RobecoSAM Sustainable Food Equities G EUR

Stock markets retreated in August as recession fears triggered a preference for safe havens. Softer industrial production in Europe combined with uncertainty around the US-China trade war and an unclear Brexit path, provided investors with plenty of reasons to be cautious. Accordingly, defensive sectors like staples and utilities performed strongest. Although the overall food sector was not immune to these developments, the fund outperformed and finished the month in the green. Packaged food companies have shown relative strength in the last months. Amid the increasing inflation spread of US restaurants versus grocery of 13% in the last 5 years, which means eating out has become relatively expensive, and recently weaker restaurant traffic, one might ask, if there is even more tailwind around the corner. Given the simultaneous shift of food retailers in favor of private label products, visible in the striking volume divergence to branded, it might not be so straightforward. However, successful price hikes of several players in the branded space suggest that having a strong brand in the right food category is now even more important than ever before.

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.