Robeco Asset Management Podcast

Emerging markets are often viewed through the lens of geopolitics, growth and valuations. But for quantitative investors, another question matters just as much: how do systematic models need to evolve as markets change? In this episode, we explore why the asset class remains structurally under-owned, and how innovation in signals, data and portfolio construction can help navigate a more concentrated, more complex investment landscape.

Investors in EM equities may worry they're doubling up by investing in EM debt. That isn't the case though with EM bonds drawing on sovereign credit cycles and local currency dynamics that move independently from equities. The foundation has never been stronger with emerging market economies having recently navigated geopolitical shocks, inflation, and developed-market turbulence.

Emerging markets are anything but homogeneous: institutions, policy regimes, commodity exposure, governance standards and political risk vary. This dispersion is the opportunity set for true active managers to compound value.

The rotation into emerging markets is embryonic, with global investor portfolios still over-exposed to US assets. Realigning investments to better reflect the engines of global economic growth will take decades, not months and this trend is only just gaining momentum.

Stock markets have been dominated by the energy and AI themes, centered around a tech-dominated US market that some feel is over-priced. In the latest episode of our podcast series with Robeco's investors, Chris Hart, Portfolio Manager of Robeco Boston Partners Global Premium Equities, explains how he finds pockets of value all over the world.