RobecoSAM Sustainable Food Equities G EUR

Equity markets rebounded in April after bottoming, for the time being, on 23 March, and the MSCI World finished up 11% (in EUR). The Sustainable Food strategy lagged the market in April, but significantly outperformed the broader food sector. As mobility restrictions succeeded to flatten the Covid-19 infection curve in major economies, investors adopted the view that a fast recovery is possible. Although economic data, such as the reported 30 million jobs lost in the US, was weak, fiscal stimuli now surpassing 8% of the world's GDP were believed to provide a strong enough offset. When asked how doing business will be different in the future, companies repeatedly mentioned global supply chains. Given the recent experience, inventory management is expected to see further technological upgrades, supporting the push for enhanced product tracing and control of waste production in logistics. In face of substantial stimulus packages, the European Commission is demanding a cleaner bounceback of the economy; for example by reusing resources instead of subsidizing fossil fuels or wasteful consumption.

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

The fund distributes a dividend on an annual basis.

RobecoSAM Sustainable Food Equities integrates ESG at different stages of the investment process. We use sustainability performance rankings to focus our fundamental analysis on companies that have demonstrated superior sustainability performance compared to their peers. We then analyze the impact of financially material ESG factors to a company’s competitive position and value drivers. We believe that this enhances our ability to understand existing and potential risks and opportunities of a company. If ESG risks and opportunities are significant, the ESG analysis could impact a stock’s fair value and the portfolio allocation decision. Throughout the investment process, we strive for a low environmental impact, as measured by GHG emissions, energy consumption, water use and waste generation, with the aim of realizing 20% better levels than the index. In addition to ESG integration, Robeco conducts proxy voting and engagement activities focused on specific themes, such as climate change, aiming to improve a company’s sustainability profile. Furthermore, the fund will not invest in companies exposed to the following controversial sectors or business practices: military contracting, controversial weapons, fire arms, UN Global Compact breaches, tobacco, palm oil and thermal coal, according to strict revenue thresholds.

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.