RobecoSAM Circular Economy Equities I EUR

The global equity markets rallied almost ten percent (in euro terms), driven by positive Covid-19 vaccine results and the passing of the US election overhang. The Circular Economy strategy gained approx. 1% less than the market, but is leading by more than 10% since inception. Rising prospects of the incoming US administration re-joining the Paris climate agreement, and the UK’s GBP 12 billion plan for a green industrial revolution provide further evidence for post-pandemic green recovery. The circular economy is taking on an increasingly prominent role on a policy level and with regard to companies’ sustainability frameworks. With a currently busy IPO pipeline, this month also brought the IPO of a Swedish textile-to-textile recycling company, which was met with strong demand. Given the gigantic environmental footprint of the 72 million tons of textiles used in apparel every year and 73% of clothing lost to landfill or incineration, brands such as H&M or Levi’s are eager to tap circular supplies and have already launched the first products made with their recycled fiber. In the face of rising consumer awareness, more circular clothing businesses are expected to go public in the coming months.

The fund is allowed to pursue an active currency policy to generate extra returns.

The fund does not distribute dividend; any income earned is retained, and so the fund's entire performance is reflected in its share price.

The RobecoSAM Circular Economy Equities strategy invests in global companies providing circular solutions that create value in loops via reuse, redesign, repair, responsible consumption. It employs systematic, bottom-up stock selection that combines proprietary Environmental, Social & Governance (ESG) data and research throughout the investment process. ESG criteria for exclusions and theme-specific suitability are applied during universe construction. An in-house Sustainability Investing (SI) research team integrates financially-material sector and company-specific sustainability analysis into investment cases. A dedicated thematic equity team incorporate SI research within fundamental analysis and stock valuations. Impact assessments of controversial incidences affecting portfolio holdings provide additional risk management. An active ownership and engagement team interacts directly with company management of fund holdings, offering additional channels for sustainable impact.

Our investment philosophy is grounded in the core belief that the integration of ESG factors into a disciplined, research-driven investment process leads to better-informed investment decisions and better risk-adjusted returns through an economic cycle. Building on our proprietary data and research, we identify companies that generate a competitive advantage through sound business practices, efficiency improvements, and the creation of new solutions for the myriad challenges facing society over the coming decades. Taking a long-term investment perspective, we analyze companies’ business models, market positioning and growth potential, and evaluate their financial performance and valuation. Based on this fundamental assessment, we seek to uncover attractive investment opportunities and implement them in concentrated, conviction-based equity portfolios.

Risk management is fully integrated into the investment process to ensure that positions always meet predefined guidelines.