Consumer Trends Equity
Key points:
- Identifies strong secular global growth trends from a consumer perspective
- Ensures pure-play exposure to trends and proven businesses
- Invests in structural winners within their industry
Philosophy
The investment philosophy for consumer trends equity is based on our conviction that we can generate alpha:
- Top-down – by identifying the most appealing trends and themes at an early stage; and
- Bottom-up – by selecting attractively priced stocks that are set to benefit from these trends and themes.
Process
Our investment process consists of three steps: First, top-down identification of long-term trends from the consumer perspective. The three major long-term trends are ‘The Digital Consumer’, ‘The Emerging Consumer’ and ‘Strong Brands’. Second, bottom-up selection of companies that combine a high exposure to the selected themes with upside potential. Third, careful portfolio construction where the size of positions is based on conviction level and risk characteristics.
Team
The global consumer trends equity strategy is managed by two portfolio managers. They are based in Rotterdam and fully dedicated to the strategy. These portfolio managers are supported by two trend researchers and the other trend portfolio managers within the Trends Equities team. This team is responsible for a range of trend strategies that are expected to provide above average returns by profiting from long term structural trends. The portfolio managers also have access to Robeco’s sector, emerging markets and sustainability analysts.
