Robeco Global Consumer Trends B USD

Jack Neele is Portfolio Manager of the Robeco Global Consumer Trends strategy and member of the Trends Equities team. Jack started his career in the investment industry in 1999 and prior to joining Robeco, he was a Global Equity Portfolio Manager at Fortis MeesPierson. He holds a Master’s in Econometrics from Erasmus University Rotterdam and is a Certified European Financial Analyst. Richard Speetjens is Portfolio Manager of Robeco Global Consumer Trends strategy and member of the Trends Equities team. He has managed the strategy since December 2010. He joined Robeco as a Portfolio Manager European Equities in 2007. Previously, Richard was Portfolio Manager European Equities at Van Lanschot Asset Management and at Philips Investment Management. Richard has a Master's in Business Economics and Finance from Maastricht University 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.

Geopolitical tensions with China, a war in Europe, a mini-banking crisis and concerns about the debt ceiling in the US, everything is happening at the same time. Yet, equity markets remain unperturbed, helped by big tech stocks that continued their solid gains for the year with better-than-expected results. As a result, the S&P 500 Index rose 1.5% in April and is now up 8.6% for the year. The MSCI Emerging Markets Index is up just 2.2% so far in 2023, while the MSCI All Country World Index (in EUR) fell 0.2% (rose 1.4% in USD) last month. Emerging market stocks lagged due to concerns about the pace of the economic recovery in China. In Europe, the FTSE Eurotop 100 posted a 2.1% rise, the fourth straight month of gains. Similarly, the TOPIX Index of the largest Japanese businesses rose 2.7% and has gained every month this year.

Based on transaction prices, the fund's return was 2.10%. After three consecutive positive contributions, our Digital Transformation of Consumption theme made a negative contribution. The main culprit was Tesla, where shares declined 21% last month. On the other hand, Fiserv shares closed at a 52-week high after the merchant acquirer lifted the lower end of its revenue guidance and reported a solid start to the year. Our Emerging Middle Class exposure made a neutral contribution. There was a clear distinction between the direct and indirect exposure last month, with the directly exposed companies all under pressure. The pressure was the most among the Chinese e-commerce players – both PDD and Alibaba lost significant ground. Finally, our Health and Wellbeing trend made a large positive contribution last month as defensive stocks came back on to investors' radars.

A regime of rising interest rates presents a more challenging environment for companies with high long-term growth potential. Luckily, central banks have indicated that we are nearing the end of interest rate increases and high but easing levels of inflation may support investor sentiment in the first half of the year. We remain steadfast in our belief that long-term investors should focus on high-quality businesses with valuable intangible assets, low capital intensity, high margins and superior returns on capital. Companies with these traits have historically delivered above-average returns, while offering downside protection in volatile market environments. Firms that exhibit these characteristics are poised to deliver healthy revenue and earnings growth in the future and we therefore expect them to continue to generate attractive long-term returns. We believe premium valuations for these businesses are justified given the quality of their business models, the high levels of earnings growth and the sustainability of their franchises. We continue to have a positive long-term outlook for our investments.