RobecoSAM Smart Mobility Equities M2 EUR

Pieter Busscher is Portfolio Manager of the RobecoSAM Smart Materials Equities and RobecoSAM Smart Mobility Equities strategies. He focuses on sustainable growth opportunities in new materials, efficiency technologies, reuse of resources and new mobility solutions. He started at Robeco as a Deputy Portfolio Manager for the Sustainable Water strategy. Pieter became the Lead Portfolio Manager for Smart Materials in 2009 and Deputy Portfolio Manager for Smart Mobility at launch in 2018. Prior to joining Robeco in 2007, he began his career at Credit Suisse Asset Management in Zurich. He studied International Business at RSM Erasmus University and Banking and Finance at the University of St. Gallen 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's sustainable investment objective is to support the transformation and decarbonization of the global transportation sector. The transformation and decarbonization of the global transportation 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.

After a very strong first quarter of the year, the equity market consolidated in April close to its peak of the year within a relatively tight trading range. The Smart Mobility theme continued to expand, as the transformation of the automotive industry towards electrification maintained its momentum. In China, NEV growth continued in March and started to favor pure BEVs even more. Growth was 35% YoY. The comparison with April will start to take into account months with more significant lockdowns last year. Europe saw a mixed picture due to subsidy impacts in Germany. For example, where PHEV declined, while pure BEVs continue to increase.

Based on transaction prices, the fund's return was -8.92%. BYD reported Q1 results with net income up 4x vs last year. The company benefits from a strong line-up of cars across the price spectrum, which positions it well for further growth. The strong growth in Q1 in China came despite the expiry of the EV purchase subsidy. ABB beat Q1 earnings across the segments and showed good growth, with a book to bill of more than 1 leading to increased guidance. As supply chains ease, margin improvements and backlog conversion set the company up well for growth in 2023. The market is looking for the CMD at the end of the year for potentially higher targets. STMicroelectronics was weaker after Q1 numbers, as automotive and industrial business trends stay strong. Margins were strong, but may soften in the second half on plant conversion. Valuation remains very attractive.

The underlying fundamentals (as reflected by the core themes addressed by the strategy) are very robust. The tight components supply situation is slowly improving. However, some of it may persist for longer, but in the meantime support semiconductor companies. Technology companies with strong and sustainable moats remain the focus of the strategy's investments. These companies focus on the development of high-voltage electric, low-voltage electronic and software-managed solutions that enable electrification, connectivity and autonomous driving. Other key enabling technologies include battery management systems, power inverters, 3D sensing, big data communication and artificial intelligence (AI). The strategy will also continue to seek exposure to the EV market as well as to companies helping to develop EV infrastructure worldwide.