Robeco has launched a new high-conviction emerging market equity fund with an emphasis on sustainability and ESG compliance.

The Robeco Sustainable Emerging Stars Equities fund aims to both beats its benchmark, the MSCI Emerging Markets Index, and claims to have a superior ESG profile and a smaller environmental footprint. 

The fund will utilise a new strategy geared towards sustainability, created by Robeco. It will have concentrated portfolio, comprising of 35-50 holdings, resulting in an active share above 80 percent, and will select companies from a sustainable investment universe created by top-down country analysis and bottom-up stock ideas. The strategy will also include voting and engagement, carried out by Robeco’s active ownership team.

Jaap van der Hart and Fabiana Fedeli will manage the fund. Both of them are members of Robeco’s emerging market equity team, which has a track record stretching back nearly 25 years.

Fabiana Fedeli, global head of fundamental equities and portfolio manager of Robeco Sustainable Emerging Stars Equities fund, believes it will enhance its current emerging markets offering and appeal to its clients.

She explained: “Our long history and experience of investing in emerging markets enable us to offer clients a strategy that takes high-conviction positions. This, combined with our leading global position in sustainable investing, makes us confident that we have a great solution for our clients, enabling them to achieve their financial and sustainability goals through superior investment returns and solutions.”

Robeco Sustainable Emerging Stars Equities fund is domiciled in Luxembourg and will be available to institutional and retail investors, as well as wholesale distributors in key markets at the request of investors.