concerns:

Cash and cash equivalents


31/12/2014

Freely available cash

65

824

Total

65

824

5 Payable to credit institutions This concerns temporary debit balances on bank accounts caused by investment transactions.

6 Payable to affiliated parties This concerns the following payables to RIAM:

Payable to affiliated parties


31/12/2014

Liabilities on management fee

47

56

Liabilities on service fee

5

6

Total 52 62

7 Other liabilities This concerns:

Other liabilities


31/12/2014

Costs payable 10

28

Other –

8

Subtotal (investment activities) 10

36

Liabilities from acquisition of own shares 34

372

Subtotal (financing activities) 34

372

Total 44

408

8 Shareholders’ equity

Composition of and movements in shareholders’ equity

EUR x thousand

2015

2014

Issued capital Robeco Afrika Fonds

Situation on opening date

117

335

Received on shares issued

57

67

Paid for shares repurchased

–34

–285


Composition of and movements in shareholders’ equity

EUR x thousand

2015

2014


140

117

Issued Capital Robeco Afrika Fonds - EUR G


411

147


49

379


–84

–115


376

411

Share-premium reserve Robeco Afrika Fonds


15,466

39,187


7,021

8,758


–4,502

–34,530

Correction to share-premium reserve as a result of switch

–

2,051


17,985

15,466

Share-premium reserve Robeco Afrika Fonds - EUR G


37,436

14,069


5,308

39,773


–8,951

–14,355

Correction to share-premium reserve as a result of switch

–

–2,051


33,793

37,436

Other reserves


3,993

418

Addition to result previous financial year

1,247

3,575


5,240

3,993

Undistributed earnings


2,845

4,352

Dividend payment Robeco Afrika Fonds

–436

–228

Dividend payment Robeco Afrika Fonds - EUR G

–1,162

–549

Addition to other reserves

–1,247

–3,575

Undistributed result financial year

–9,315

2,845


–9,315

2,845

Shareholders’ equity

48,219

60,268

The company’s authorized share capital is EUR 1,500,000 million, divided into 1,499,990 ordinary shares with a

nominal value of EUR 1 each and 10 priority shares with a nominal value of EUR 1 each. The priority shares have

already been issued. The ordinary shares are divided into 749,990 Robeco Afrika Fonds shares and 750,000 Robeco

Afrika Fonds - EUR G shares. Fees are not included in the share premium reserve.


EUR x thousand

2015

2014

Assets at opening date

60,268

58,508

Company shares issued

12,435

48,977

Company shares repurchased

–13,571

–49,285



EUR x thousand

2015

2014


59,132

58,200

Investment income

2,202

2,439

Management costs

–638

–704

Service fee

–69

–74

Custody costs

–74

–78

Other costs

–25

–41

1,396

1,542

Changes in value

–10,711

1,303

Net result

–9,315

2,845

Dividend payments

–1,598

–777

Assets at closing date

48,219

60,268

9 Assets, shares outstanding and net asset value per share

Assets, shares outstanding and net asset value per share

Afrika Fonds Afrika Fonds - EUR G

31/12/2015

31/12/2014

31/12/2013

31/12/2015

31/12/2014

31/12/2013

Assets in EUR x thousand

14,960

15,554

43,073

33,259

44,714

15,435

Status of number of shares issued as at the beginning of the financial year

117,243

334,837

451,416

410,547

147,312

–

Shares issued in financial year

56,726

67,253

155,715

48,947

379,009

152,343

Shares repurchased in financial year

–33,841

–284,847

–272,294

–84,254

–115,774

–5,031

Number of shares outstanding

140,128

117,243

334,837

375,240

410,547

147,312

Net asset value per share in EUR x 1

106.76

132.67

128.64

88.63

108.91

104.78

Dividend paid per share during financial year

4.00

1.60

2.20

3.00

1.40

–


Notes to the profit and loss account

Income

10 Investment income

This concerns:

Investment income

EUR x thousand 2015

2014

Dividend received* 2,195 2,408

Interest

7 –7

Other income – 38

Total 2,202 2,439

This concerns net dividends received. Factored into this amount as withholding tax reclaimable from the country that withheld the tax plus withholding tax that is subject to a remittance reduction from the Dutch tax authorities. The remittance reduction is offset against the dividend tax payable on dividends distributed by the fund.

Costs

11 Management costs and service fee

The management fee and service fee are charged by the manager. Management costs only relate to management

fees. The fees are calculated daily on the basis of the fund assets.

Management costs and service fee specified in the prospectus

In %

Robeco Afrika Fonds Robeco Afrika Fonds - EUR G

Management costs

1.75

0.88

Service fee 1

0.12

0.12

1 For the share classes, the service fee is 0.12% per year on assets up to EUR 1 billion, 0.10% on assets above EUR 1 billion,and 0.08% on assets above EUR

5 billion.

The management costs cover all current costs resulting from the management and marketing of the fund. If the

manager outsources operations to third parties, any costs associated with this will also be paid from the management

fee. The management costs for the Robeco Afrika Fonds asset class also include the costs related to registering

participants in this asset class.

The service fee paid to RIAM covers the administration costs, the costs of the external auditor, other external advisers,

regulators, costs relating to reports required by law, such as the annual and semiannual reports, and the costs relating

to the meetings of shareholders. Costs for the external auditor are not included in the fund's results. The fee that RIAM

pays to the external auditor is for audit-related costs only.

12 Performance fee

Robeco Afrika Fonds N.V. is not subject to a performance fee.

13 Other costs This includes:

Other costs

EUR x thousand 2015

2014

Custody fee 74 78

Bank charges 7 18

Costs for fund agent 7 11

Other costs relating to own shares 11 12

Total 99 119


14 Ongoing charges

Ongoing charges Robeco Afrika Fonds Robeco Afrika Fonds - EUR G

In %

2015

2014

2015

2014

Cost item

Management costs

1.75

1.75

0.88

0.88

Service fee

0.12

0.12

0.12

0.12

Other costs

0.17

0.15

0.17

0.16

Net result

2.04

2.02

1.17

1.16

The percentage of ongoing charges is based on the average assets per share class. The average assets are calculated on

a daily basis. The ongoing charges include all costs charged to the share classes in the reporting period, excluding the

costs of transactions in financial instruments and interest charges. Not included in the ongoing charges are also any

payment of entry or exit costs charged by distributors.

15 Maximum costs

For some cost items, the fund prospectus specifies a maximum percentage of average assets. The table below

compares these maximum percentages with the costs actually charged.

Maximum costs

2015 in EUR x

thousand 2015 in % of

net assets

Maximum as specified in the

prospectus 1

Management costs Robeco Afrika Fonds share class

266

1.76

1.75

Service fee Robeco Afrika Fonds share class 18 0.12

0.12

Management costs Robeco Afrika Fonds - EUR G share class

372

0.88

0.88

Service fee Robeco Afrika Fonds - EUR G share class 51 0.12

0.12

Custody charge and bank costs 81 0.14

0.20

Costs for fund agent

7

0.01

0.02

1 The prospectus also specifies a maximum percentage of the total cost. This amounts to 4.59% for the Robeco Afrika Fonds share class and 3.72% for the Robeco Afrika Fonds - EUR G share class.

16 Turnover ratio The turnover ratio for the reporting period was 0% (for the previous reporting period it was –10%). This ratio shows the

rate at which the fund's portfolio is turned over and is a measure of the incurred transaction costs resulting from the

portfolio policy pursued and the ensuing investment transactions. The turnover ratio is determined by expressing the

amount of the turnover as a percentage of the average fund assets. The average assets of the fund are calculated on a

daily basis. The amount of the turnover is determined by the sum of the purchases and sales of investments less the

sum of issuance and repurchase of own shares. Cash and money-market investments with an original life to maturity of

less than one month are not taken into account in the calculation. Starting this year, the sum of issues and repurchases

of own shares will be determined as the balance of all issues and repurchases of the fund in contrast to the sum of the

gross issues and repurchases in the previous year. The new methodology fits in better with the manner in which

surcharges and discounts are determined on issuing or purchasing shares. The comparative figure has been adjusted

for use with the new methodology.

17 Transactions with affiliated parties No transactions with affiliated parties were executed in the reporting period other than charged management costs

and service fee. During the reporting period the fund paid RIAM the following amounts in management costs and

service fees:

Management costs and service fee paid

EUR x thousand Counterparty

2015

2014

Management costs RIAM

638

704

Service fee RIAM

69

74


18 Remuneration policy

The fund itself does not employ any personnel. RIAM has offices at different locations around the world, with

employees whose work primarily involves client-related activities for the fund. In the Netherlands, persons performing

duties for the fund at management-board level and portfolio managers are employed by Robeco Nederland B.V. The

remuneration for these persons comes out of the management fee. RIAM's remuneration policy, which applies to all

employees working under RIAM's responsibility, complies with the applicable requirements laid down in the European

framework documents of the AIFMD and MiFID, as well as the applicable Dutch laws such as the Remuneration Act for

Financial Undertakings (Wet beloningsbeleid financiële ondernemingen, or Wbfo). The financial remuneration of fund

managers is made up of fixed pay and, if applicable, variable pay. RIAM assesses the remuneration policy and its

implementation on a regular basis using the services of various external advisers. Remuneration levels are also

compared on an annual basis with external benchmark data.

Variable remuneration

In accordance with the applicable laws and regulations, the available budget for variable remuneration is approved by

the Supervisory Board of Robeco Groep N.V. based on a proposal made by the remuneration committee. The

remuneration policy is evaluated on an annual basis. The variable remuneration component for the fund managers

depends on the multi-year performance of the fund. The system is linked to outperformance with regard to risk-

adjusted pre-defined annual targets. The calculated outperformance over a one-year, three-year and five-year period is

taken into account when determining the variable remuneration. Both the extent to which team and individual

qualitative objectives have been achieved and the extent to which Robeco corporate values are observed are also

important in this determination. The fund manager’s contribution to the organization’s targets is also taken into

consideration. If this performance-related variable remuneration (partly) exceeds the fixed threshold amount, 40% of

the payment will be deferred for a period of at least three years. The deferred parts will be converted into hypothetical

‘Robeco Group’ shares, the value of which moves with the company's future results.

In addition, RIAM has implemented supplementary risk-management measures applicable to variable remuneration.

For the determination of total variable remuneration, ex-ante measures will be implemented to adjust the total

variable remuneration for risks that may occur in the year concerned and furthermore for multiple-year risks that may

affect the risk profile of RIAM. Also, ex-ante measures can be taken by the Supervisory Board to adjust the total

available variable remuneration for the Management Board and day-to-day management to meet the standards of

reasonableness and fairness. RIAM also has the possibility to claw back the allocated variable remuneration should

there be evidence in later years that this variable remuneration was based on incorrect assumptions.

Identified Staff

RIAM has a specific and more stringent remuneration policy for employees who may have a material impact on the risk

profile of the fund. These employees are designated to be 'Identified Staff'. For 2015, RIAM identified 74 other

employees to be Identified Staff on a total group level, including all senior portfolio managers. Among other things the

performance targets of these employees that are used to determine the award of variable pay are subject to additional

risk analyses, both prior to the performance year and at the end when the results are evaluated. In addition, in all cases

at least 70% of the payment of variable remuneration granted to these employees will be deferred for a period of four

years, whereby 50% will be converted into hypothetical 'Robeco Group' shares whose value will follow the company's

future results. Before the actual payment of the deferred variable remuneration components, an additional assessment

is performed to check whether new information would result in decreasing the previously granted remuneration

components (the so-called ‘malus arrangement’).

Of the total amounts granted in remuneration1 to the groups Board of Directors, Identified Staff and Other Employees,

the following amounts are to be assigned to the fund:

Remuneration in EUR x 1

Staff category Fixed pay for 2015

Variable pay for 2015

Board (7 members)

1,041

1,689

Identified Staff (74) (ex board)

4,470

3,180

Other employees (695 employees)

18,824

7,773

1 Remunerations relate to activities performed for one or more entities within the Robeco Group.


The total amount in fixed and variable remuneration assigned to the fund is EUR 36,977. Imputation occurs according

to the following key:

Total remuneration (fixed and variable) x total fund assets

total assets under management (RIAM)

Said remuneration, which comes out of the management fee, is paid by RIAM and is therefore not charged to the fund

separately.

19 Proposed profit appropriation For the financial year 2015, dividend distribution will take place on the basis of the fiscal result in order to fulfill the

fiscal distribution obligation. Based on the number of shares outstanding on 31 December 2015 it is proposed to fix

the dividend per share for the financial year 2015 at:

– EUR 3.00 per share (last year: EUR 4.00) for the Robeco Afrika Fonds share class.

– EUR 3.40 per share (last year: EUR 3.00) for the Robeco Afrika Fonds - EUR G share class.

If legislation and regulations or changes to the outstanding shares necessitate this, an amended dividend proposal will

be submitted to the General Meeting of Shareholders. If this proposal is accepted, the dividend will be payable on 10

June 2016. The shares of Robeco Afrika Fonds and Robeco Afrika Fonds - EUR G will be quoted ex-dividend from 17May

2016.

Shareholders will be offered the opportunity to reinvest the dividend (less dividend tax) in Robeco Afrika Fonds and

Robeco Afrika Fonds - EUR G shares. The price used to calculate this is the transaction price of the shares on the stock

market of Euronext Amsterdam, Euronext Fund Service segment, on 6 June 2016. Costs which distributors charge to

their customers for this, will be borne by the shareholder. In some countries and with some distributors, reinvestment

will not be possible for technical reasons.

20 Events after balance sheet date As a result of the entry into force of the UCITS V Directive, Citibank Europe Plc., Netherlands Branch, has been

appointed custodian of the fund with effect from 18 March 2016.

21 Register of Companies

The fund has its registered office in Rotterdam and is entered in the Register of Companies of the Chamber of

Commerce in Rotterdam under number 24432814.

Currency table

Exchange rates

EUR 1 31/12/2015 31/12/2014

AUD 1.4931 1.4787

BWP 12.2194 11.5079

CAD 1.5090 1.4016

EGP 8.5058 8.6520

GBP 0.7371 0.7761

GHS 4.1388 3.8903

KES 111.1285 109.5701

MAD 10.7719 10.9667

MUR 38.9982 38.4191

NGN 216.2280 221.4392

TND 2.2126 2.2586

USD 1.0863 1.2101

XOF 655.9700 –

ZAR 16.8328 13.9988

ZMW 11.9493 7.7444


List of securities As of 31 December 2015

Market value

Market value

Africa

EUR

ZAR South Africa

–

4 African Bank Investments Ltd

220,944

3,719,100 AngloGold Ashanti Ltd

130,935

2,204,000 Astral Foods Ltd

82,746

1,392,840 AVI Ltd

895,068

15,066,450 Barclays Africa Group Ltd

144,361

2,430,000 Blue Label Telecoms Ltd

1,265,873

21,308,126 Capitec Bank Holdings Ltd

586,892

9,879,000 Clicks Group Ltd

91,785

1,545,000 DataTec Ltd

460,337

7,748,730 EOH Holdings Ltd

75,874

1,277,160 Exxaro Resources Ltd

524,567

8,829,908 FirstRand Ltd

114,634

1,929,600 Fortress Income Fund Ltd

299,358

5,039,013 Foschini Group Ltd/The

213,282

3,590,127 Growthpoint Properties Ltd

36,743

618,488 Impala Platinum Holdings Ltd

504,166

8,486,496 Imperial Holdings Ltd

428,512

7,213,028 Lewis Group Ltd

147,376

2,480,747 Life Healthcare Group Holdings Ltd

152,250

2,562,784 Mediclinic International Ltd

249,336

4,197,006 MMI Holdings Ltd/South Africa

282,942

4,762,685 Mondi Ltd

1,554,914

26,173,483 MTN Group Ltd

66,537

1,120,000 Murray & Roberts Holdings Ltd

163,434

2,751,044 Nampak Ltd

4,642,328

78,143,200 Naspers Ltd

224,099

3,772,200 Nedbank Group Ltd

260,266

4,381,000 Raubex Group Ltd

1,075,077

18,096,498 Remgro Ltd

201,571

3,393,000 Rhodes Food Group Pty Ltd

625,801

10,533,960 Sanlam Ltd

517,860

8,717,000 Santam Ltd

229,225

3,858,480 Sasol Ltd

382,986

6,446,700 Shoprite Holdings Ltd

589,234

9,918,424 Spur Corp Ltd

1,078,964

18,161,930 Standard Bank Group Ltd

287,226

4,834,808 Super Group Ltd/South Africa

298,094

5,017,740 Telkom SA SOC Ltd

294,426

4,956,000 Transaction Capital Ltd

118,965

2,002,500 Trencor Ltd

287,535

4,840,000 Tsogo Sun Holdings Ltd

47,100

792,820 Wilson Bayly Holmes-Ovcon Ltd

359,303

6,048,059 Woolworths Holdings Ltd/South Africa

EUR

NGN Nigeria

Market value

Market value

665,007

143,793,140 Access Bank PLC

17,352

3,751,967 Africa Prudential Registrars PLC

540,517

116,875,000 Dangote Cement PLC

273,295

59,094,000 Dangote Sugar Refinery PLC

335,945

72,640,686 Diamond Bank PLC

481,323

104,075,480 Ecobank Transnational Inc

475,629

102,844,362 FBN Holdings Plc

287,761

62,222,058 FCMB Group Plc

245,921

53,175,000 Fidelity Bank PLC

92,449

19,989,986 Flour Mills of Nigeria PLC

940,119

203,280,000 Lafarge Africa PLC

117,448

25,395,459 Skye Bank PLC

356,984

77,190,000 UAC of Nigeria PLC

82,771

17,897,399 Union Bank of Nigeria PLC

388,642

84,035,250 United Bank for Africa PLC

27,387

5,921,790 United Capital PLC

14,630

3,163,336 Wapic Insurance PLC

908,002

196,335,403 Zenith Bank PLC

EUR

USD

82,606

89,735 Diamond Bank PLC GDR

671,979

729,971 Guaranty Trust Bank PLC GDR

EUR

KES Kenya

337,673

37,525,120 Barclays Bank of Kenya Ltd

562,565

62,517,000 East African Breweries Ltd

655,097

72,800,000 Equity Group Holdings Ltd/Kenya

259,159

28,800,000 KenolKobil Ltd Group

1,105,699

122,874,500 Kenya Commercial Bank Ltd

374,161

41,580,000 Kenya Power & Lighting Ltd

90,317

10,036,800 Mumias Sugar Co Ltd

1,100,078

122,250,000 Safaricom Ltd

EUR

EGP Egypt

204,593

1,740,215 Al Baraka Bank Egypt

48,266

410,536 Alexandria Mineral Oils Co

341,303

2,903,040 Cairo Poultry Co

52,670

448,000 Citadel Capital SAE

700,009

5,954,101 Credit Agricole Egypt SAE

122,511

1,042,047 Egyptian Financial Group-Hermes Holding

127,664

1,085,878 EL Ezz Aldekhela Steel Alexandria

189,190

1,609,200 Ezz Steel

408,684

3,476,160 National Co For Maize Products

153,721

1,307,510 Suez Cement Co SAE

640,192

5,445,314 Talaat Moustafa Group

EUR

USD


Market value

Market value

470,059

510,625 Commercial International Bank GDR

441,392

479,484 Global Telecom Holding SAE GDR

EUR

GHS Ghana

1,142,336

4,727,900 CAL Bank Ltd

133,191

551,250 FAN Milk Ltd

660,695

2,734,485 Ghana Commercial Bank Ltd

232,057

960,438 Guinness Ghana Breweries Ltd

77,553

320,978 SIC Insurance Co Ltd

357,970

1,481,568 Societe Generale Ghana Ltd

257,284

1,064,846 Standard Chartered Bank Ghana Ltd

EUR

BWP Botswana

164,470

2,009,714 Botswana Insurance Holdings Ltd

1,935,200

23,646,890 Letshego Holdings Ltd

EUR

ZAR

69,705

1,173,331 Choppies Enterprises Ltd

EUR

ZMW Zambia

164,055

1,960,345 Copperbelt Energy Corp PLC

400,732

4,788,464 Lafarge Cement Zambia PLC

372,742

4,454,000 Real Estate Investments Zambia

73,226

875,000 Zambeef Products PLC

88,511

1,057,648 Zambia National Commercial Bank PLC

EUR

GBP

431,789

318,250 Zambeef Products PLC

EUR

MAD Morocco

19,031

205,000 Alliances Developpement Immobilizer SA

51,954

559,645 Banque Centrale Populaire

192,686

2,075,598 Lesieur Cristal

570,072

6,140,750 Maroc Telecom

222,865

2,400,685 TOTAL Maroc SA

EUR

MUR Mauritius

640,799

24,990,000 MCB Group Ltd

360,181

14,046,409 SBM Holdings Ltd

EUR

TND Tunisia

2

5 Banque de l'Habitat

87,860

194,400 Banque de l'Habitat

36,599

80,980 Banque de l'Habitat (interim share)

379,645

840,000 Banque Nationale Agricole

EUR

XOF Senegal

266,786

175,000,000 Sonatel

EUR

EGP United Arab Emirates

140,317

1,193,500 Orascom Construction Ltd

Market value

Market value

America

EUR

CAD Canada

39,962

60,300 Africa Oil Corp

91,988

138,805 Energizer Resources Inc

353,584

533,540 First Quantum Minerals Ltd

112,504

169,763 Ivanhoe Mines Ltd

496,536

749,250 Lucara Diamond Corp

285,795

431,250 Nevsun Resources Ltd

EUR

GBP

58,510

43,125 Aureus Mining Inc

Europe

EUR

EUR The Netherlands

650,080

650,080 Steinhoff International Holdings NV

EUR

GBP United Kingdom

65,939

48,600 Bellzone Mining PLC

6

4 Afren PLC

6

4 African Minerals Ltd

200,963

148,120 Centamin PLC

EUR

AUD

817

1,220 African Petroleum Corp Ltd

EUR

EUR Portugal

43,172

43,172 SDC - Investimentos SGPS SA

67,949

67,949 Teixeira Duarte SA

EUR

GBP Ireland

22,844

16,838 Circle Oil PLC

EUR

CAD Switzerland

21,261

32,082 Katanga Mining Ltd

EUR

GBP Guernsey

2,766

2,039 Chariot Oil & Gas Ltd

Australia (0.7%)

EUR

AUD Australia

106,745

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Rotterdam, 31 March 2016

The Management Board

Robeco Institutional Asset Management B.V.

Leni M.T. Boeren


Hans A.A. Rademaker

Roland Toppen


Other data

Profit appropriation

According to article 20 of the fund's Articles of Association, the profit less allocations to the reserves deemed desirable

by the management board shall be at the disposal of the General Meeting of Shareholders.

Special controlling rights in accordance with the Articles of Association

The ten priority shares in the company’s share capital are held by Robeco Group N.V. According to the company’s

Articles of Association, the rights and privileges of the priority shares include the appointment of managing directors

and the amendment to the Articles of Association. The Management Board of Robeco Group N.V. determines how the

voting rights are exercised:

David A. Steyn, chairman (from 1 November 2015)

Roderick M.S.M. Munsters, chairman (up to 1 November 2015)

Leni M.T. Boeren


Hans A.A. Rademaker

Jurgen B.J. Stegmann (up to 1 May 2015)

Roland Toppen (from 1 December 2015)

Directors’ interests On 1 January 2015 and 31 December 2015, the directors had personal interests in the fund's investments.

KPMG Accountants N.V. is recorded in the Dutch Trade Register under number 33263683, and is part of the KPMG network of

independent companies affiliated to KPMG International Cooperative (KPMG International), a Swiss entity.

Statement of the independent auditor To: The General Meeting of Shareholders of Robeco Afrika Fonds N.V.

Report on the financial statements for 2015

Our opinion

In our opinion, the financial statements give a true and fair view of the financial position of Robeco Afrika Fonds N.V. as at 31 December 2015, and of its result for the financial year ending on 31 December 2015 in accordance with Part 9 of Book 2 of the Netherlands Civil Code (Burgerlijk Wetboek or BW) and the Netherlands Financial Supervision Act (Wet op het financieel toezicht or Wft).

What we audited

We audited the 2015 financial statements of Robeco Afrika Fonds N.V. (the company) in Rotterdam.

The financial statements comprise:

1 the balance sheet as at 31 December 2015;

2 the profit and loss account for 2015;

3 the explanatory notes that provide an overview of the principles of financial reporting applied, and other items of information.

The basis for our opinion

We conducted our audit pursuant to Dutch law, which also covers the Dutch auditing standards. Our responsibilities on this basis are described in the section "Our responsibilities

for auditing the financial statements".

As required by the Dutch regulations regarding the independence of accountants' audit assignments (Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten or ViO) and other independence-related rules in the Netherlands relevant to this assignment, our status is that of an entity independent of Robeco Afrika Fonds N.V. We further comply with the Dutch rules of professional conduct and practice for auditors (Verordening gedrags- en beroepsregels accountants or VGBA).

We find the audit evidence we have obtained sufficient and appropriate to provide a basis for our audit opinion.

Audit approach

Materiality

Misstatements may result from fraud or error and are material if it can reasonably be expected that these, either individually or jointly, can have an effect on the economic decisions made by the users of these financial statements. Materiality affects the nature,

• Materiality of EUR 0.5 million

• 1% of shareholders’ equity



timing and extent of our auditing activities and the evaluation of the effect of recognized misstatements on our opinion.

Based on our professional judgment, we have set total materiality for the financial statements at EUR 0.5 million (2014: EUR 0.6 million). Shareholders' equity is used as a benchmark to determine materiality, which was 1% thereof (2014: 1%). In light of the fact that investors are primarily interested in a fund's asset growth (returns), we consider the capital invested by shareholders to be the most suitable benchmark. As a result of value changes in investments, returns are volatile and thus form a less suitable benchmark for materiality. We also take into account actual and/or possible misstatements that in our opinion are material for the users of the financial statements for qualitative reasons.

We informed the Supervisory Board of any misstatements noted during our audit in excess of EUR 24,000 (2014: EUR 34,134) as well as smaller misstatements that in our opinion are relevant for qualitative reasons.

Key items for our audit

In the key items for our audit we define those issues that we professionally judge to be most significant in our audit of the financial statements. The key items for our audit were communicated to the Management Board, without being fully representative of all points discussed.

We determined our audit activities relating to these key items within the context of the full audit of the financial statements. Our findings relating to the individual key items must be seen in this context and not as separate opinions on such key items.

Valutation of investments

Description

The investments of Robeco Afrika Fonds N.V. amount to more than 96% of the balance-sheet total. These investments are valued at their fair value, determined on the basis of market information and an estimate by management of the liquidity of the investments. As a result, the valuation of the investments determines the company's financial results to a substantial extent. Our estimation of a risk of material misstatement in the valuation of the investments is lower, partly because the investments are composed of liquid, listed securities for which there is an active market. Because of the volume of investments relative to the financial statements overall we consider the valuation of the listed investments to be a key item for our audit.

Our comments

Our auditing activities included establishing that the price used for the investments was obtained in accordance with the method identified for the asset class concerned. We established this i.a. by giving the investment valuations an integral check using our own independently determined valuation method based on prices and liquidity observed in the market. We enlisted the services of dedicated valuation specialists for this. In addition, we evaluated the adequacy of the information given on page 23.

Our findings

Our activities revealed that the valuation of investments performed by the Management Board resulted in an acceptable valuation of the investments in the financial statements.

Internal control of the relevant processes by the Management Board of the company

Description

Robeco Afrika Fonds N.V. has no employees, and its portfolio management, risk management and financial and investment administration are therefore contracted out to Robeco Institutional Asset Management B.V. (RIAM). RIAM at the same time provides the Management Board of Robeco Afrika Fonds N.V. Since Robeco Afrika Fonds N.V. is therefore dependent on RIAM for generating financial information and drafting financial statements, we consider RIAM’s internal control systems to be one of the key items of our audit.



Internal control of the relevant processes by the Management Board of the company

Our comments

For our audit of the financial statements of Robeco Afrika Fonds N.V. we rely on the activities that an independent auditor performs for RIAM on the administrative organization relevant to Robeco Afrika Fonds N.V. and RIAM's internal control measures, and the ISAE 3402 type II report drafted specifically for this purpose. Our audit activities consisted among other things in determining the relevant control measures and subsequently in evaluating the activities described in the controlling auditor's report to check the effective functioning of the internal control measures applied and the results achieved with them.

Our findings

Our activities revealed that the internal control measures within the processes applied by RIAM relevant to Robeco Afrika Fonds N.V. were sufficiently effective to be used in performing our audit of Robeco Afrika Fonds N.V.’s financial statements.

Responsibilities of the Management Board for the financial statements

The Management Board is responsible for the preparation and fair presentation of the financial statements and for the preparation of the annual report, both in accordance with Part 9 of Book 2 of the BW and the Wft. Within this context, the Management Board is also responsible for such internal control as it deems necessary to enable the preparation of annual financial statements that are free from material misstatement due to errors or fraud.

When drafting the financial statements, the Management Board must assess whether the company is able to maintain continuity in its activities. Pursuant to the reporting systems referred to, the Management Board must draft the financial statements on the basis of its assumed continuity, unless it plans to liquidate the company or terminate its business activities, or if termination is the only realistic alternative. In the financial statements, the Management Board must disclose any events or circumstances that could elicit reasonable doubt about the company's ability to maintain continuity in its business activities.

The Management Board is responsible for supervising the process used by the company for its financial reporting.

Our responsibilities for auditing the financial statements

Our responsibility is to plan and perform an audit assignment in such a way that we obtain sufficient and suitable auditing information to give the required opinion.

Our audit is performed with a high but not absolute degree of assurance, so that it is possible that not all errors or instances of fraud will be detected during our audit.

We have performed this audit professionally and critically and, where relevant, applied our professional judgment in accordance with the Dutch auditing standards, ethical specifications and the requirements of independent auditing. Our audit included the following:

• Identifying and assessing the risks of material misstatement in the financial statements due to errors or fraud; determining and performing auditing activities in response to these risks; and obtaining audit information that is adequate and suitable to be used as a basis for our opinion. In the case of fraud, there is a greater risk of a material misstatement not being discovered than in the case of errors. Fraud could involve conspiracy, forgery, intentional non-reporting of transactions, intentional misrepresentation or violation of internal control systems.

• Obtaining insight into internal control systems that are relevant to the audit with the aim of selecting audit activities that fit the circumstances. The aim of these activities is not to judge the effectiveness of the entity’s internal control.



• Evaluating the suitability of the principles used for financial reporting, and evaluating the fairness of estimates by the Management Board and the information provided on this in the financial statements.

• Establishing that the Management Board's continuity assumption is acceptable. In addition, using the audit information obtained to establish whether there are events or circumstances that could elicit reasonable doubt as to whether the company can maintain continuity in its business activities. If we conclude that there is material uncertainty, we are obliged in our audit statement to highlight the relevant associated information in the financial statements. If this offers insufficient explanation, we will be obliged to adjust our statement. Our conclusions are based on the audit information obtained up to the date of our audit statement. However, future events or circumstances can lead to a situation in which a company may no longer be able to maintain its continuity.

• Evaluating the presentation, structure and content of the financial statements and the information provided therein; and

• evaluating whether the financial statements provide an accurate picture of the underlying transactions and events.

We communicate with the Management Board i.a. about the planned scope and timing of the audit, and about significant findings emerging from our audit, including any significant shortcomings in internal control. We confirm to the Management Board that we have observed the relevant ethical standards for auditor independence. We also communicate to the Management Board about any relationships and other matters that could reasonably affect our independence and about any measures in this connection to guarantee our independence.

We determine the key items for our audit of the financial statements on the basis of any matters discussed with the Management Board. We describe these key items in our audit statements, unless statutory and regulatory requirements prohibit this or, in exceptionally rare cases, when non-reporting is in the interest of the public at large.

Statement regarding other statutory and regulatory requirements

Statement regarding the annual report and other data

On the basis of the statutory requirements pursuant to Part 9 Book 2 of the BW (relating to our responsibility to report on the annual report and other data) we declare that:

Our examination to establish whether the annual report was drafted in accordance with Part 9, Book 2 of the BW, and whether the other data as required by Part 9 Book 2 of the BW were added, has, to the extent of our competence, brought no shortcomings to light.

The annual report is, to the extent of our competence, in accordance with the financial statements.

Appointment

We were first appointed auditors to Robeco Afrika Fonds N.V. to perform auditing for the financial year 2014 on the basis of the resolution at the General Meeting of Shareholders of 16 May 2014 and have since acted as the company’s external auditors.

Amstelveen, 31 March 2016

KPMG Accountants N.V.



W.L.L. Paulissen RA

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