Robeco Sustainable European Stars Equities Z EUR

Mathias Büeler is Head of Sustainable European Equities and Portfolio Manager for the Robeco Sustainable European Stars Equities strategy, as well as serving as a equity analyst covering the Financials, Real Estate, and Consumer Discretionary Sector. Prior to joining in 2011, Mathias worked as a sell-side equity analyst at Kepler Capital Markets for more than four years, covering Swiss banks and diversified financials. Previously, he was Head of Product Management Structured Products at Man Investments for two and a half years, where he started his career in 2004. Mathias holds a Master of Arts majoring in Business Administration from the University of Zurich and is a CFA® Charterholder. Oliver Girakhou is Portfolio Manager of Robeco Sustainable European Stars Equities strategy. He covers and leads the research in the Materials, Industrials Energy and Utilities industries within the Team. Prior to joining Robeco in 2014, he spent 6 years at Credit Agricole – Cheuvreux (later KeplerCheuvreux) as a sell-side equity analyst covering European industrial companies. He also gained first-hand business experience as an business analyst at the BMW Group where he worked in the China Strategy Department and he started his career in 2008. Oliver earned his Master in Social and Economic Science from Vienna University’s School of Economics and Business Administration, and his MBA from ESCP Europe.

The fund is established in Luxembourg and is subject to the Luxembourg tax laws and regulations. The fund is not liable to pay any corporation, income, dividend or capital gains tax in Luxembourg. The fund is subject to an annual subscription tax ('tax d'abonnement') in Luxembourg, which amounts to 0.05% of the net asset value of the fund. This tax is included in the net asset value of the fund. The fund can in principle use the Luxembourg treaty network to partially recover any withholding tax on its income.

The fiscal consequences of investing in this fund depend on the investor's personal situation. For private investors in the Netherlands real interest and dividend income or capital gains received on their investments are not relevant for tax purposes. Each year investors pay income tax on the value of their net assets as at 1 January if and inasmuch as such net assets exceed the investor’s tax-free allowance. Any amount invested in the fund forms part of the investor's net assets. Private investors who are resident outside the Netherlands will not be taxed in the Netherlands on their investments in the fund. However, such investors may be taxed in their country of residence on any income from an investment in this fund based on the applicable national fiscal laws. Other fiscal rules apply to legal entities or professional investors. We advise investors to consult their financial or tax adviser about the tax consequences of an investment in this fund in their specific circumstances before deciding to invest in the fund.

The fund incorporates sustainability in the investment process via exclusions, negative screening, ESG integration, ESG and environmental footprint targets, and voting. The fund does not invest in issuers that are in breach of international norms or where activities have been deemed detrimental to society following Robeco's exclusion policy. In addition, a negative screen is used to exclude the 20% worst ESG scoring stocks from the investable universe. Financially material ESG factors are integrated in the bottom-up fundamental investment analysis to assess existing and potential ESG risks and opportunities. In the stock selection the fund limits exposure to elevated sustainability risks. The fund also targets a better ESG score and at least 20% lower carbon, water and waste footprints compared to the reference index. 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.

After the rollercoaster ride of March, April saw a continuation of the upward trend established in the fourth quarter of last year. The MSCI Europe was up 2.6%, as relief over the health of the banking system after the bailout of struggling banks in the US and Europe provided a new positive impetus. Additionally, various economic indicators are showing improvements. Inflation is easing, economic sentiment is up, unemployment remains at a record low and Western Europe GDP growth forecasts are raised. Yet, the signs are not unanimously positive. Strong labor markets keep inflation pressure high, yield curves remain inverted, signaling a high probability of a recession, and the corporate earnings season is showing signs of exhaustion as companies report peak earnings and markets show a tepid reaction to such announcements. Healthcare stocks did well, helped by strong returns of medical equipment companies. Stocks of basic resource companies declined by 5%, as worries over global demand, in particular from China, are putting pressure on copper, iron ore and steel prices.

Based on transaction prices, the fund's return was 2.63%. The fund returned +2.7% in April, which was broadly in line with the market performance for the month as well as year to date. The largest relative detractor in the month was in the energy book, as the sector posted strong returns and the fund runs an underweight. In the financials sector, the fund's position failed to fully participate in the relief rally, as the position in Deutsche Boerse – a defensive business within the sector – declined by around 3.5%. The fund's underweight position in the information technology sector made a positive contribution to the relative return, as tech stocks lost more than 5%. The fund's position in stocks of consumer discretionary companies provided better returns because of better selection. Stocks with exposure to global travel such as travel booking and hospitality software company Amadeus or global hotel franchisor IHG performed well.

The fund's strategy aims to make investments in high-quality companies with sustainable, differentiated business models taking a full-cycle view. Given that approach, we'd expect the fund to show its full strength when returns of individual stocks start to materially differ due to less overall market support. The fund's positions tend to be less driven by assumptions on general market trends, but much more by company-specific qualities that are likely to endure in both positive and negative environments. Driven by expected business resilience and comparably moderate valuations, our key convictions can give some comfort in volatile times.