Volvo ocean race e magazine for abu dhabi

In this issue

THE IMPLICATIONS OF A LOW OIL PRICE Page 4 LEADING FROM THE FRONT Page 6 THE GULF: GATEWAY BETWEEN EAST AND WEST Page 8

SPOTLIGHT ON ABU DHABI A collection of articles to commemorate Robeco’s sponsorship of the Volvo Ocean Race

CONTENTS 3 Foreword 4 Three implications of a low oil price 6 Leading from the front 8 The Gulf: Gateway between East and West 10 Taking on the leaders in their own backyard

12 No room for egos in quant investing 14 Facts and figures

15 Investors welcome greater access to the Middle East 16 Contact

For professional investors 4-11 October

Alicante

14-15 March

Auckland

14-17 June

Lorient

15-19 November

Cape Town

18-19 April

ItajaĂ­

19 June

The Hague (Pit Stop)

2-3 January

Abu Dhabi

16-17 May

Newport

27 June

Gothenburg

6-7 June

Lisbon

7-8 February Sanya 2|

FOREWORD The Volvo Ocean Race is now well underway, as the teams reach the second stopover port in Abu Dhabi. Both legs – two of the longest in the race - were keenly fought over during many weeks at sea. And the best is yet to come, with another eight legs calling at seven stopover ports to look forward to over the next six months.

To commemorate the Abu Dhabi stopover, we are pleased to publish our third magazine, focusing on the Middle East as well as some stories directly from our sponsored boat, Team Brunel. In this edition, we feature a double interview with Amr Albialy, Robeco’s Regional Director in our Dubai Office and Gerd-Jan Poortman, the Team Brunel bowman, on how their roles entail leading from the front.

Regular readers of our Volvo Ocean Race stories will know that there are many parallels between sailing and investing, and one of them is – there is no room for egos, either at an asset manager or on a boat. Peter Ferket, chief investment officer for equities at Robeco, explains how ego-free teamwork is vital for the success of the quantitative products that we offer.

The Middle East economy depends on oil, so we feature an outlook on what a falling oil price means for the producers in this region, and what is

the likely impact on OPEC. The organization includes the UAE, a nation of seven emirates including Abu Dhabi and Dubai. We also look at what is the likely impact of the elevation of the UAE from a frontier to an emerging market.

A phenomenal surge in air connectivity by the world’s fastest-growing carriers and the rapidlyexpanding airports has turned the Arabian Gulf states into an important travel hub. We investigate the impact on the UAE’s economy.

And in our latest race report, Team Brunel’s Pablo Arrarte gave us his thoughts while he was in Cape Town on how the second leg would play out.

Sailing north is very different from heading south, and presented its own challenges in much busier seas for shipping and fishing.

We hope you enjoy our third e-magazine and will continue to follow the race with us.

Graham Elliot Managing Director, Head of Middle East & Africa

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‘A low oil price is positive for cyclical equities.

Other clear winners are stocks in Turkey and India’ Peter van der Welle Strategist, Robeco

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THREE IMPLICATIONS OF A LOW OIL PRICE Strategist Peter van der Welle The lower oil price has been welcomed in the West, but it is having a major effect on some OPEC countries. The pain within OPEC – which includes the United Arab Emirates – is not evenly divided, as some can cope with depressed prices better than others. However, the effects of a lower oil price on bonds and equities are mostly positive, explains strategist Peter van der Welle.

The oil price reached a four-year low after OPEC failed to reach a decision to cut production in November. Saudi Arabia and other Gulf producers wanted to keep targets unchanged, while other countries such as Venezuela preferred a cut in the OPEC production quota.

A combination of weak demand and increased US supply of shale oil has steadily lowered the oil price since the summer. Van der Welle believes there will be three major implications on financial markets in general, and the Gulf States in particular.

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Not all OPEC countries will suffer

Some OPEC countries are very capable of handling a period of prolonged low oil prices, he says. “A key indicator is foreign currency reserves. Take for example Saudi Arabia. The country has built ample foreign currency reserves of around USD 750 billion in the last 10 years. These reserves will provide a cushion against the recent fall below fiscal breakeven levels and enable the country to finance the budget in the coming years. These large reserves enable the Saudis to squeeze some US shale oil producers without endangering social welfare.”

“There are other countries in the Gulf with large currency reserves such as Kuwait, Qatar and the United Arab Emirates. They will remain resilient in this environment,” he adds.

Countries with high breakeven prices such as Nigeria, Iran and Venezuela will face economic difficulties because they also have lower currency reserves, he says. “This is the oil price for which oil-producing countries need to have a balanced fiscal budget. These breakeven prices have crept up in the last decade for many countries as governmentspending has increased.”

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Good for cyclical equities, bad for Russia and energy stocks

In general, a low oil price is positive for cyclical equities, says Van der Welle. “These equities profit from an increase in world economic growth due to low oil prices. Low oil prices act as a cut in taxes for consumers, raising purchasing power.”

Other clear winners are equities in Turkey and India, he predicts. “These two countries are large net oil importers and have current account deficits.

A low oil price gives them more monetary flexibility to stimulate the economy, because there is less risk of inflation.”

But he warns that not every part of the equity market will do well. “Obviously for many energy stocks, especially oil service companies, the effects are negative.

And a low oil price is a clear red flag for Russian equities, he says. “The country is very dependent on oil and gas exports and might well go into recession next year. Its currency is already under heavy pressure due to economic sanctions.”

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Positive for bonds, except for US high yield

For bonds a lower oil price is slightly positive because it helps to keep inflation low, says Van der Welle. “It may especially have implications for the Eurozone as a net energy importer. This region has a risk of deflation, and so a low oil price increases the chance that the ECB will resort to additional easing measures. The direct effects for government bonds in this region are slightly positive. But much has been priced in already and real rates face upward pressure.”

However, the US high yield bond market might suffer, he says, “Part of the US shale oil and gas boom was financed by the issuance of high yield debt, which has seen a rising share of the total US market. The current low oil price makes it more difficult to refinance. Defaults by US energy companies could increase the perception of risk by investors and have wider implications for the high yield market.”

This publication is intended to provide investors with general information on Robeco’s specific capabilities, but does not constitute a recommendation or an advice to buy or sell certain securities or investment products.

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LEADING FROM THE FRONT Amr Albialy and Gerd-Jan Poortman Leadership is key to winning any race, be it in investment or on the high seas. And the most important component is effective teamwork, say Robeco’s regional director in the Middle East, Amr Albialy, and Team Brunel’s Gerd-Jan Poortman. So how do both men handle their very different but similarly focused roles?

“Staying connected with the broader Robeco organization is absolutely essential to building success for the regional business,” says Albialy, who is primarily responsible for large institutional clients in Abu Dhabi and Saudi Arabia.

“Teamwork across the group is key, and ensuring that we build and sustain strong networks with the various Robeco teams has been one of the key objectives for the Middle-East team.”

“It has been through a focus on this team-based approach that we have been able to grow and develop the business in the region. You can work incredibly hard locally on developing a client relationship, but without the necessary support of all your team members, the likelihood of success is greatly diminished.”

“A partnership approach, right across the Robeco organization, has therefore for us, been a key factor to the success in delivering the more

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bespoke and customized solutions expected by our large institutional clients in the region.”

Life at the sharp end For Team Brunel’s Gerd-Jan Poortman, leading from the front goes with the job title. He is the team’s bowman, the sailor who specialises in standing at the front, or bow, of the boat to hoist or drop the sails. He also acts as a look-out, particularly when the boat enters busier waters such as the Middle-East shipping lanes.

“We have only eight sailors and everybody needs to be able to do everything; we interact everywhere,” he says. “But everyone on the boat has his own speciality like a football team’s striker, midfielder or goalie. We have trimmers, drivers, and I am the bowman.”

“We have six sails on the boat that we can hoist and drop. We use different sails for different wind angles and strengths. To hoist and drop them we have different techniques, and that is my speciality.

My goal is to change sails when the conditions are changing without losing speed and time.

Sometimes my job is difficult because I am standing on the bow, when all the waves are rolling over the deck at great speed. With big winds it is hard to manoeuvre around the bow, and that makes it quite complicated.”

“When you have changed the sails you need to get off the bow as quickly as possible. Sometime it’s really bad up there at the sharp end: the trick is really to hold on and to keep low. My balance on one leg is terrible!”

Serving a bespoke market Albialy has a focused approach, as the Middle East market differs significantly from most other regions in the world in which Robeco operates. It is heavily dominated by number of very large sophisticated institutional clients, including sovereign wealth funds, central banks and state-funded pension funds.

Business development success for Albialy is therefore very much driven by the need to have a very client-centred approach, with an emphasis on developing long-term strategic partnership based relationships. “Trying to approach this market in a product-led manner may generate some short-term results, but is clearly not conducive to building longterm success,’’ says Albialy.

“My role is mainly to ensure I am the primary point of contact with the clients in order to have a better understanding of their investment objectives. I work closely with both clients and my colleagues across Robeco to enable clients to achieve their financial objectives by matching their investment

needs with the best solutions. It is very important in dealing with such sophisticated clients to be always client-centric and focus on being content and solution-driven. The key is delivering innovative, customized solutions, and engaging with the clients in a much more advisory capacity.’’

“Our clients are looking for specialist high-alpha strategies, more bespoke and customized solutions, and alternative strategies,” he says. “Currently, factor investing is among the areas of greatest interest we see for the Robeco capabilities in the region.”

Defending is harder than attacking Successful investing means staying ahead of the competition, and Team Brunel was sometimes faced with the tactical decision of what to do when they see a boat in front of them. Is it better to catch up, or wait for the opposition to make a mistake, as they do in other sports such as motor racing?

“You always want to be in front,” says Poortman.

“But if you had the choice, it would be nice to be second and then overtake your competitor at the end. Defending is always harder than attacking.”

This can mean busy shifts on deck for Poortman, literally running with the wind during the testing first leg between Alicante and Cape Town.

“We had a huge amount of sail changes and 95% of them went really well,” he says. “I especially remember the changes we made during the night just outside the Med on the first night in the Atlantic, when we had a lot breeze. We sailed from the back to the front of the pack and that was mainly because we managed to change sails in very difficult circumstances and lose very little speed. So we did much better that the others.”

Competing with the best So what does the Volvo Ocean Race mean to both men on a more personal level? “Like the Volvo Ocean Race, most markets in which Robeco is active, are also extremely competitive. Robeco’s strong teams, superior investment products, and the depth of our relationship with clients are all crucial in winning. I believe we have a good advantage,” says Albialy.

“It is also a truly unique event, and it is a privilege to be able to personally participate in this, and to be able to share the experience with a number of our important clients across the region.”

Working with the best in the business also drives Poortman. “The thing I like the most about the Volvo Ocean Race is that I get to compete with the best sailors in the world in the best race in the world,” says Poortman.

“I guess what I like the least is the uncomfortableness overall – we’re at sea for weeks at a time, without a decent bed or shower, and it does get a bit stressful sometimes.”

‘A partnership approach, right across the Robeco organization and with our clients as well, has been a key factor for success’ This publication is intended to provide investors with general information on Robeco’s specific capabilities, but does not constitute a recommendation or an advice to buy or sell certain securities or investment products.

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THE GULF: GATEWAY BETWEEN EAST AND WEST How to be a hub Huge growth in the airline industry in Gulf States has had a major impact on the local economy.

The construction and financial sectors offer interesting investment opportunities.

A large increase in the number of flight connections and the construction of airports have put the Gulf States on the map as a global air-traffic hub.

The International Civil Aviation Organisation (ICAO) has calculated that by 2020 the six countries that make up the Gulf Cooperation Council (GCC) will be processing around 250 million passengers a year.

Within the group of GCC countries, the United Arab Emirates is the most ambitious. In terms of passenger numbers, Dubai International Airport was only the world’s 13th largest airport in 2013, and number eight for freight traffic.

But once construction of Dubai’s second airport,

‘The region is exceptionally well positioned to connect Europe, Africa and Asia’ 8|

Al Maktoum, is complete, it is set to grow rapidly into the world’s largest airport, with projections of 160 million passengers annually, according to the ICAO. In comparison, in 2013, Atlanta airport in the US was the busiest airport in the world, with a total of 92 million passengers checking in or out.

The location of the Gulf States plays a key role in current and expected growth. With nearly two billion people within two and a half hours flying time and, according to the ICAO, no less than seven billion people just one flight away in 2025, the region is exceptionally well positioned to connect Europe, Africa and Asia.

Gateway between East and West But the growth in the airline sector didn’t just happen. The governments of the Gulf States have invested hugely in the development of the airline industry. Dubai’s ulterior motive for attracting many tourists and business people is that it does not possess any oil or gas reserves. So by filling a central function for the wider region, the emirate can still benefit from the area’s prosperity.

The Gulf States see themselves as an important destination for tourists and expats. Dubai in particular has positioned itself strongly here.

It wants to be more than just an air-traffic hub – it aims to be a gateway between East and West, with banks, accountants, media companies, hotels and

legal firms. Businesses are being attracted with a favorable tax environment, but also with appealing facilities such as ski slopes, fabulous beaches and luxury retail centers – which are of course also very tempting for tourists. Abu Dhabi is less focused on mass tourism and prefers to attract more culturally aware tourists, for instance with museums.

Major impact on local economy The massive growth in the airline sector is having a major impact on the region’s economic development. Business analysts Oxford Economics calculated that the airline industry in Dubai, including revenues from tourism, already contributes 26% to the country’s GDP, but that this portion will grow to 45% by 2030.

The other emirates are also enjoying the fruits of Dubai’s fierce growth. In Ras al-Khaimah, Sharjah and Fujairah, many hotels are being built. Oil-rich Abu Dhabi is also expanding, but they are more reticent as the emirate does not require revenues from tourism.

The development of Dubai and other centers in the Gulf stalled when the global economy took a punch from the financial crisis. Projects were put ‘on hold’ and rulers have been planning more rationally since then. Partly due to this more cautious approach, lower oil prices aren’t likely to have any major effect. Not only are there many projects still

in the pipeline, but also the revenues from new activities form a buffer against lower oil prices.

Interesting investment opportunities But does this global hub function also make the Gulf region attractive to investors? The rapidly growing airline companies are not listed, and neither are the airports. The ‘ruling families’ that control the emirates and surrounding countries own these enterprises through their investment companies.

However, there are interesting opportunities in other areas, such as the banking sector and in construction. Rob Schellekens, portfolio manager for Emerging Markets Equities, uses the examples of Dubai Islamic Bank and the recently floated Emaar Malls Group, which commissioned construction of the Dubai Mall, the world’s largest retail center.

One positive factor is that the equity markets of Qatar and the UAE are in the MSCI Emerging Markets Index. This will automatically attract the interest of professional investors. Equally favorable from an investment perspective in the UAE is the fact that Dubai is organizing the World Expo in 2020. A recent report by consultants Deloitte indicated that tourism is set to almost double by 2020. This will require construction of many hotels and conference centers. There is still no end in sight for construction activities in Dubai.

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TAKING ON THE LEADERS IN THEIR OWN BACKYARD Pablo Arrarte Team Brunel faces its toughest challenge as it heads towards Abu Dhabi – racing against the first leg winner in their own backyard.

Abu Dhabi Ocean Racing, commanded by British Olympic silver medalist Ian Walker, won the Alicante to Cape Town stretch, beating Team Brunel by almost 4½ hours.

Team Brunel is out for revenge, but knows it won’t be easy, given that Abu Dhabi Ocean Racing will pull out all the stops to be first over the line in their home port. The biggest issue was to learn from the mistakes made in the first leg, says crew member Pablo Arrarte.

“We need to go faster with light winds. We have talked a lot about how we can manage that, as it was the biggest mistake that we made during the first leg: losing the momentum when it wasn’t that windy. We were fine when the wind was blowing strongly,” says the genial Spaniard.

Let the north winds blow The principle difference with the first leg is the boats will be sailing in entirely the opposite direction – going north from Cape Town rather than heading south – which means the wind conditions will be much better, says Arrarte.

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“We start in the Southern Ocean and make our way up to the Equator. In the south there is more wind than in the north - it’s exact the opposite of the first leg,” says Arrarte, whose role as a watch captain makes him one of the more senior crew members.

“The tactics during the first leg were to go quite far west, near to Brazil, and then turn sharply east, towards Cape Town, to get to the best winds,” he says. “Tactically it’s a similar story for this leg.

The question for us will be: for how long do you go south, and then make the turn to the east before you go north?”

“If you go directly north much earlier, then you sail less distance, but you have less wind. If you go south there is more wind, but you sail more miles.

It’s a trade-off, but the easterly route is normally the fastest one,” he says.

“When we go off the coast of East Africa there is a real threat of pirates, but the bigger problem is the many fishermen who sail without lights or proper navigation equipment,” Arrarte says.

As for the crew, they’ve already bonded during the months of training and time spent at sea, and they have adapted well to living with each other in cramped and sometimes stressful conditions, he says.

“There is always the danger that we could become irritated with each other, but we have not encountered problems of this kind so far,” he says. “We’re living on top of one another, so we work it out. We’re always looking forward though to the next stopover, and sailing into Abu Dhabi – hopefully first.”

In the Doldrums again The route from South Africa also faces a repeat of a challenge faced on the way down: a notorious area of low pressure called the Doldrums that has little wind and has caused many boats to come to a standstill. The sailors when then go from one extreme to another as they face potentially monsoon conditions north of the Equator.

This publication is intended to provide investors with general information on Robeco’s specific capabilities, but does not constitute a recommendation or an advice to buy or sell certain securities or investment products.

‘We need to go faster with light winds – this was the biggest mistake that we made during the first leg’ Pablo Arrate

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‘Keep it as simple as possible and as complex as needed.

We do not change for change’s sake’

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NO ROOM FOR EGOS IN QUANT INVESTING Equities head Peter Ferket Robeco’s assets under management in Quant Equities recently surpassed the USD 20 billion milestone. Peter Ferket, Chief Investment Officer for Equities and closely involved in Robeco Quant Equity since the late 1990s, explains the success of the quant equity investing offering. He reveals that it is partly down to keeping things simple, and having no room for egos in a department full of some of the cleverest people in investing.

Quant investing takes many shapes and forms: what unites them is that they are evidence and rules-based, says Ferket. “Quant strategies are always the result of thorough empirical research including back-testing of investable strategies. In day to-day portfolio management, pre-defined rules are strictly followed. There is a possibility to deviate from these rules, but only to neutralize undesired risk exposures.”

What is important is to understand why a certain quant strategy works, he says. “By now we all know that the market is not efficient, but there are different explanations as to why it is not. At Robeco we believe market inefficiencies are caused by behavioral biases of investors, such as greed, fear and anchoring, and by investment restrictions.

For example, if investors are not allowed to leverage their positions, they will tend to have a preference for high beta stocks to achieve outperformance.”

Robeco does not believe in the other prevailing explanation, which is that the premiums resulting from inefficiencies are a compensation for risk.

According to this line of thought, value companies are said to have a premium because they are more risky, as more of them go bankrupt.

“We want to harvest the factor premiums without unrewarded risk,” says Ferket. To this end, Robeco’s researches have added distress risk to the variables and have ‘residualized momentum’, which means that they have eliminated unrewarded risks and focus on stock-specific momentum rather than market momentum.

Keep it as simple as possible Robeco’s guiding principle is: Keep it as simple as possible and as complex as needed. “We do not change for change’s sake,” Ferket notes.

“This means that our researchers have to accept that research will not always lead to adjustments in the strategy. There is no room for egos. Several of our researchers have a PhD. The research required to achieve that tends to make one humble.”

“And I think this contributes to our success.

We have put much effort and research into dynamic allocation, for example, but we have not found that it improves the risk-return profile of our strategies.

Two years of research have therefore not led to

any concrete changes. Of course, it has greatly deepened our insights.”

Fear and greed won’t go away Ferket is a strong believer in the sustainability of quantitative equity strategies. “Fear and greed are human emotions that will not disappear,” he states.

“Investment restrictions won’t either. In addition, I do not expect everyone to make use of the biases or move to quant investing. Passive investments will not go away, nor will fundamental active strategies.

Granted, once factor investing becomes more mainstream the premiums may become smaller, but they are here to stay.”

Ferket’s involvement with the quantitative research department dates from 1999, heading the team until 2007, and working together with researchers such as David Blitz, Pim van Vliet and Wilma de Groot. His role expanded in April 2003 when he combined it with the position of portfolio manager for Enhanced Indexing within the equity department.

The Enhanced Indexing range was the first truly quant-managed suite of equity products.

Since the end of 2013, Ferket’s remit has moved into sustainability investing after he became the portfolio manager of RobecoSAM Quant Sustainable Global Equities strategy.

“This combines two key strengths of Robeco: sustainability research and quantitative investing,” he says. In total he now runs four investment teams while remaining chief investment officer for equities.

‘Several of our researchers have a PhD. The research required to achieve that tends to make one humble’ This publication is intended to provide investors with general information on Robeco’s specific capabilities, but does not constitute a recommendation or an advice to buy or sell certain securities or investment products.

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VOLVO OCEAN RACE Facts & Figures – This is the 12th edition of the race, and the 5th under the name Volvo Ocean Race – The Netherlands and Sweden (Volvo’s home country) have the strongest history in the race in terms of the number of teams and sailors taking part – 7 teams are in this edition, including the first women’s team (Sweden) in over a decade – Each boat has 8 sailing crew and one on-board reporter – Some 22,000 corporate guests will be invited at stopovers and other hospitality events by sponsors of the race and the teams – The total TV audience is expected to be 1.65 billion people, on a par with the Olympics and World Cup The teams in the race are: – The Netherlands: Team Brunel – Abu Dhabi: Abu Dhabi Ocean Racing – China: Dongfeng Race Team – Sweden: Team SCA (all-female) – America/Turkey: Team Alvimedica – Spain: Team España – Denmark: Team Vestas Wind The other sponsors of Team Brunel are: – Brunel: project management, staff secondment and consultancy – Schouten Global: training and development – Moduleo IVC: premium vinyl flooring – Sub-sponsors : Gaastra (teamwear); Ernst & Young (accountancy)

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INVESTORS WELCOME GREATER ACCESS TO THE MIDDLE EAST Rob Schellekens The Middle East offers attractive investment opportunities but the amount of publicly listed companies is still modest. Recent MSCI rebalancing adjustments and a possible opening up of Saudi Arabia next year bode well for investors that want to participate in some of the region’s thriving companies, says Rob Schellekens, portfolio manager for Robeco’s Emerging Markets Smaller Companies Equities strategy.

Increased weight in MSCI index The first promising move was the inclusion, in June 2014, of Qatar and the United Arab Emirates (UAE) in the MSCI Emerging Markets Index. As these countries imposed a Foreign Ownership Limit (FOL) of 25%, MSCI applied a Limited Investability Factor of 0.5x to the weights of several stocks listed on the stock exchanges of these countries. Recently, however, Qatar increased the FOL to 49% via a Royal Decree and the UAE made a similar move.

This prompted the MSCI to lift the limit on the weight of both countries. As a result, the weight of UAE in the MSCI Emerging Markets Index went from 0.55% to 0.73% and that of Qatar from 0.64% to 0.94% in the index’s annual rebalancing as of the close of 25 November. We expect this adjustment to lead to USD 1 billion of inflows into Qatar and USD 500 million into the UAE.

Overweight in UAE and Qatar Robeco Emerging Markets Smaller Companies Equities is overweight in both UAE (+1.8% against the index) and Qatar (+0.5%). These countries are expected to offer 3.5% to 4% growth over the coming years. Populations are growing, financial reserves are strong - with a lot of money in sovereign wealth funds – and current account surpluses of 15% of GDP are no exception.

In political terms the countries also compare favorably with the surrounding countries and are considered a beacon of stability in the region.

Potential risks are a spreading of the unrest from neighboring countries or further declines in the oil price. In the latter event however, their large reserves constitute a solid buffer.

plus 8 or 9 million expats - with a median age of 25 to 26 years. Foreign-exchange reserves are estimated at a cool USD 750 billion and as the world’s second-largest oil producer after the US, Saudi Arabia plays an important role in the world’s energy supply. Although the market is expensive, it offers a great variety of companies in various sectors. In the next few years the economy is expected to grow by between 3.5% and 4.5%.

Its currency is pegged to the US dollar because of the important role of oil in its trade balance.

“Although for now, we have to content ourselves with the low weight of Middle Eastern companies in the MSCI, we are looking forward to more investment opportunities in the years to come,” Schellekens says.

‘The Middle East

offers attractive investment opportunities although the breadth of publicly listed companies is still limited‘

Will Saudi Arabia open up?

Another important country in the region, Saudi Arabia, is also in the process of opening up for direct foreign access to the market. The market expects this to materialize in the first half of 2015.

If Saudi Arabia were to be added to the MSCI Emerging Markets Index today it would have a weight of up to 2% in the index, with a daily market turnover of around USD 2 billion.

Saudi Arabia can be interesting for investors.

The country has a population of around 30 million

This publication is intended to provide investors with general information on Robeco’s specific capabilities, but does not constitute a recommendation or an advice to buy or sell certain securities or investment products.

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Robeco Middle East Dubai International Financial Centre Gate Village Building 7 2nd Floor, Unit 209 Dubai United Arab Emirates T +971 4361 4700 F +971 4368 8160 I www.robeco.com

Important information This material is being distributed by Robeco Institutional Asset Management B.V. (Dubai office) located at Office 209, Level 2, Gate Village Building 7, Dubai International Financial Centre, Dubai, P.O. Box 482060, UAE. Robeco Institutional Asset Management B.V. (Dubai office) is regulated by the Dubai Financial Services Authority (“DFSA”) and only deals with Professional Clients and does not deal with Retail Clients as defined by the DFSA. This publication is intended for professional investors.

Robeco Institutional Asset Management B.V. (trade register number: 24123167) has a license as manager of UCITS and AIFs from the Netherlands Authority for the Financial Markets in Amsterdam. This document is intended to provide general information on Robeco¹s specific capabilities, but does not constitute a recommendation or an advice to buy or sell certain securities or investment products. The prospectus and the Key Investor Information Document for the Robeco Funds can all be obtained free of charge at www.robeco.com.

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