RobecoSAM Sustainable Healthy Living Equities D EUR

Markets started the year in quite volatile and challenging conditions. The more restrictive monetary policies pursued by the US and European central banks, high inflation numbers especially in the US, ongoing supply chain issues and the start of the war in Ukraine in February caused a market correction, which reached its lowest point around 8 March. From then on, however, markets bounced back markedly on optimism that the military conflict will remain confined and that the economic and geopolitical headwinds will reduce growth by a couple of percentage points, but not cause a full recession. Increasing energy prices drove a marked outperformance of the energy sector in March. On the flip side, rising energy, transport, wage and raw material input costs weighed on consumer staples and food companies, many of which were preparing investors for lower margins in 2022. There were concerns about demand destruction by inflation-impacted consumer discretionary companies. Importantly for the Healthy Living strategy, healthcare stocks played out their safe haven status and outperformed the broad markets.

The fund is allowed to pursue an active currency policy to generate extra returns and can engage in currency hedging transactions.

In principle the fund does not intend to distribute dividend and so both the income earned by the fund and its overall performance are reflected in its share price.

The fund’s sustainable investment objective is to promote good health and well-being and contributing to an efficient healthcare system. Healthy living and sustainability considerations are incorporated in the investment process by the means of a target universe definition, exclusions, ESG integration, and voting. The fund only invests in companies that have a significant thematic fit as per Robeco's thematic universe methodology. Through screening on both Robeco's internally developed SDG Framework and Robeco’s exclusion policy, the fund does not invest in issuers that have a negative impact on the SDGs, are in breach of international norms or where products have been deemed controversial. Financially material ESG factors are integrated in the bottom-up fundamental investment analysis to assess existing and potential ESG risks and opportunities. In addition, where a stock issuer is flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to exclusion. Lastly, the fund makes use of shareholder rights and applies proxy voting in accordance with Robeco's proxy voting policy.

RobecoSAM Sustainable Healthy Living Equities is an actively managed fund that invests globally in companies that promote good health and well-being and contribute to an efficient healthcare system. The selection of these stocks is based on fundamental analysis. The fund's objective is to achieve a better return than the index. The fund has sustainable investment as its objective within the meaning of Article 9 of the European Sustainable Finance Disclosure Regulation. The fund aims to mitigate the rising incidence of chronic “lifestyle diseases” and increasing healthcare costs by investing in companies that provide technologies, products or services linked to the prevention of disease through healthy eating habits, regular exercise and the use of hygiene measures to reduce the spread of infectious diseases. This is done by investing in companies that mainly advance the following UN Sustainable Development Goals (UN SDGs): Good health and well-being, Zero hunger, Industry, innovation and infrastructure, and Clean water and sanitation. Alongside proxy voting and engagement, the fund applies Robeco’s Exclusion Policy of excluding investments in companies exposed to controversial behavior and controversial products (including weapons, tobacco, palm oil, fossil fuel, military contracting, firearms, nuclear power, cannabis, alcohol, gambling, adult entertainment and cannabis). The strategy integrates sustainability criteria as part of the stock selection process and through a theme-specific sustainability assessment. The portfolio is built on the basis of an eligible investment universe that includes companies whose business models contribute to the thematic investment objectives. The assessment regarding relevant SDGs uses an internally developed framework, more information on which can be obtained at www.robeco.com/si. Benchmark: MSCI World Index TRN. The majority of stocks selected will be components of the benchmark, but stocks outside the benchmark may be selected too. While the investment policy is not constrained by a benchmark, the fund may use one for comparison purposes. The fund can deviate substantially from the issuer, country and sector weightings of the benchmark. There are no restrictions on the deviation from the benchmark. The benchmark is a broad market-weighted index that is not consistent with the sustainable objective of the fund.

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