RobecoSAM Sustainable Food Equities G EUR

Global equity markets traded higher in October, flattish in EUR terms, after a negative start to the month. Weaker manufacturing data in the US and noisy trade comments by Chinese officials were offset by the expected Fed rate cut of 0.25% and the hope that the newly agreed general election in the UK on 12 December will remove the standstill with the EU. The food sector performed slightly weaker, but the fund fared relatively better. The present wide valuation spread has renewed the debate about the relative attractiveness of value over growth stocks. Accordingly, pronounced style shifts seem more likely. However, given the continuous soft economic data, growth combined with strong cash flow generation is likely to retain the upper hand. Momentum is building in the food packaging space related to the fight against single-use plastic connected to cups, containers, trays and bowls. Given the ambitious commitments of big food companies to transition towards recyclable or renewable packaging products, solution providers in our universe are seeing a compelling opportunity evolving, which is estimated to be USD 5 bln for paperboard conversions in North America and Europe alone.

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.