Annual Report 2019
Robeco Capital Growth Funds
Société d’Investissement à Capital Variable
Incorporated under Luxembourg law
RCS B 58 959
Contents
General Information 4
Report of the Board of Directors 6 General 6 General introduction 9
Risk management 10
Global Equity sub-funds 12
Regional & Country Equity sub-funds 25
Theme Equity sub-funds 35
Global Bond sub-funds 40
Regional Bond sub-funds 51
Asset Allocation sub-funds 57
Fund governance 58
Sustainable investing 58
Other data (unaudited) 62
Financial statements 110
Combined Statement of net assets 110
Combined Statement of operations and changes in net assets 128
Statistical Information 164
Notes to the financial statements as at 31 December 2019 186
REPORT OF THE REVlSEUR D’ENTREPRlSES AGREE 257
Schedule of Investments 260
Robeco BP Global Premium Equities 260
Robeco QI Global Conservative Equities 267
Robeco Sustainable Global Stars Equities 278
Robeco Emerging Stars Equities 281
Robeco Emerging Markets Equities 284
Robeco QI Emerging Markets Active Equities 289
Robeco QI Global Momentum Equities 299
Robeco QI Global Developed Sustainable Enhanced Index Equities 306
Robeco QI Emerging Markets Enhanced Index Equities 327
Robeco QI Emerging Conservative Equities 343
Robeco Emerging Markets Smaller Companies Equities 353
Robeco QI Global Value Equities 357
Robeco QI Global Developed Multi-Factor Equities 367
Robeco QI Global Developed Conservative Equities ex Japan 386
Robeco QI Emerging Markets Sustainable Active Equities 392
Robeco QI Global Developed Conservative Equities 400
Robeco QI Global Developed Active Equities 408
Robeco QI Customized Emerging Markets Enhanced Index Equities I 419
Robeco QI Global Quality Equities 444
Robeco QI Global Sustainable Conservative Equities 453
Robeco QI Global Developed Enhanced Index Equities 460
Robeco Sustainable Emerging Stars Equities 480
Robeco QI Emerging Markets Sustainable Enhanced Index Equities 483
Robeco Asia-Pacific Equities 496
Robeco Sustainable European Stars Equities 500
Robeco QI European Conservative Equities 502
Robeco QI US Conservative Equities 510
Robeco BP US Premium Equities 514
Robeco Chinese Equities 521
Robeco Indian Equities 524
Robeco Asian Stars Equities 526
Robeco BP US Large Cap Equities 529
Robeco BP US Select Opportunities Equities 533
Robeco QI Continental European Conservative Equities 539
Robeco Chinese A-share Equities 544
Robeco QI Chinese A-share Active Equities 546
Robeco QI Chinese A-share Conservative Equities 553
Robeco Capital Growth Funds 2
Contents (continued)
Schedule of Investments (continued)
Robeco QI European Value Equities 557
Robeco QI US Enhanced Index Equities 562
Robeco QI European Enhanced Index Equities 572
Robeco New World Financial Equities 581
Robeco Sustainable Property Equities 588
Robeco Global Consumer Trends Equities 592
RobecoSAM Sustainable Food Equities 597
Robeco MegaTrends 600
Robeco Digital Innovations 604
Robeco Global FinTech Equities 607
Robeco High Yield Bonds 611
Robeco Emerging Credits 634
Robeco Global Credits 642
Robeco QI Dynamic High Yield 657
Robeco QI Global Multi-Factor Credits 660
Robeco QI Global Multi-Factor Bonds 676
Robeco Global Credits – Short Maturity 679
Robeco Corporate Hybrid bonds 692
Robeco QI Global Multi-Factor High Yield 698
RobecoSAM SDG Credit Income 708
RobecoSAM Global SDG Credits 717
RobecoSAM SDG High Yield Bonds 730
Robeco Euro Government Bonds 745
Robeco Euro Credit Bonds 751
Robeco All Strategy Euro Bonds 762
Robeco European High Yield Bonds 773
RobecoSAM Euro SDG Credits 782
Robeco Financial Institutions Bonds 792
Robeco Investment Grade Corporate Bonds 800
Robeco QI Global Diversified Carry 807
Robeco QI Multi Factor Absolute Return 812
Note: In this report the abbreviated names of the sub-funds will be used, i.e. without the prefix 'Robeco Capital Growth Funds'.
Robeco Capital Growth Funds 3
General Information
Robeco Capital Growth Funds
(hereafter the ‘Company’)
Undertaking for collective investment in transferable securities incorporated as a ‘Société d’Investissement à Capital Variable’
(‘SICAV’) under Luxembourg law.
Register of Companies RCS Luxembourg B 58 959
Registered Office 6, route de Trèves
L-2633 Senningerberg
Grand Duchy of Luxembourg
Board of Directors Mr. H.P. de Knijff (Director/Chairman)
Mr. J.H. van den Akker (Director)
Mrs. S. van Dootingh (Director)
Mr. H.J. Ris (Director) (since 9 October 2019)
Rob van Bommel (until 9 October 2019)
H.P. de Knijff, J.H. van den Akker and H.J. Ris are employees of Robeco Nederland B.V. (Affiliated Entity).
S. van Dootingh is an independent director.
Management Company Robeco Luxembourg S.A.
5, rue Heienhaff
L-1736 Senningerberg
Grand Duchy of Luxembourg
Cabinet de révision agréé (Independent auditor) KPMG Luxembourg, Société coopérative
39, Avenue John F. Kennedy
L-1855 Luxembourg
Grand Duchy of Luxembourg
Depositary, Domiciliary and Paying Agent J.P. Morgan Bank Luxembourg S.A.
6, route de Trèves
L-2633 Senningerberg
Grand Duchy of Luxembourg
Administration Agent Robeco Luxembourg S.A.
Delegated to:
J.P. Morgan Bank Luxembourg S.A.
6, route de Trèves
L-2633 Senningerberg
Grand Duchy of Luxembourg
Registrar Robeco Luxembourg S.A.
(until 23 April 2019 delegated to:)
RBC Investor Services Bank S.A.
14, Porte de France
L-4360 Esch-sur-Alzette
Grand Duchy of Luxembourg
(since 23 April 2019 delegated to:)
J.P. Morgan Bank Luxembourg S.A.
6, route de Trèves
L-2633 Senningerberg
Grand Duchy of Luxembourg
Robeco Capital Growth Funds 4
General Information (continued)
Investment Adviser Robeco Luxembourg S.A.
Delegated to:
Robeco Institutional Asset Management B.V. (‘RIAM’)
Weena 850, NL-3014 DA Rotterdam, The Netherlands
Sub Delegated Portfolio Managers Boston Partners Global Investors Inc.
One Grand Central Place
60 East 42nd Street
Suite 1550
New York, NY 10165
United States
Robeco Hong Kong Ltd
2704-07, 27F
Man Yee Building
68 Des Voeux Road Central
Central, Hong Kong
RobecoSAM A.G.
Josefstrasse 218
8005 Zurich, Switzerland
Subscriptions and publications No subscription can be accepted on the basis of financial reports such as this report. Subscriptions may only be accepted on the basis of
the current prospectus, supplemented by the Company’s latest annual report, and in the event that the Company’s annual report has been
published more than eight months previously, its latest semi-annual report. Financial reports, the prospectus and Key Investor
Information Document are available in through the website www.robeco.com and may be obtained free of charge at the Company’s
registered office.
Representative and paying agent in Switzerland ACOLIN Fund Services AG, Leutschenbachstrasse 50, CH-8050 Zürich, is the fund’s representative in Switzerland. Copies of the Key
Investor Information Document and prospectus, articles of incorporation, (semi) annual reports and a list of all purchases and sales in the
investment portfolio during the reporting period are available from the above address free of charge. UBS Switzerland A.G.,
Bahnhofstrasse 45, CH-8001 Zurich (Postal address Badenerstrasse 574, Postfach, CH-8098 Zürich) is the Company’s paying agent in
Switzerland.
Information service in Germany Copies of the articles of incorporation, Key Investor Information Document and prospectus and the annual and semi-annual reports may
be obtained free of charge from the offices of the information service in Germany: Robeco Deutschland, Taunusanlage 17, D-60325
Frankfurt am Main. The prices at which shares are issued and repurchased are published on www.robeco.de. A list of all purchases and
sales in the Company’s investment portfolio during the reporting period is available at the paying agent/information service in Germany
free of charge.
Representative in Hong Kong RBC Investor Services Trust Hong Kong Ltd, 51st Floor Central Plaza, 18 Harbour Road, Wanchai, Hong Kong (until 23 April 2019).
JPMorgan Chase Bank, N.A. Hong Kong Branch, 21/F, JP Morgan Tower 138 Shatin Rural Committee Road, Shatin, New Territories,
Hong Kong (since 23 April 2019).
Representative in Taiwan Nomura Asset management Taiwan Ltd -30F, No.7, Sec. 5, Xinyi Road, Taipei 110,Taiwan.
Language versions This report is also published in German as a Teilbericht für die Schweiz, containing only the sub-funds that are registered in Switzerland.
Only the English edition is binding and will be submitted to the general meeting of shareholders.
Robeco Where reference is made to ‘Robeco’, it should be read RIAM including the activities of the other entities which are in the scope of
Robeco’s management.
Robeco Capital Growth Funds 5
Report of the Board of Directors
General
Website An information update on the sub-fund’s investment policies, returns and investment portfolio can be found on
www.robeco.com/luxembourg.
Market Impact Robeco Luxembourg S.A. considers the COVID-19 (Corona) Pandemic as a significant event after closing the Annual Reports 2019 of
the Investment Funds under management. The impact of the pandemic on people, companies and the economy at large cannot be
assessed in full depth at this stage. However, the impact may have a downward effect on the performance. Measures to mitigate the
immediate operational risks are in place. Additional measures are dependent on our own assessments and the response of the authorities.
Our operational measures for business continuity In response to the Covid-19 outbreak, Robeco is constantly monitoring the latest developments and has taken all measures necessary to
manage the situation and to ensure business continuity. Our operational measures and capabilities are such that Robeco remains fully
functional in managing client portfolios and serving clients. Our systems and platforms are designed to enable our staff, most of whom
are working from home, to operate as normal. Our approach is one of vigilance and flexibility, allowing us to implement new or revised
measures smoothly and as necessary to ensure the health and safety of our staff while maintaining business continuity.
Outsourcing part of the operational activities to J.P. Morgan In April 2019, the Company appointed J.P. Morgan Bank Luxembourg S.A. as its transfer agent. This appointment was part of an
outsourcing process, which started early 2018.
Sub-fund name changes
Old sub-fund name New sub-fund name Effective date
Robeco Global Stars Equities Robeco Sustainable Global Stars Equities 28/06/2019
Robeco QI Customized Enhanced Index Equities I
Robeco QI Customized Emerging Markets Enhanced Index
Equities I 25/10/2019
RobecoSAM Sustainable European Equities Robeco Sustainable European Stars Equities 28/06/2019
Robeco Property Equities Robeco Sustainable Property Equities 25/10/2019
Robeco Global Growth Trends Equities Robeco MegaTrends 25/10/2019
Robeco Global Industrial Innovation Equities Robeco Digital Innovations 25/10/2019
Robeco Credits Income RobecoSAM SDG Credit Income 28/06/2019
Robeco Euro Sustainable Credits RobecoSAM Euro SDG Credits 28/06/2019
New sub-funds
Sub-Fund Effective date
Robeco Sustainable Emerging Stars Equities 05/09/2019
Robeco QI Emerging Markets Sustainable Enhanced Index Equities 05/09/2019
Robeco QI Global Multi-Factor Bonds 26/11/2019
RobecoSAM SDG High Yield Bonds 22/10/2019
Sub-funds closed
Sub-Fund Effective date
Robeco Emerging Opportunities Equities 19/06/2019
Robeco QI Asia-Pacific Active Equities 19/06/2019
Robeco Emerging Debt 20/05/2019
New share classes
Sub-fund Share class Effective date
Robeco BP Global Premium Equities I JPY 20/02/2019
Robeco Sustainable Global Stars Equities IL USD 26/11/2019
Robeco Emerging Markets Equities G GBP 18/06/2019
Robeco QI Emerging Markets Active Equities IE EUR 19/02/2019
Robeco QI Global Momentum Equities F GBP 25/09/2019
Robeco QI Global Developed Sustainable Enhanced Index Equities I USD 21/05/2019
Robeco QI Global Value Equities D EUR 05/02/2019
Robeco Capital Growth Funds 6
Report of the Board of Directors (continued)
General (continued)
New share classes (continued)
Sub-fund Share class Effective date
Robeco QI Global Value Equities F GBP 25/09/2019
Robeco QI Global Developed Active Equities G EUR 18/06/2019
Robeco Sustainable Emerging Stars Equities D EUR 05/09/2019
Robeco Sustainable Emerging Stars Equities D USD 05/09/2019
Robeco Sustainable Emerging Stars Equities F EUR 05/09/2019
Robeco Sustainable Emerging Stars Equities F USD 05/09/2019
Robeco Sustainable Emerging Stars Equities FL GBP 22/10/2019
Robeco Sustainable Emerging Stars Equities I EUR 05/09/2019
Robeco Sustainable Emerging Stars Equities I USD 05/09/2019
Robeco Sustainable Emerging Stars Equities KE EUR 05/09/2019
Robeco QI Emerging Markets Sustainable Enhanced Index Equities D EUR 05/09/2019
Robeco QI Emerging Markets Sustainable Enhanced Index Equities D USD 05/09/2019
Robeco QI Emerging Markets Sustainable Enhanced Index Equities F EUR 05/09/2019
Robeco QI Emerging Markets Sustainable Enhanced Index Equities F USD 05/09/2019
Robeco QI Emerging Markets Sustainable Enhanced Index Equities I EUR 05/09/2019
Robeco QI Emerging Markets Sustainable Enhanced Index Equities I USD 05/09/2019
Robeco QI Emerging Markets Sustainable Enhanced Index Equities Z CHF 05/09/2019
Robeco Sustainable European Stars Equities D USD 21/05/2019
Robeco Sustainable European Stars Equities F USD 21/05/2019
Robeco Sustainable European Stars Equities G GBP 21/05/2019
Robeco Sustainable European Stars Equities I GBP 21/05/2019
Robeco Sustainable European Stars Equities IE GBP 23/07/2019
Robeco Sustainable European Stars Equities M2 EUR 21/05/2019
Robeco BP US Premium Equities D2 USD 23/07/2019
Robeco BP US Select Opportunities Equities I GBP 17/12/2019
Robeco QI Chinese A-share Conservative Equities F EUR 19/02/2019
Robeco Sustainable Property Equities IE EUR 17/12/2019
Robeco Global Consumer Trends Equities D2 USD 23/07/2019
Robeco Global Consumer Trends Equities IE JPY 05/02/2019
Robeco Global Consumer Trends Equities M2H USD 05/02/2019
Robeco MegaTrends M2 EUR 20/02/2019
Robeco Global FinTech Equities DH CHF 20/02/2019
Robeco Global FinTech Equities IH EUR 05/02/2019
Robeco High Yield Bonds D2H USD 21/05/2019
Robeco High Yield Bonds DH SEK 05/02/2019
Robeco High Yield Bonds IBH CHF 20/02/2019
Robeco High Yield Bonds IH NOK 05/02/2019
Robeco High Yield Bonds IH SEK 05/02/2019
Robeco Global Credits FH CHF 05/02/2019
Robeco Global Credits IH JPY 05/02/2019
Robeco Global Credits ZH EUR 22/10/2019
Robeco QI Global Multi-Factor Bonds DH EUR 26/11/2019
Robeco QI Global Multi-Factor Bonds DH USD 26/11/2019
Robeco QI Global Multi-Factor Bonds FH EUR 26/11/2019
Robeco QI Global Multi-Factor Bonds FH USD 26/11/2019
Robeco QI Global Multi-Factor Bonds IH EUR 26/11/2019
Robeco QI Global Multi-Factor Bonds IH USD 26/11/2019
Robeco Global Credits – Short Maturity D2H USD 26/11/2019
Robeco Global Credits – Short Maturity D3H USD 22/10/2019
Robeco Global Credits – Short Maturity IH USD 26/11/2019
Robeco Global Credits – Short Maturity M2H USD 26/11/2019
Robeco Global Credits – Short Maturity M3H USD 22/10/2019
Robeco QI Global Multi-Factor High Yield IH GBP 20/02/2019
Robeco QI Global Multi-Factor High Yield Z EUR 12/02/2019
RobecoSAM SDG Credit Income BxH HKD 22/10/2019
RobecoSAM SDG Credit Income BxH SGD 22/10/2019
RobecoSAM SDG Credit Income D2H USD 18/06/2019
RobecoSAM SDG Credit Income D3H USD 18/06/2019
RobecoSAM SDG Credit Income DH EUR 17/12/2019
Robeco Capital Growth Funds 7
Report of the Board of Directors (continued)
General (continued)
New share classes (continued)
Sub-fund Share class Effective date
RobecoSAM SDG Credit Income EH USD 26/11/2019
RobecoSAM SDG Credit Income IEH USD 20/08/2019
RobecoSAM SDG Credit Income M2H EUR 20/02/2019
RobecoSAM SDG Credit Income M2H USD 18/06/2019
RobecoSAM SDG Credit Income M3H EUR 20/02/2019
RobecoSAM SDG Credit Income M3H USD 18/06/2019
RobecoSAM Global SDG Credits DH SEK 17/12/2019
RobecoSAM Global SDG Credits FH CHF 05/02/2019
RobecoSAM Global SDG Credits FH EUR 25/09/2019
RobecoSAM Global SDG Credits FH USD 25/09/2019
RobecoSAM Global SDG Credits GH GBP 25/09/2019
RobecoSAM Global SDG Credits IB JPY 05/02/2019
RobecoSAM Global SDG Credits IBH JPY 20/02/2019
RobecoSAM Global SDG Credits IE EUR 15/01/2019
RobecoSAM Global SDG Credits IEH GBP 25/09/2019
RobecoSAM Global SDG Credits IH CHF 21/05/2019
RobecoSAM Global SDG Credits IH GBP 20/02/2019
RobecoSAM Global SDG Credits Z EUR 12/02/2019
RobecoSAM SDG High Yield Bonds DH EUR 22/10/2019
RobecoSAM SDG High Yield Bonds DH USD 22/10/2019
RobecoSAM SDG High Yield Bonds FH EUR 22/10/2019
RobecoSAM SDG High Yield Bonds FH USD 22/10/2019
RobecoSAM SDG High Yield Bonds GH GBP 22/10/2019
RobecoSAM SDG High Yield Bonds IE EUR 22/10/2019
RobecoSAM SDG High Yield Bonds IEH GBP 22/10/2019
RobecoSAM SDG High Yield Bonds IH EUR 22/10/2019
RobecoSAM SDG High Yield Bonds IH USD 22/10/2019
RobecoSAM SDG High Yield Bonds ZH USD 22/10/2019
Robeco Euro Credit Bonds IH JPY 21/05/2019
Robeco European High Yield Bonds IMBXH USD 26/11/2019
Robeco European High Yield Bonds IMH USD 26/11/2019
Robeco European High Yield Bonds MBXH USD 26/11/2019
Robeco European High Yield Bonds Z2H EUR 20/08/2019
RobecoSAM Euro SDG Credits M2H EUR 21/05/2019
Robeco Financial Institutions Bonds IBH EUR 18/06/2019
Robeco QI Multi Factor Absolute Return ZH AUD 21/05/2019
Deactivated share classes
Sub-fund Share class Effective date
Robeco BP Global Premium Equities IB JPY 25/09/2019
Robeco BP Global Premium Equities Z USD 16/10/2019
Robeco BP Global Premium Equities ZB AUD 19/06/2019
Robeco QI Emerging Markets Active Equities Z EUR 28/03/2019
Robeco QI Emerging Conservative Equities Z EUR 19/07/2019
Robeco Emerging Markets Smaller Companies Equities F GBP 13/03/2019
Robeco Emerging Opportunities Equities D EUR 19/06/2019
Robeco Emerging Opportunities Equities F EUR 19/06/2019
Robeco Emerging Opportunities Equities I EUR 19/06/2019
Robeco Emerging Opportunities Equities I USD 19/06/2019
Robeco QI Global Developed Conservative Equities B EUR 25/06/2019
Robeco Sustainable European Stars Equities IE EUR 30/09/2019
Robeco QI European Conservative Equities D2 USD 26/03/2019
Robeco QI European Conservative Equities IM USD 13/03/2019
Robeco QI European Conservative Equities MH USD 26/04/2019
Robeco QI US Conservative Equities M2 USD 14/06/2019
Robeco Chinese Equities IBH EUR 01/04/2019
Robeco Capital Growth Funds 8
Report of the Board of Directors (continued)
General (continued)
Deactivated share classes (continued)
Sub-fund Share class Effective date
Robeco Chinese Equities IH EUR 02/05/2019
Robeco Chinese Equities IM USD 13/03/2019
Robeco Asian Stars Equities IL JPY 13/03/2019
Robeco BP US Large Cap Equities G EUR 13/03/2019
Robeco BP US Large Cap Equities G USD 02/12/2019
Robeco QI Asia-Pacific Active Equities D EUR 19/06/2019
Robeco QI Asia-Pacific Active Equities D USD 19/06/2019
Robeco QI Asia-Pacific Active Equities F EUR 19/06/2019
Robeco QI Asia-Pacific Active Equities F USD 19/06/2019
Robeco QI Asia-Pacific Active Equities I EUR 19/06/2019
Robeco QI Asia-Pacific Active Equities I USD 19/06/2019
Robeco Chinese A-share Equities I EUR 06/09/2019
Robeco QI Chinese A-share Conservative Equities Z AUD 25/09/2019
Robeco New World Financial Equities Z EUR 13/03/2019
Robeco Sustainable Property Equities IM USD 13/03/2019
Robeco Emerging Debt D EUR 20/05/2019
Robeco Emerging Debt D USD 20/05/2019
Robeco Emerging Debt F EUR 20/05/2019
Robeco Emerging Debt I USD 08/05/2019
Robeco Emerging Debt Z USD 20/05/2019
Robeco Global Credits 0IH EUR 20/03/2019
Robeco Global Credits IE USD 23/07/2019
Robeco QI Global Multi-Factor Credits IBH JPY 25/09/2019
Robeco Global Credits – Short Maturity IE EUR 25/09/2019
Robeco QI Global Multi-Factor High Yield IH USD 03/06/2019
Robeco QI Global Multi-Factor High Yield Z USD 09/12/2019
RobecoSAM SDG Credit Income ZH USD 04/12/2019
RobecoSAM Global SDG Credits IE EUR 27/12/2019
RobecoSAM SDG High Yield Bonds ZH USD 12/12/2019
Robeco Euro Government Bonds IEH EUR 23/07/2019
RobecoSAM Euro SDG Credits 0IH EUR 03/12/2019
Robeco Financial Institutions Bonds IBH HKD 30/01/2019
General introduction
Financial market environment 2019 was a paradoxical year for financial markets; excellent performances for equity and fixed income in an uncertain global
environment. The global economy in 2019 continued on the path of decelerating expansion that emerged in late 2018 on the back of
increasing geopolitical uncertainty. Persisting trade disputes between the US and China, the unpredictability around Brexit, protests in
Hong Kong and an increasingly divided political landscape in the US created an environment tough to navigate for global leaders and
investors alike. Global trade volumes declined below trend as retaliatory rounds of tariffs were put in place by the US and China,
especially hitting open, export-oriented economies with a strong manufacturing base. The deceleration in global economic growth was
therefore mainly concentrated in the manufacturing sector while the services sector remained fairly resilient. As 2019 unfolded, a
domestic slowdown in China began to affect Europe, notably the German economy where Germany’s car industry was already facing a
difficult transition towards cleaner forms of mobility. As a result, Germany narrowly escaped a technical recession in 2019. Overall,
global activity remained in expansion, with the global growth forecast reaching 3.0% in 2019 (IMF estimate).
Despite high levels of geopolitical risk, equity returns excellent over 2019, with the MSCI World unhedged in euro returning 30.0%. It
was also one of the most positive years since the global financial crisis for fixed income returns. There was a significant dovish shift in
Federal Reserve policy, which led to increased demand for both interest-rate and risk markets. Because of the Fed’s pause, followed by
rate cuts in the second half of the year, the environment remained supportive throughout 2019. Global government bonds (hedged to
euro) returned 4% while at the same time global corporate credit bonds (hedged to euro) returned 8.5%.
Robeco Capital Growth Funds 9
Report of the Board of Directors (continued)
General introduction (continued)
Financial market environment (continued) Global economic growth disappointed with regard to consensus expectations and slowed from 3.6% in 2018 to a notably lower pace of
3%. Alongside a slowdown in external demand, this softening in global activity was mainly due to a deterioration in global investment
expenditures, as signs of fading multilateralism and international cooperation weakened CEO confidence to undertake new global
investment projects. In advanced economies, capital expenditures slowed from 2.6% in 2018 to 1.8% in 2019 (IMF estimate),
concentrated in the US. In conjunction with lower investment demand, aggregate demand from the consumer side advanced at a lower
rate of growth as well in 2019.
Even as this period of US economic expansion has now become the longest post-WWII, consumption growth has remained significantly
below the average growth rate observed during previous US expansion phases. This is partly due to a clear household deleveraging post
great financial crisis. US nominal wage growth has picked up to around 3% but given that the US unemployment rate at 3.5% signals that
the US is experiencing the tightest labor market in the past 50 years, this level is still subdued. In most advanced economies, employment
numbers have increased (though overall at a more modest pace compared to 2018) and unemployment rates are now close to or at
cyclical lows. Household demand remains underpinned by a rising trend in real disposable incomes, increased housing wealth and
generally low interest rates.
Despite higher import tariffs in some countries, global inflation remained muted. As the global manufacturing slowdown led to higher
inventory-to-sales ratios, capacity utilization rates came down and as a result core inflation decelerated further below target for many
advanced economies and emerging markets. In the US, core PCE inflation (which excludes changes in consumer food and energy prices)
remained at 1.6%, below the symmetrical inflation target of 2% of the Fed. Inflation is increasingly influenced by global factors such as
global commodity prices, global slack, exchange rates and producer price competition.
In the UK, the debate around Brexit continued to be as unpredictable as it was in 2018, until Boris Johnson won the December general
election with a clear majority. The UK Prime Minister showed his intention to move the UK out of the EU by end of January 2020 by
signing the EU withdrawal bill. He also indicated he would limit the transitional period and not to seek an extension of the UK’s
transition away from the EU beyond 31 December 2020. Given the challenging timetable the UK government has set itself, the UK will
likely negotiate a minimum trade deal, concentrating on the trade in goods. As Johnson may opt to remove the self-imposed 31
December 2020 deadline, the chances of a no-deal ‘hard’ Brexit by the end of 2020 have diminished, but not vanished altogether.
In China and other emerging markets, weakness in domestic consumer spending dominated the strong decrease in external demand.
Chinese economic growth slowed to 6.1% in 2019. Debt, deleveraging and demographics are each influencing China’s domestic policy
agenda. Policy makers are undertaking a difficult balancing act to keep near-term growth around the 6% target while also trying to
remove excess leverage (overall non-financial corporate debt is around 250% of GDP) to keep the economy on a sustainable longer-term
path. China’s rapidly ageing society is also hampering its long-term potential growth.
Risk management
The presence of risks is inherent to the character of asset management. It is therefore very important to have a procedure for controlling
these risks embedded in the company's day-to-day operations. The manager (RoLux) ensures that risks are effectively controlled via the
three-lines-of-defense model: RoLux management (first line), the Compliance and Risk Management departments (second line) and the
Internal Audit department (third line).
The management of RoLux has primary responsibility for risk management as part of its day-to-day activities. The Compliance and Risk
Management departments develop and maintain policy, methods and systems that enable the management to fulfill their responsibilities
relating to risk. Furthermore, portfolios are monitored by these departments to ensure that they remain within the investment restrictions
under the Terms and Conditions for Management and Custody and the information memorandum, and to establish whether they comply
with the internal guidelines. The Risk Management Committee decides how the risk-management policies are applied and monitors
whether risks remain within the defined limits. The Group Internal Audit department carries out audits to assess the effectiveness of
internal control.
RoLux uses a risk-management and control framework that helps control 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. Management measures are included in the framework for each risk. Active monitoring is
performed to establish the effectiveness of the procedures and measures of this framework.
Robeco Capital Growth Funds 10
Report of the Board of Directors (continued)
Risk management (continued)
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 a key resource in this regard and
Robeco uses systems that can be seen as the market standard for financial institutions. The use of automation increases the IT risk. This
risk can be divided into three categories. The risk that unauthorized persons gain access is managed by means of preventive and detective
measures to control access to the network and to systems and data. Processes such as change management and operational management
ensure monitoring of a working system landscape. Lastly, business continuity measures are in place to limit the risk of breakdown as far
as possible and to restore operational effectiveness as soon as possible in the event of disaster. The effectiveness of these measures is
tested regularly both internally and externally.
Compliance risk Compliance risk is the risk of sanctions, financial loss or reputation damage as a result of non-compliance with the laws and regulations
applicable to the activities of Robeco and the funds it manages. Robeco's activities – collective and individual portfolio management –
are subject to European and national rules of financial supervision. Observance of these rules is supervised by the national competent
authorities (in Luxembourg the Commission de Surveillance du Secteur Financier (CSSF)). It is in the interest of investors in Robeco-
managed funds that Robeco complies with all the applicable laws and regulations. Robeco has implemented a meticulous process with
clear responsibilities in order to ensure that new laws and regulations are reported and implemented in a timely fashion.
Changes in the field of legislation and regulation that could affect the funds managed by Robeco also took place in 2019. An example of
this is the amended Shareholder Rights Directive (SRD II), which applies as of 10 June 2019. SRD II requires institutional investors and
asset managers to develop a policy on shareholder engagement and to disclose their voting and engagement policies in relation to its
strategies covering EU listed equities. Necessary changes to Robeco’s existing policies on these topics have been implemented in a
timely manner. Mandatory disclosures on these topics have been enhanced as well and these were made easily accessible to clients.
Robeco also ensured that its policies and procedures related to the prevention of use of the financial system for money laundering and the
financing of terrorism continue to be adequately designed. In 2019 policies and procedures were amended to reflect the requirements of
the Fifth Anti-Money Laundering Directive (5th AMLD). The amended Directive has introduced the obligation for Robeco to publicly
register the ultimate beneficial owners (‘UBOs’) of all its corporate entities and funds. For Luxembourg domiciled entities and funds,
registrations were completed before the deadline of 1 September 2019. In addition, solid enhanced due diligence measures with respect
to business relationships and transactions involving high risk countries were implemented in accordance with the 5th AMLD.
The EU Securitisation Regulation has introduced new obligations for investments in securitisations of which the securities are issued on
or after 1 January 2019. Based on these new rules, Robeco has adapted its processes for investments in securitisations in terms of initial
due diligence, ongoing monitoring, stress testing and internal reporting, in order to ensure that all risks arising from securitisations are
properly assessed to the benefit of end investors.
On 17 June 2019 EMIR Refit entered into force, amending the existing EMIR rules with the objective to simplify and increase the
efficiency of some of its requirements and to reduce disproportionate costs and burdens. The core EMIR requirements – clearing, margin
requirements, derivative transaction reporting, operational risk mitigation requirements and requirements for trade repositories/CCPs –
remain unchanged. For Robeco, the implementation of EMIR Refit in particular related to the introduction of a new category of financial
counterparty known as the small financial counterparty (SFC). Such SFC - whose OTC derivatives positions do not exceed any of the
clearing thresholds - can under certain circumstances be exempted from the clearing obligation under EMIR. Robeco has decided not to
benefit from such exemption and will continue clearing of the relevant instruments for all its funds.
Developments Financial Risk Management Robeco is continuously working to enhance its risk management methodologies, infrastructure and processes.
Over the past year, Financial Risk Management (FRM) continued with the modeling of climate risks and the integration of climate
models in the risk management framework and risk management systems. These models aim to incorporate both current carbon
emissions as well as forward looking based elements, such as investments in carbon footprint reduction. These analyses are done based
on RobecoSAM data. In addition, FRM is collaborating with its risk management system vendor to further complement the framework
with physical climate risks assets are exposed to, such as the risk of flooding, extreme heat waves or droughts.
FRM has successfully enhanced and implemented tooling to conduct style factor analysis based on Barra factors. The results of these
analyses and the climate risk results are both used in portfolio risk deep dive sessions with portfolio management.
Securities lending is transferred to JPMorgan as the new lending agent. In 2019 risk management integrated securities lending data
(collateral, securities) in the Robeco collateral management systems to have an integrated view on counterparty exposures.
During the year several projects took place in which FRM participated. This included enhancement of the Model Risk Management,
Brexit and a transition towards new benchmark rates (IBOR).
Robeco Capital Growth Funds 11
Report of the Board of Directors (continued)
Global Equity sub-funds
Investment results
Notes
Investment
result
reporting
period in
%
Benchmark
return
reporting
period in
%
Investment
result 3
years
average or
since
inception
Benchmark
return 3
years
average or
since
inception
Index
Robeco BP Global Premium Equities B EUR shares
1
21.8
30.0
4.8
10.3
MSCI World Index (Net Return (in EUR)
C EUR shares
1
22.5
30.0
5.4
10.3
MSCI World Index (Net Return (in EUR)
D EUR shares
21.8
30.0
4.8
10.3
MSCI World Index (Net Return (in EUR)
F EUR shares
22.5
30.0
5.4
10.3
MSCI World Index (Net Return (in EUR)
I EUR shares
22.6
30.0
5.5
10.3
MSCI World Index (Net Return (in EUR)
IB EUR shares
1,4
22.6
30.0
4.5
12.6
MSCI World Index (Net Return (in EUR)
M2 EUR shares
4
20.2
30.0
3.5
11.1
MSCI World Index (Net Return (in EUR)
DH EUR shares 4
16.7
24.6
3.7
9.4
MSCI World Index (Net Return hedged into
EUR)
FH EUR shares 4
17.3
24.6
-0.0
6.2
MSCI World Index (Net Return hedged into
EUR)
IH EUR shares 4
17.6
24.6
4.5
9.4
MSCI World Index (Net Return hedged into
EUR)
M2H EUR shares 4
15.3
24.6
-2.7
6.9
MSCI World Index (Net Return hedged into
EUR)
ZB AUD shares
3
14.3
18.9
11.6
14.7
MSCI World Index (Net Return (in AUD)
F GBP shares
15.2
22.7
5.2
10.0
MSCI World Index (Net Return (in GBP)
I GBP shares
15.2
22.7
5.2
10.0
MSCI World Index (Net Return (in GBP)
IB GBP shares
1
15.2
22.7
5.2
10.0
MSCI World Index (Net Return (in GBP)
I JPY shares
2
6.7
13.0
MSCI World Index (Net Return) (JPY)
IB JPY shares
3
9.8
15.6
-8.3
-0.7
MSCI World Index (Net Return) (JPY)
D USD shares
19.5
27.7
7.0
12.6
MSCI World Index (Net Return (in USD))
D2 USD shares
19.2
27.7
6.7
12.6
MSCI World Index (Net Return (in USD))
E USD shares
1
19.5
27.7
7.0
12.6
MSCI World Index (Net Return (in USD))
F USD shares
20.3
27.7
7.7
12.6
MSCI World Index (Net Return (in USD))
I USD shares
20.3
27.7
7.7
12.6
MSCI World Index (Net Return (in USD))
M USD shares
18.3
27.7
5.9
12.6
MSCI World Index (Net Return (in USD))
Z USD shares
3
14.2
18.5
-1.4
4.3
MSCI World Index (Net Return (in USD))
DH USD shares
20.3
28.4
6.9
12.6
MSCI World Index (Net Return hedged into
USD)
Robeco QI Global Conservative Equities
B EUR shares 1
25.9
28.9
7.5
10.1
MSCI All Country World Index (Net Return)
(EUR)
C EUR shares 1
26.5
28.9
8.1
10.1
MSCI All Country World Index (Net Return)
(EUR)
D EUR shares
25.9
28.9
7.5
10.1
MSCI All Country World Index (Net Return)
(EUR)
F EUR shares
26.5
28.9
8.0
10.1
MSCI All Country World Index (Net Return)
(EUR)
I EUR shares
26.6
28.9
8.1
10.1
MSCI All Country World Index (Net Return)
(EUR)
M2 EUR shares 4
24.9
28.9
13.1
12.6
MSCI All Country World Index (Net Return)
(EUR)
Z EUR shares
27.4
28.9
8.8
10.1
MSCI All Country World Index (Net Return)
(EUR)
IH EUR shares
20.6
24.1
7.5
9.7
MSCI All Country World Index (Net Return)
(hedged into EUR)
Robeco Capital Growth Funds 12
Report of the Board of Directors (continued)
Global Equity sub-funds (continued)
Investment results
Notes
Investment
result
reporting
period in
%
Benchmark
return
reporting
period in
%
Investment
result 3
years
average or
since
inception
Benchmark
return 3
years
average or
since
inception
Index
F GBP shares
18.9
21.7
7.8
9.9
MSCI All Country World Index (Net Return)
(GBP)
D USD shares
23.6
26.6
9.8
12.4
MSCI All Country World Index (Net Return)
(USD)
I USD shares
24.2
26.6
10.3
12.4
MSCI All Country World Index (Net Return)
(USD)
Z USD shares
25.0
26.6
11.0
12.4
MSCI All Country World Index (Net Return)
(USD)
Robeco Sustainable Global Stars Equities
D EUR shares
31.3
30.0
11.1
10.3
MSCI World Index (Net Return) (EUR)
F EUR shares
31.9
30.0
11.7
10.3
MSCI World Index (Net Return) (EUR)
IL EUR shares 31.9 30.0 11.6 10.3 MSCI World Index (Net Return) (EUR)
Z EUR shares
33.2
30.0
12.7
10.3
MSCI World Index (Net Return) (EUR)
IL USD shares
2
4.0
2.9
MSCI World Index (Net Return) (USD)
Robeco Emerging Stars Equities
D EUR shares
28.7
20.6
9.1
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
DL EUR shares
28.4
20.6
8.8
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
E EUR shares 1
28.7
20.6
9.3
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
F EUR shares
29.3
20.6
9.8
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
FL EUR shares 4
29.4
20.6
7.5
6.4
MSCI Emerging Markets Index (Net Return)
(EUR)
G EUR shares 4
29.2
20.6
5.7
4.7
MSCI Emerging Markets Index (Net Return)
(EUR)
I EUR shares
29.3
20.6
9.9
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
IE EUR shares 4
28.8
20.6
22.7
19.1
MSCI Emerging Markets Index (Net Return)
(EUR)
Z EUR shares
30.9
20.6
10.9
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
F GBP shares
21.5
13.9
9.5
9.0
MSCI Emerging Markets Index (Net Return)
(GBP)
G GBP shares 1
21.8
13.9
9.6
9.0
MSCI Emerging Markets Index (Net Return)
(GBP)
IL GBP shares
21.7
13.9
9.5
9.0
MSCI Emerging Markets Index (Net Return)
(GBP)
KE GBP shares 4
21.7
13.9
9.3
3.6
MSCI Emerging Markets Index (Net Return)
(GBP)
D USD shares
26.4
18.4
11.7
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
DL USD shares 4
26.1
18.4
6.8
6.6
MSCI Emerging Markets Index (Net Return)
(USD)
F USD shares
26.9
18.4
12.1
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
FL USD shares
27.0
18.4
12.0
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
I USD shares
27.0
18.4
12.1
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
Robeco Capital Growth Funds 13
Report of the Board of Directors (continued)
Global Equity sub-funds (continued)
Investment results
Notes
Investment
result
reporting
period in
%
Benchmark
return
reporting
period in
%
Investment
result 3
years
average or
since
inception
Benchmark
return 3
years
average or
since
inception
Index
IL USD shares
27.1
18.4
12.0
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
KE USD shares 1
27.1
18.4
12.0
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
ML USD shares
25.7
18.4
10.8
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
Robeco Emerging Markets Equities
D EUR shares
28.2
20.6
9.8
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
F EUR shares
29.1
20.6
10.6
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
I EUR shares
29.2
20.6
10.7
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
M EUR shares
27.5
20.6
9.3
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
M2 EUR shares 4
26.9
20.6
11.2
9.0
MSCI Emerging Markets Index (Net Return)
(EUR)
G GBP shares 2
6.6
4.7
MSCI Emerging Markets Index (Net Return)
(GBP)
D USD shares
25.8
18.4
12.1
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
F USD shares
26.7
18.4
12.9
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
I USD shares
26.8
18.4
13.0
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
IM USD shares 4
26.5
18.4
5.6
4.6
MSCI Emerging Markets Index (Net Return)
(USD)
J USD shares
26.8
18.4
13.0
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
M USD shares
25.2
18.4
11.6
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
Robeco QI Emerging Markets Active Equities
D EUR shares
21.0
20.6
8.8
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
E EUR shares 1
21.0
20.6
8.7
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
F EUR shares
21.7
20.6
9.4
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
G EUR shares 1,4
21.7
20.6
0.1
1.4
MSCI Emerging Markets Index (Net Return)
(EUR)
I EUR shares
21.7
20.6
9.5
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
IE EUR shares 2
9.7
11.3
MSCI Emerging Markets Index (Net Return)
(EUR)
Z EUR shares 3
12.1
10.5
13.8
11.1
MSCI Emerging Markets Index (Net Return)
(EUR)
D USD shares
18.7
18.4
11.0
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
I USD shares
19.5
18.4
11.7
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
Robeco Capital Growth Funds 14
Report of the Board of Directors (continued)
Global Equity sub-funds (continued)
Investment results
Notes
Investment
result
reporting
period in
%
Benchmark
return
reporting
period in
%
Investment
result 3
years
average or
since
inception
Benchmark
return 3
years
average or
since
inception
Index
Robeco QI Global Momentum Equities
D EUR shares
25.5
28.9
7.8
10.1
MSCI All Countries World (Net Return)
(EUR)
F EUR shares
26.2
28.9
8.4
10.1
MSCI All Countries World (Net Return)
(EUR)
I EUR shares
26.2
28.9
8.4
10.1
MSCI All Countries World (Net Return)
(EUR)
Z EUR shares
27.0
28.9
9.1
10.1
MSCI All Countries World (Net Return)
(EUR)
F GBP shares 2
-0.1
1.7
MSCI All Countries World (Net Return)
(GBP)
Robeco QI Global Developed Sustainable Enhanced Index Equities
D EUR shares
28.0
30.0
8.5
10.3
MSCI World Index (Net Return in EUR)
F EUR shares
28.2
30.0
8.7
10.3
MSCI World Index (Net Return in EUR)
I EUR shares
28.4
30.0
8.9
10.3
MSCI World Index (Net Return in EUR)
Z EUR shares
28.9
30.0
9.3
10.3
MSCI World Index (Net Return in EUR)
IH EUR shares
22.9
24.6
8.2
9.7
MSCI World Index (Net Return) (hedged
into EUR)
I CHF shares
4
24.0
25.4
9.2
11.4
MSCI World Index (Net Return in CHF)
I USD shares
2
11.3
12.5
MSCI World Index (Net Return in USD)
Robeco QI Emerging Markets Enhanced Index Equities
D EUR shares 4
19.7
20.6
5.4
6.1
MSCI Emerging Markets Index (Net Return)
(EUR)
F EUR shares 4
20.2
20.6
5.8
6.1
MSCI Emerging Markets Index (Net Return)
(EUR)
Z EUR shares
20.8
20.6
9.9
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
I USD shares
18.0
18.4
11.6
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
Robeco QI Emerging Conservative Equities
B EUR shares
1
16.9
20.6
7.5
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
C EUR shares
1
17.6
20.6
8.2
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
D EUR shares
16.9
20.6
7.5
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
F EUR shares
17.6
20.6
8.1
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
I EUR shares
17.7
20.6
8.2
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
IE EUR shares
1
17.7
20.6
8.2
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
Z EUR shares
3
14.9
13.0
9.3
8.2
MSCI Emerging Markets Index (Net Return)
(EUR)
ZB AUD shares
1 16.5 18.6 12.4 12.7 MSCI Emerging Markets Index (Net Return)
(AUD)
C GBP shares
4
10.6
13.9
5.7
5.7
MSCI Emerging Markets Index (Net Return)
(GBP)
D GBP shares
9.9
13.9
7.2
9.0
MSCI Emerging Markets Index (Net Return)
(GBP)
Robeco Capital Growth Funds 15
Report of the Board of Directors (continued)
Global Equity sub-funds (continued)
Investment results
Notes
Investment
result
reporting
period in
%
Benchmark
return
reporting
period in
%
Investment
result 3
years
average or
since
inception
Benchmark
return 3
years
average or
since
inception
Index
F GBP shares
10.6
13.9
7.9
9.0
MSCI Emerging Markets Index (Net Return)
(GBP)
G GBP shares
1
10.6
13.9
7.9
9.0
MSCI Emerging Markets Index (Net Return)
(GBP)
I GBP shares
10.6
13.9
7.9
9.0
MSCI Emerging Markets Index (Net Return)
(GBP)
B USD shares
1
14.8
18.4
9.7
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
C USD shares
1
15.5
18.4
10.4
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
D USD shares
14.8
18.4
9.7
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
D2 USD shares
14.5
18.4
9.5
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
F USD shares
15.5
18.4
10.4
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
G USD shares
1
15.5
18.4
10.4
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
I USD shares
15.5
18.4
10.5
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
M USD shares
13.9
18.4
8.9
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
Robeco Emerging Markets Smaller Companies Equities
D EUR shares
16.5
15.2
4.6
7.7
MSCI Emerging Markets Mid Cap Index
(Net Return) (EUR)
F EUR shares
17.6
15.2
5.5
7.7
MSCI Emerging Markets Mid Cap Index
(Net Return) (EUR)
I EUR shares
17.6
15.2
5.5
7.7
MSCI Emerging Markets Mid Cap Index
(Net Return) (EUR)
F GBP shares
3
5.4
3.6
7.5
9.5
MSCI Emerging Markets Mid Cap Index
(Net Return) (GBP)
D USD shares
14.4
13.1
6.8
9.9
MSCI Emerging Markets Mid Cap Index
(Net Return) (USD)
I USD shares
15.5
13.1
7.8
9.9
MSCI Emerging Markets Mid Cap Index
(Net Return) (USD)
Z USD shares
16.6
13.1
8.8
9.9
MSCI Emerging Markets Mid Cap Index
(Net Return) (USD)
Robeco QI Global Value Equities
D EUR shares 2
4.2
18.1
MSCI AC World Index (EUR)
F EUR shares
17.4
28.9
4.4
10.1
MSCI AC World Index (EUR)
I EUR shares
17.5
28.9
4.4
10.1
MSCI AC World Index (EUR)
Z EUR shares
18.2
28.9
5.1
10.1
MSCI AC World Index (EUR)
F GBP shares 2
3.0
1.7
MSCI AC World Index (GBP)
Robeco QI Global Developed Multi-Factor Equities
D EUR shares
22.8
30.0
6.1
10.3
MSCI World Standard Index (Net Return)
(EUR)
I EUR shares
23.4
30.0
6.6
10.3
MSCI World Standard Index (Net Return)
(EUR)
Robeco Capital Growth Funds 16
Report of the Board of Directors (continued)
Global Equity sub-funds (continued)
Investment results
Notes
Investment
result
reporting
period in
%
Benchmark
return
reporting
period in
%
Investment
result 3
years
average or
since
inception
Benchmark
return 3
years
average or
since
inception
Index
D USD shares
20.6
27.7
8.3
12.6
MSCI World Standard Index (Net Return)
(USD)
I USD shares
21.2
27.7
8.9
12.6
MSCI World Standard Index (Net Return)
(USD)
Robeco QI Global Developed Conservative Equities ex Japan
I JPY shares
23.8
27.2
7.6
10.3
MSCI Kokusai (World Ex-Japan)
Robeco QI Emerging Markets Sustainable Active Equities
D EUR shares
4
19.4
20.6
6.0
5.6
MSCI Emerging Markets Index (Net Return)
(EUR)
F EUR shares
4
20.0
20.6
6.5
5.6
MSCI Emerging Markets Index (Net Return)
(EUR)
I EUR shares
20.1
20.6
11.0
9.3
MSCI Emerging Markets Index (Net Return)
(EUR)
Z EUR shares
4
20.9
20.6
4.4
4.4
MSCI Emerging Markets Index (Net Return)
(EUR)
I AUD shares
4
18.0
18.6
3.6
4.7
MSCI Emerging Markets Index (Net Return)
(AUD)
I USD shares
17.9
18.4
13.3
11.6
MSCI Emerging Markets Index (Net Return)
(USD)
Robeco QI Global Developed Conservative Equities
B EUR shares 1,3
15.7
16.7
5.4
10.8
MSCI World Index (EUR)
D EUR shares
23.6
30.0
6.4
10.3
MSCI World Index (EUR)
I EUR shares
24.3
30.0
6.4
10.3
MSCI World Index (EUR)
IH EUR shares 4
18.9
24.6
6.4
9.0
MSCI World Index (EUR)
B CAD shares 1,4
15.4
21.2
8.0
12.3
MSCI World Index (CAD)
I JPY shares
20.1
26.5
6.1
10.0
MSCI World Index (JPY)
D USD shares
21.3
27.7
8.1
12.6
MSCI World Index (USD)
I USD shares
22.0
27.7
8.6
12.6
MSCI World Index (USD)
Robeco QI Global Developed Active Equities
G EUR shares 2
8.4
10.2
MSCI World Index (Net Return) (EUR)
I EUR shares 4
21.1
30.0
5.4
13.9
MSCI World Index (Net Return) (EUR)
Robeco QI Customized Emerging Markets Enhanced Index Equities I
Z USD shares
23.0
23.6
11.6
11.8
Composite, 80% MSCI World Index (Net
Return) + 20% MSCI Emerging Markets (Net
Return) (USD)
Robeco QI Global Quality Equities
D EUR shares
27.9
28.9
9.6
10.1
MSCI All Countries World Index (Net
Return) (EUR)
F EUR shares
28.5
28.9
10.1
10.1
MSCI All Countries World Index (Net
Return) (EUR)
I EUR shares
28.4
28.9
10.1
10.1
MSCI All Countries World Index (Net
Return) (EUR)
I USD shares
4
26.2
26.6
11.7
11.8
MSCI All Countries World Index (Net
Return) (USD)
Robeco Capital Growth Funds 17
Report of the Board of Directors (continued)
Global Equity sub-funds (continued)
Investment results
Notes
Investment
result
reporting
period in
%
Benchmark
return
reporting
period in
%
Investment
result 3
years
average or
since
inception
Benchmark
return 3
years
average or
since
inception
Index
Robeco QI Global Sustainable Conservative Equities
D EUR shares
25.4
28.9
8.1
10.1
MSCI All Countries World Index (Net
Return) (EUR)
F EUR shares
26.0
28.9
8.6
10.1
MSCI All Countries World Index (Net
Return) (EUR)
I EUR shares
26.1
28.9
8.7
10.1
MSCI All Countries World Index (Net
Return) (EUR)
Z EUR shares
4
26.9
28.9
11.0
10.8
MSCI All Countries World Index (Net
Return) (EUR)
I USD shares
4
23.7
26.6
10.4
11.8
MSCI All Countries World Index (Net
Return) (USD)
Robeco QI Global Developed Enhanced Index Equities
D EUR shares 4
27.5
30.0
10.6
12.6
MSCI World Index (EUR)
F EUR shares 4
27.8
30.0
10.9
12.6
MSCI World Index (EUR)
I EUR shares 4
27.9
30.0
11.0
12.6
MSCI World Index (EUR)
I JPY shares 4
23.5
26.5
5.4
8.0
MSCI World Index (JPY)
D USD shares 4
25.1
27.7
7.9
9.9
MSCI World Index (USD)
F USD shares 4
25.4
27.7
8.2
9.9
MSCI World Index (USD)
I USD shares 4
25.6
27.7
8.3
9.9
MSCI World Index (USD)
Robeco Sustainable Emerging Stars Equities
D EUR shares
2
10.4
10.0
MSCI Emerging Markets Index (Net Return)
(EUR)
F EUR shares
2
10.7
10.0
MSCI Emerging Markets Index (Net Return)
(EUR)
I EUR shares
2
10.7
10.0
MSCI Emerging Markets Index (Net Return)
(EUR)
KE EUR shares
2
10.7
10.0
MSCI Emerging Markets Index (Net Return)
(EUR)
FL GBP shares
2
6.5
5.4
MSCI Emerging Markets Index (Net Return)
(GBP)
D USD shares
2
12.3
11.8
MSCI Emerging Markets Index (Net Return)
(USD)
F USD shares
2
12.5
11.8
MSCI Emerging Markets Index (Net Return)
(USD)
I USD shares
2
12.5
11.8
MSCI Emerging Markets Index (Net Return)
(USD)
Robeco QI Emerging Markets Sustainable Enhanced Index Equities
D EUR shares
2
9.1
10.0
MSCI Emerging Markets Index (Net Return)
(EUR)
F EUR shares
2
9.2
10.0
MSCI Emerging Markets Index (Net Return)
(EUR)
I EUR shares
2
9.2
10.0
MSCI Emerging Markets Index (Net Return)
(EUR)
Z CHF shares
2
9.2
9.8
MSCI Emerging Markets Index (Net Return)
(CHF)
D USD shares
2
10.9
11.8
MSCI Emerging Markets Index (Net Return)
(USD)
F USD shares
2
11.0
11.8
MSCI Emerging Markets Index (Net Return)
(USD)
Robeco Capital Growth Funds 18
Report of the Board of Directors (continued)
Global Equity sub-funds (continued)
Investment results
Notes
Investment
result
reporting
period in
%
Benchmark
return
reporting
period in
%
Investment
result 3
years
average or
since
inception
Benchmark
return 3
years
average or
since
inception
Index
I USD shares
2
11.1
11.8
MSCI Emerging Markets Index (Net Return)
(USD)
Robeco Emerging Opportunities Equities
D EUR shares
3
10.7
10.7
7.9
9.7
MSCI Emerging Markets Index (Net Return)
(EUR)
F EUR shares
3
11.0
10.7
8.7
9.8
MSCI Emerging Markets Index (Net Return)
(EUR)
I EUR shares
3
11.1
10.7
8.8
9.8
MSCI Emerging Markets Index (Net Return)
(EUR)
I USD shares
3
8.9
8.6
9.1
10.1
MSCI Emerging Markets Index (Net Return)
(USD)
1 Assuming reinvestment of the distributed dividend. 2 Share class activated in reporting period. See table on page 6 to 8. 3 Share class deactivated in reporting period. See table on page 8 to 9. 4 3 year performance since inception/until deactivation.
Performance analysis
Robeco BP Global Premium Equities The sub-fund trailed the core MSCI World Index in a year where growth easily defeated value. Most winners had strong sales or price
momentum. The key sectors of note were energy, technology and finance. In energy, the sub-fund is overweight its index along with a tilt
towards higher beta, which lagged. In technology, the index posted very strong returns, mainly generated through highly priced
technology businesses that are too expensive for the sub-fund’s philosophy and process. Finally, in finance a mix of US insurance and
European banking led to the performance shortfall. We will continue to examine various sectors and regions to identify the stock-specific
opportunities where price and fair value dislocations appear. With respect to sustainable investing (SI), we qualitatively capture a range
of ESG factors which directly and indirectly affect our decision making during the course of our characteristic-based investment process.
Robeco QI Global Conservative Equities 2019 turned out to be a great year for investors in global equities. Despite a long list of events causing uncertainty – such as the looming
trade war between the US and China – the market climbed the wall of worries, supported by high returns for technology stocks.
Measured in euro terms, the MSCI AC World Index experienced ten positive months. Only in May and August did the heightened trade
war result in turbulent and negative markets, with low-risk stocks showed their merits by achieving a significantly lower drawdown.
However, low-risk stocks lagged the market overall in 2019 as the MSCI AC World Index in euro terms rose an impressive 28.9%. In US
dollar terms, the index rose 26.6%.
With regards to sector exposure, the underweight in cyclical technology and consumer stocks resulted in a lower relative return for the
sub-fund, while the underweight in energy stocks had a positive impact. These exposures are the result of our bottom-up stock selection
process, which prefers attractively valued low-risk stocks with a high payout yield and positive momentum. Moreover, as growth stocks
such as technology stocks outperformed the broader market and value-like energy stocks lagged, the value factor experienced a negative
year. Also, high dividend stocks in the US significantly lagged the market.
This sub-fund is characterized by generally having lower absolute risk than its reference index, while having a higher relative risk as the
strategy deviates considerably from its reference index, the MSCI AC World Index.
Robeco Sustainable Global Stars Equities (formerly Robeco Global Stars Equities) The last year of the decade closed on a high, making 2019 the best performing year of the 2010s. The Sustainable Global Stars equity
fund rose nearly 33% in 2019, 2.2% more than the market index. The largest relative contributors to the portfolio were the
communication services and the industrials sector. The biggest contributor was Charter Communications which rose no less than 74%.
We added several new, promising holdings to our fund. Firstly Neste, a Finnish oil refinery which is the largest biofuel refiner in the
world and a pioneer in the field of renewable fuels. As the transition to electric vehicles isn’t happening overnight, especially not within
heavy transportation, the role of alternative fuels or next generation biofuels are crucial in keeping carbon emissions as low as possible.
Neste is a clear example of a strong ESG strategy having a positive impact on both revenue growth and margins.
Robeco Capital Growth Funds 19
Report of the Board of Directors (continued)
Global Equity sub-funds (continued)
Performance analysis (continued)
Robeco Emerging Stars Equities In 2019, emerging equity markets rose by 21% in euro terms, but underperformed developed markets. The sub-fund significantly
outperformed the MSCI Emerging Markets Index thanks to positive stock selection results in China, India, Brazil, Indonesia, Hungary,
Taiwan, South Africa and Mexico, and thanks to a strong country allocation result. The largest change in the portfolio was a reduction in
the weight for South Korea. We also sold our position in Peru while increasing positions in China and Brazil. We entered a new position
in Turkey. The fund maintained its investment policy, which combines active country allocation, stock selection based on fundamental
research which is supported by quantitative models, and includes ESG factors to a significant extent. During the year, the fund added to
the growing gas distribution sector in China and India, which is gradually replacing the more pollutive thermal coal.
Robeco Emerging Markets Equities Emerging equity markets rose significantly though underperformed developed equity markets. The sub-fund substantially outperformed
the MSCI Emerging Markets Index, mainly thanks to the positive stock selection results in Greater China, India, Korea, Brazil and South
Africa, with country allocation contributing positively as well. The fund added to China and Brazil, bought a new position in Turkey, and
reduced exposure to South Korea and India. The fund stayed true to its investment policy, which combines active country allocation,
stock selection based on fundamental research which is supported by quantitative models, and includes ESG factors to a significant
extent. The team assesses shareholder, board, management, government and environmental factors on a case-by-case basis. Input from
RobecoSAM sustainability investing analysts is used to further integrate ESG factors into the investment process. During the year, the
fund added to gas distribution in China and India, which is gradually replacing the more pollutive thermal coal.
Robeco QI Emerging Markets Active Equities The investment objective of the sub-fund is to outperform its index, the MSCI Emerging Markets Index, with the aid of a quantitative
stock selection model. Using a combination of factors (value, quality, momentum and analyst revisions), the model identifies broad
groups of stocks that are likely to outperform in the long run. The sub-fund’s relative performance was positive. The momentum factor
contributed positively, while the value and quality factors contributed negatively to the sub-fund’s relative performance. The analyst
revisions factors performed in line with the index. The volatility of the sub-fund was in line with the volatility of its index, with a
medium level of active risk. Sustainability, based on RobecoSAM scores, is integrated into the investment policy of the sub-fund. The
portfolio construction process is highly disciplined and ensures that the overall sustainability score of the portfolio is better than or equal
to the overall sustainability score of the index.
Robeco QI Global Momentum Equities The investment objective of the sub-fund is to outperform the MSCI All Country World Index by using a quantitative stock selection
model. The model identifies broad groups of stocks that have positive momentum characteristics, while at the same time taking
valuation, quality and low-risk characteristics into account.
The sub-fund underperformed its index in a rising market. The momentum factor had the largest negative contribution to the performance
of the fund. Controlling for valuation, risk and quality had a positive contribution. The risk profile of the sub-fund, as measured by the
volatility, was lower than that of its index.
Sustainability, based on RobecoSAM scores, is integrated into the investment policy. These RobecoSAM scores take ESG factors into
account. The portfolio construction process is highly disciplined and ensures that the overall sustainability score of the portfolio is better
than or equal to the overall sustainability score of the index.
Robeco QI Global Developed Sustainable Enhanced Index Equities The investment objective of the sub-fund is to outperform its index, the MSCI World Index, with the aid of a quantitative stock selection
model. Using a combination of alpha factors (value, quality, momentum and analyst revisions) and sustainability factors, the model
identifies broad groups of stocks that are likely to deliver sustainable market-like returns. The sub-fund’s relative performance was
negative, with the alpha and sustainability factors contributing negatively to this. The volatility of the sub-fund was in line with the
volatility of its index, with a low level of active risk. Sustainability, based on RobecoSAM scores, is integrated into the investment policy
of the sub-fund. The sub-fund aims to achieve a 30% higher sustainability score and a 20% lower environmental footprint on four
dimensions versus its index while excluding controversial companies.
Robeco QI Emerging Markets Enhanced Index Equities The investment objective of the sub-fund is to outperform its index, the MSCI Emerging Markets Index, with the aid of a quantitative
stock selection model. Using a combination of factors (value, quality, momentum and analyst revisions), the model identifies broad
groups of stocks that are likely to outperform in the long run. The sub-fund’s relative performance was negative. The momentum factors
delivered a positive contribution while the value, quality and analyst revisions factors contributed negatively. The volatility of the sub-
fund was in line with the volatility of its index, with a low level of active risk. Sustainability, based on RobecoSAM scores, is integrated
into the investment policy of the sub-fund. The portfolio construction process is highly disciplined and ensures that the overall
sustainability score of the portfolio is better than or equal to the overall sustainability score of the index.
Robeco Capital Growth Funds 20
Report of the Board of Directors (continued)
Global Equity sub-funds (continued)
Performance analysis (continued)
Robeco QI Emerging Conservative Equities 2019 turned out to be a great year for investors in emerging markets equities, although underperforming developed markets equities.
Despite a long list events causing uncertainty – like the looming trade war between the US and China – the market climbed the wall of
worries, supported by high returns for technology and cyclical consumer stocks. All other sectors showed considerably lower returns.
Measured in euro terms, the MSCI Emerging Markets Index experienced ten positive months. Only in May and August did the
heightened trade war result in turbulent and negative markets, with low-risk stocks showing their merits by achieving a significantly
lower drawdown. Overall, low-risk stocks lagged the market in 2019 as the MSCI Emerging Markets Index, in euro terms rose 20.6%. In
US dollar terms, the index rose 18.4%.
In terms of sector exposure, the underweight in cyclical technology and consumer stocks resulted in a lower relative return for the sub-
fund. These exposures are the result of our bottom-up stock selection process, which prefers attractively valued low-risk stocks with a
high payout yield and positive momentum. The value factor had a positive impact on the fund’s relative return, mainly as the exposure to
Russian energy stocks and Brazilian utility stocks contributed positively.
This sub-fund is characterized by generally having lower absolute risk than its reference index while having a higher relative risk, as the
strategy deviates considerably from its reference index, the MSCI Emerging Markets Index.
Robeco Emerging Markets Smaller Companies Equities In 2019, emerging markets had a very strong year in terms of performance. The sub-fund outperformed its reference index (MSCI EM
Midcap index), mainly thanks to its positions in India, Russia, South Korea and China. During the year, the fund added to Brazil and
Taiwan and reduced positions in China and India. The absolute risk level for the portfolio remained comfortably within the risk limits of
the fund. For Robeco Emerging Smaller Companies, ESG factors are incorporated into the investment and decision-making process. A
proprietary bi-annual corporate governance questionnaire is an integral part of the fundamental framework. The team assesses
shareholder, board, management, government and environmental factors. Relevant ESG issues are discussed with the management of
companies. Input from RobecoSAM sustainability investing analysts is used to further enhance ESG integration into the investment
process.
Robeco QI Global Value Equities The investment objective of the sub-fund is to outperform the MSCI All Country World Index, by using a quantitative stock-selection
model. The model identifies broad groups of stocks that have positive value characteristics, while at the same time taking momentum,
quality and low-risk characteristics into account.
The sub-fund underperformed its index in a rising market. The value factor had a negative contribution. Controlling for momentum
contributed negatively and controlling for risk had a positive contribution, while the contribution of controlling for quality was flat. The
risk profile of the sub-fund, as measured by the volatility, was higher than that of its index.
Sustainability, based on RobecoSAM scores, is integrated into the investment policy. These RobecoSAM scores take ESG factors into
account. The portfolio-construction process is highly disciplined and ensures that the overall sustainability score of the portfolio is better
than or equal to the overall sustainability score of the index.
Robeco QI Global Developed Multi-Factor Equities The investment objective of the sub-fund is to outperform the MSCI World Index by using a quantitative stock selection model. The
strategy allocates to subsets of companies that have positive value, momentum, quality and low-risk characteristics.
In a rising market, the sub-fund underperformed its index. The performance of value factor was the main negative contributor to the
performance, with the momentum, low-risk and quality factors also contributing negatively. The risk profile of the sub-fund, as measured
by the volatility, was higher than that of its index.
Sustainability, based on RobecoSAM scores, is integrated into the investment policy. These RobecoSAM scores take ESG factors into
account. The portfolio construction process is highly disciplined and ensures that the overall sustainability score of the portfolio is better
than or equal to the overall sustainability score of the index.
Robeco QI Global Developed Conservative Equities ex Japan 2019 turned out to be a great year for investors in global equities. Despite a long list of events causing uncertainty – such as the looming
trade war between the US and China – the market climbed the wall of worries, supported by high returns for technology stocks.
Measured in euro terms, the MSCI World Index experienced ten positive months in 2019. Only in May and August did the heightened
trade war result in turbulent and negative markets, with low-risk stocks showing their merits by achieving a significantly lower
drawdown. However, low-risk stocks lagged the market in 2019 as the MSCI World Index in euro terms rose an impressive 30.0%. In
US dollar terms, the index rose 27.7%.
Robeco Capital Growth Funds 21
Report of the Board of Directors (continued)
Global Equity sub-funds (continued)
Performance analysis (continued)
Robeco QI Global Developed Conservative Equities ex Japan (continued) In terms of sector exposure, the underweight in cyclical technology and consumer stocks resulted in a lower relative return for the sub-
fund, while the underweight in energy stocks had a positive impact on the fund’s relative return. These exposures are the result of our
bottom-up stock selection process, which prefers attractively valued low-risk stocks with a high payout yield and positive momentum.
Moreover, as growth stocks such as technology stocks outperformed the broader market and value-like energy stocks lagged, the value
factor experienced a negative year. Also, high dividend stocks in the US significantly lagged the market.
This sub-fund is characterized by generally having lower absolute risk than its reference index while having a higher relative risk as the
strategy deviates considerably from its reference index, the MSCI AC World Index.
Robeco QI Emerging Markets Sustainable Active Equities The investment objective of the sub-fund is to outperform its index, the MSCI Emerging Markets Index, with the aid of a quantitative
stock selection model. Using a combination of factors (value, quality, momentum and analyst revisions), the model identifies broad
groups of stocks that are likely to outperform in the long run. The sub-fund’s relative performance was negative. The value, quality and
momentum factors contributed negatively to relative performance and the analyst revisions factor positively. The volatility of the sub-
fund was in line with the volatility of its index, with a medium level of active risk. Sustainability, based on RobecoSAM scores, is
integrated into the investment policy of the sub-fund. The sub-fund aims to achieve a 20% higher sustainability score and a 20% lower
environmental footprint on four dimensions versus its index while excluding controversial companies.
Robeco QI Global Developed Conservative Equities 2019 turned out to be a great year for investors in global equities. Despite a long list of events causing uncertainty – such as the looming
trade war between the US and China – the market climbed the wall of worries, supported by high returns for technology stocks.
Measured in euro terms, the MSCI World Index experienced ten positive months in 2019. Only in May and August did the heightened
trade war result in turbulent and negative markets, with low-risk stocks showing their merits by achieving a significantly lower
drawdown. However, low-risk stocks lagged the market in 2019 as the MSCI World Index in euro terms rose an impressive 30.0%. In
US dollar terms, the index rose 27.7%.
In terms of sector exposure, the underweight in cyclical technology and consumer stocks resulted in a lower relative return for Robeco
Conservative Equities, while the underweight in energy stocks had a positive impact on the fund’s relative return. These exposures are
the result of our bottom-up stock selection process, which prefers attractively valued low-risk stocks with a high payout yield and
positive momentum. Moreover, as growth stocks such as technology stocks outperformed the broader market and value-like energy
stocks lagged, the value factor experienced a negative year. Also, high dividend stocks in the US significantly lagged the market.
Robeco Conservative Equities is characterized by generally having lower absolute risk than its reference index while having a higher
relative risk as the strategy deviates considerably from its reference index, the MSCI AC World Index.
Robeco QI Global Developed Active Equities The investment objective of the sub-fund is to outperform its index, the MSCI World Index, with the aid of a quantitative stock selection
model. Using a combination of factors (value, quality, momentum and analyst revisions), the model identifies broad groups of stocks that
are likely to outperform in the long run. The sub-fund’s relative performance was negative. The value, quality, momentum and analyst
revisions factors delivered a negative contribution to the sub-fund’s relative performance. The volatility of the sub-fund was in line with
the volatility of its index, with a medium level of active risk. Sustainability, based on RobecoSAM scores, is integrated into the
investment policy of the sub-fund. The portfolio construction process is highly disciplined and ensures that the overall sustainability
score of the portfolio is better than or equal to the overall sustainability score of the index.
Robeco QI Customized Emerging Markets Enhanced Index Equities I The objective of the sub-fund is to outperform its indices, 80% MSCI World Index and 20% MSCI Emerging Markets Index. Using a
combination of value, quality and momentum factors, a stock selection model identifies broad groups of stocks that are likely to
outperform in the long run. The relative performance in the period under review was negative. The developed markets strategy (80% of
the sub-fund) showed negative relative performance, driven by value and quality factors. The volatility of the sub-fund was in line with
the volatility of its index, with a low level of active risk. The emerging markets strategy (20% of the sub-fund) showed negative relative
performance, mostly driven by the value factor. Sustainability is integrated in