Roman Boner is Portfolio Manager of the RobecoSAM Smart Energy Equities strategy. Before joining Robeco in 2021, Roman was a Senior Portfolio Manager at Woodman Asset Management. Prior to that, he spent six years at Swisscanto (later part of Zurich Kantonalbank) as a Senior Portfolio Manager responsible for a sustainable global equity fund and co-manager of the thematic Global Water und Climate Fund. Roman started his career in 1996 at UBS working in different divisions including Private Banking, Asset Management and Trading. In 2003, he became Portfolio Manager at UBS Global Asset Management and, from 2005 onwards, focused on sustainable thematic equities strategies including Energy Efficiency and Climate change accounts. Roman graduated from the University of Applied Sciences Zurich in Economic and Business Administration and is a CFA® charterholder. Michael Studer is Co-Portfolio Manager of RobecoSAM Smart Energy Equities strategy and also covering thematic research with a focus on Technology within the Thematic Investing Energy/Mobility/Materials team. Before joining Robeco in 2021, he spent three years at Acoro Asset Management, where he was an investment manager focused on the IT sector (semiconductors, software and internet). Prior to that, he worked as a Senior Equity Analyst covering IT at Julius Bär, Bank J. Safra Sarasin and as a sellside analyst at Bank am Bellevue with a total 10-year tenure. Michael started his career in 2007 as a consultant for Strategy & Operations in the Financial Services Industry at Deloitte. Michael holds a PhD in Accounting and Controlling and a Master in Information and Technology Management from the University of St Gallen (HSG), as well as a Master in International Management from the Community of European Management Schools (CEMS). He also studied at the Rensselaer Polytechnic Institute (RPI) in Troy, New York (USA).

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's sustainable investment objective is to further the transformation and decarbonization of the global energy sector. The transformation and decabonization of the energy sector and sustainability considerations are incorporated in the investment process by the means of a target universe definition, exclusions, ESG integration, a carbon footprint target 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. The fund's weighted carbon footprint will be equal to or better than that of its Climate Transition Benchmark. 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.The following sections display the ESG-metrics 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 MSCI World Index TRN.

October was a challenging month for global equity markets due to higher rates and a weakening global economy. The Israel-Hamas conflict added to the uncertainty, but its market impact was limited. Global rates were near their yearly high, with US Treasury bonds close to 5%. Eurozone inflation eased to below 3%, its lowest in over two years, while US inflation also declined. The Q3 earnings season began with mixed results, with most companies missing sales projections due to inflation and slowed growth. Regionally, European and Japanese equities were weak, while US equities slightly outperformed. Renewable energy stocks, particularly residential solar stocks, performed poorly due to a weak outlook in the US and slowing growth in Europe. However, the utility scale solar market, particularly in the US, showed strong growth.

Based on transaction prices, the fund's return was -11.98%. In October, the Energy Distribution cluster performed the best, but closed in negative territory. The Q3 earnings season was robust for equipment suppliers like Schneider Electric and Nexans. The Energy Efficiency cluster performed slightly better than the overall fund, with a wide dispersion within the subclusters. Lattice Semiconductor underperformed in the Big Data subcluster, while Vertiv performed well. The Renewable Energy cluster underperformed, with high dispersion within renewable energy stocks. The Wind subcluster outperformed the fund, while the Solar subcluster was the weakest. The Energy Management cluster was the weakest this month, impacted by fears of cyclical softening and weaker demand for electric cars. In storage, battery makers LG Energy and Samsung SDI confirmed some softness in demand, but remain positive on their mid-term opportunity. Within Semiconductor Power Management, Onsemi reported slightly better Q3 results, but guided down Q4 revenue expectations, mainly due to shortfalls in its fast-growing silicon carbide segment.

Inflation in North America and Europe continue its downward path and is approaching more acceptable levels. The Fed tightening cycle will continue for the time being, but we are carefully watching for signs of pivoting as high rates start impacting consumer sentiment and the growth outlook. The renewable energy sector, impacted by rising interest rates, offers attractive entry points. The semiconductor sector is nearing a cyclical bottom, with the electric car trend driving semiconductor content. Industrial companies are normalizing supply chains post-pandemic, with high backlogs driving revenue growth. Interest rates fears may provide opportunities for new positions in industrials. The earnings outlook for 2024 remains positive despite a challenging macro backdrop, with high energy prices and the need for energy independence acting as catalysts for investments in smart energy technologies. The rising carbon price and a clearer regulatory framework incentivize decarbonization. The strategy continues to focus on renewables, smart grid suppliers, power management, and battery companies.