Robeco FinTech M2 USD

Patrick Lemmens is Lead Portfolio Manager within the Trends Equities team. He has a focus on financials/fintech. Prior to joining Robeco in 2008, he managed the ABN AMRO Financials fund from October 2003 to December 2007. Previously, he held the position of Analyst of Global Financials at ABN AMRO and was Global Sector Coordinator of the Financial Institutions Equities Group at ABN AMRO. Patrick Lemmens started his career in the investment industry in 1993. He holds a Master's in Business Economics from Erasmus University Rotterdam and is a Certified European Financial Analyst. Michiel van Voorst is Co-Portfolio Manager within the Trends Equities team. He has a focus on financials/fintech/next digital billion. In 2019, Michiel rejoined Robeco from Union Bancaire Privée in Hong Kong where he was CIO Asian Equities. Prior to that, Michiel spent 12 years at Robeco in several senior positions including senior portfolio manager Rolinco Global Growth fund and Robeco Asian Stars. Prior to joining Robeco in 2005, Michiel was Portfolio Manager US Equity at PGGM and Economist with Rabobank Netherlands. Michiel started his career in the investment industry in 1996. Michiel van Voorst holds a Master’s in Economics from University of Utrecht and is a CFA® charterholder. Koos Burema is Co-Portfolio Manager within the Trends Equities team. He has a focus on financials/fintech. Koos was an Analyst with the Emerging Markets team covering Korea and technology in Taiwan and Mainland China. Besides this, he was responsible for the integration of ESG in the investment process. Before joining the team in January 2010, he worked as a Portfolio Manager for different sector teams within Robeco. He started his career in the industry in 2007. Koos holds a Master’s in Business Administration from the University of Groningen and is a CFA® charterholder.

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 through exclusions, ESG integration, engagement 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. Financially material ESG factors are integrated in the bottom-up investment analysis to assess existing and potential ESG risks and opportunities. In the stock selection the fund limits exposure to elevated sustainability risks. In addition, where a stock issuer is flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to engagement. Lastly, the fund makes use of shareholder rights and applies proxy voting in accordance with Robeco's proxy voting policy.The following sections display the ESG-metrics that are relevant for this fund along with short descriptions. For more information please visit the sustainability-related disclosures. The index used for all sustainability visuals is based on [Index name].

In August, the fund's performance relative to the MSCI AC World Index varied the most across three of the categories: payments, financial management, and data & analytics. In payments, Adyen reported below-consensus results, but still demonstrated robust revenue growth (21%) with a healthy EBITDA margin (43%). Confidence in management was shaken, requiring strong earnings reports to regain credibility. PayPal appointed a new CEO, Alex Chriss, and needs a course correction for share price improvement. MercadoLibre excelled with 31% YoY revenue growth and improved operating margins. In financial management, NU Holdings impressed with customer growth and increased revenue per active customer. Intuit reported strong results and optimistic guidance, while Credit Karma faced macroeconomic challenges. In data & analytics, Verisk performed well, but was considered expensive, while London Stock Exchange had mixed results, and Intercontinental Exchange showed promise with potential synergy benefits.

Based on transaction prices, the fund's return was -5.12%. In August, the fund's return lagged behind the MSCI AC World Index. Notably, data & analytics and financial infrastructure made positive contributions, with top performers including Tradeweb, Verisk Analytics, and Intercontinental Exchange in the former, and Qualys, EPAM Systems, and Sapiens in the latter. Payments made the weakest contribution, led by underperformers Adyen, Block, and PayPal. Regionally, North America was the only positive contributor, while Europe, Asia Pacific including Japan, and South America were negative.

2023 to date has developed differently than many market participants expected. Global equities have performed quite strongly, although financials and fintechs initially struggled to keep up, lagging the MSCI All Countries substantially. Since the end of May, financials and fintech have enjoyed a strong recovery. For what remains of 2023, the focus continues to be on the ability to generate cash and profitability. Fintech companies that can grow faster will be rewarded with higher valuations. For higher multiples we do need to see lower inflation and lower long bond yields, as that reduces the implied discount rate for long duration assets. Payments should continue to outgrow nominal GDP, especially digital payments, as e-commerce grows faster with continued higher adoption rates. We believe that e-commerce penetration levels will gradually climb in the years to come, which means accelerated growth. We are focused on superior, faster growth business models with strong management teams. After a tough 2022, which followed a too good to be true 2020/2021, 2023 and beyond will hopefully show that fintech offers great long-term growth opportunities at much lower valuation multiples.