Amidst ongoing global market disruptions due to the Iran conflict, an emerging market equity fund that has outperformed 96% of its peers over the past year has made a clear judgment: high-end Asian technology stocks, particularly AI-related chip manufacturers, are the most defensively valuable asset class in the current geopolitical risk environment.
Robeco Emerging Stars Equities has allocated over 40% of its assets to Asian chip stocks, including those in South Korea. Jan de Bruijn, a client portfolio manager at the fund, stated that even if the global economy enters a recession, these chip companies, due to their high market share in critical product categories, will retain strong cost-pass-through capabilities and a formidable pricing power.
According to data compiled by Bloomberg, the fund had $4.6 billion in assets under management as of the end of February, with a 45% return over the past year and a 6.8% year-to-date return in 2026. Against the backdrop of Asian chip stocks outperforming the regional market this year, the fund's concentrated holdings have preemptively secured this source of excess returns.
<h2>Monopoly Structures Grant Chip Stocks a Pricing Moat</h2>
In de Bruijn's view, the core investment logic for Asian chip companies is rooted in the pricing power derived from market structural monopolies. &#34;AI won't disappear because the global economy goes into recession,&#34; he said in an interview.
South Korean companies hold approximately 80% to 90% of the market share in High Bandwidth Memory (HBM) chips. De Bruijn pointed out that such a highly concentrated market structure means these companies can pass on a significant portion of their costs to downstream customers.
Against the backdrop of risk aversion triggered by the Iran conflict and an uncertain global economic outlook, the demand for high-end chips for AI infrastructure development is considered highly inelastic, forming a crucial support for the aforementioned judgment.
<h2>Discounted Holding Company Strategy Enhances Valuation Attractiveness</h2>
The fund also employs a &#34;proxy trading&#34; strategy, indirectly gaining exposure to target assets by acquiring shares in holding companies whose market prices often trade at a discount of up to 60% relative to their net asset value.
Accordingly, the fund chooses to hold SK Square rather than directly holding SK Hynix, and Naspers instead of directly holding TENCENT. De Bruijn stated, &#34;Sometimes you find a holding company that owns shares in a target company, and when you sum up the valuations, you realize you are buying into that investment story at a significant discount. We believe this discount will narrow over time.&#34;
This strategy allows the fund to gain exposure to quality technology assets while entering at relatively low valuations, thereby enhancing the overall portfolio's margin of safety.

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Geopolitical risks continue to disrupt global markets. An emerging market fund, which has outperformed 96% of its peers over the past year with a 45% annual return, offers a unique judgment: it has heavily weighted over 40% of its assets in Asian chip stocks, betting on the inelastic demand for AI and the moat of monopolistic pricing power. Furthermore, it employs a "discounted holding company" strategy, acquiring stakes in quality assets like TENCENT and SK Hynix at a 40% discount, awaiting valuation recovery

- Amid ongoing conflict in Iran affecting global markets, Robeco Emerging Stars Equities fund identifies Asian high-tech stocks, particularly AI-related chip manufacturers, as valuable defensive assets.  
- The fund allocates over 40% of its assets to Asian chip stocks, benefiting from their strong pricing power and ability to pass on costs due to market monopolies, even in a potential recession.  
- Utilizing an "indirect investment" strategy, the fund invests in holding companies at significant discounts, enhancing overall valuation and security margins while maintaining exposure to quality tech assets.

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Top Emerging Market Fund: Asian Chip Stocks are the Best Hedge Against the Iran Conflict