Robeco Sustainable Water G GBP

Dieter Küffer is Portfolio Manager of the Robeco Sustainable Water strategy and member of the Thematic Investing team. He has managed the strategy since inception in 2001, the year he joined Robeco. In the past, he has also managed several other thematic strategies at Robeco. Prior to joining, he led a team responsible for the management of actively managed equity mandates on behalf of Swiss institutional clients at UBS Asset Management in Zurich. He began his career as an investment counsel in the Private Banking Division of UBS in 1986. Dieter Küffer holds a federal diploma as a Swiss-Certified Banking Expert and is a CFA® Charterholder. Amy Wanner-Thavornsuk is Co-Portfolio Manager of the Robeco Sustainable Water strategy and member of the Thematic Investing team. Prior to joining in 2019, she worked for 9 years at JPMorgan Assets Management in London, including her role as a senior fundamental analyst covering emerging market equities. She has been in the Financial Industry for 20 years with previous work experience in investment banking and consulting. She started her career as an auditor at PWC in Bangkok back in 2003. Amy holds a Bachelor of Science in Finance & Accounting from the Chulalongkorn University in Thailand and an MBA from the Bayes Business School, UK. She 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 help mitigate the global challenges related to scarcity, quality, and allocation of water. Water 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. The integration of ESG factors in the investment analysis does not have a sustainability indicator. 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.For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on MSCI World Index TRN.

The index measured by MSCI World was down 7.9% in EUR terms, fluctuating over the month given investors concerns over potential tariffs and economic growth. US equity markets retreated in March amid rising economic uncertainties, policy developments, and escalating geopolitical tension. Technology-related companies faced strong pullbacks of share prices. In the US, President Trump's aggressive tariff threat against trading partners caused rising concerns in equity markets, as fear for recession kicks in. It is also unsurprising that the Federal Reserve decided to take no action over the quarter. Tariff announcements heavily influenced market movements given uncertainty and volatility. In Europe, Germany announced planned investments of EUR 500 bln in infrastructure, as well as allowing increased defense spending from previous debt limit. European equity had a strong rally after the announcement and then gave back some of its performance toward month-end. Other non-US equity markets did a bit better; however, they also ended the month in red territory due to increased trade tension.

Based on transaction prices, the fund's return was -5.21%. The fund performance was down 6.3% in EUR, outperforming the index measured by MSCI World. Overall political events including tariff announcements also put pressure on the fund. The Utilities cluster provided diversification, thus contributing 93 bps to relative outperformance. Veolia's share price was up +10% in March, due to market rotation, good execution and valuation. However, industrial waste management companies such as Clean Harbors suffered from negative sentiment toward lower industrial activities. The Capital Goods & Chemicals cluster underperformed, driven by negative sentiment toward US industrial activities. European names were less negatively impacted. The Construction & Materials cluster showed a mixed performance. US names underperformed given fear of demand destruction from increasing tariffs, while our EU names held up much better. Infrastructure works should hold up well, as we pass this short-term business disruption caused by DOGE. The Quality & Analytics cluster underperformed due to uncertainty surrounding funding for the National Institutes of Health (NIH). The companies in the fund have limited exposure to NIH funding, but cuts in research funding could significantly affect the development of new treatments.

Despite short term volatility, long-term structural needs in water space remain unchanged. We are monitoring the development of economic data and the easing cycle, while maintaining our fundamental approach and valuation. Significant investments in water infrastructure financing are happening at municipal and state levels in the US, which is likely to continue based on regional needs that fall outside of federal funding. Investments in water efficiency and treatment are increasingly being funded by private money, including from the commercial and industrial sectors. Overall, the fund is still overweight in water analytical equipment. Building materials and water treatment systems are neutrally weighted. Many of the holdings are companies with significant exposure to addressing aging water infrastructure, water quality, water scarcity and efficiency. The fund is overweight in Veolia Environnement and holds no Brazilian water utilities. UK utilities will be neutrally weighted after the final determination by the UK regulator.