RobecoSAM Global Gender Equality Equities Z EUR

Audrey Kaplan is Lead Portfolio Manager and member of the Global Equity team. She is responsible for fundamental global equities with a focus on gender-based investing and on companies in financials, consumer staples, and portfolio construction. She joined Robeco in 2021. Previously, she was Head of Global Equity Strategy at Wells Fargo Investment Institute (NY). Prior to joining Wells Fargo, she worked as Head of International Equity Team and Senior Portfolio Manager at Federated Investors, Inc. (NY, now known as Federated Hermes). She also held roles in European research at Merrill Lynch International (London) and in Asian research at Salomon Brothers, Inc. (Tokyo) earlier in her career. She holds a Master's in Finance from London Business School and a Bachelor’s in Computer & Systems Engineering from Rensselaer Polytechnic Institute. Michiel Plakman is Lead Portfolio Manager and member of the Global Equity team. He is responsible for fundamental global equities with a focus on SDG investing and on companies in information technology, real estate and portfolio construction. He has been in this role since 2009. Previously, he was responsible for managing the Robeco IT Equities fund within the TMT team. Prior to joining Robeco in 1999, he worked as a Portfolio Manager Japan at Achmea Global Investors (PVF Pensioenen). From 1995 to 1996 he was Portfolio Manager European Equities at KPN Pension Fund. He holds a Master's in Econometrics from Vrije Universiteit Amsterdam and he 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 by the means of a target universe definition, exclusions, negative screening, ESG integration, and voting. The fund invests at least two-thirds in companies that have a Gender Equality score of 50 or higher and only invests in companies with positive or neutral SDG scores based on the internally developed SDG Framework. The fund also applies a negative screening to exclude the 20% worst ESG scoring stock issuers from the investable universe and does not invest in stock issuers that are in breach of international norms or where products have been deemed controversial as per Robeco's exclusion policy. Financially material ESG factors are integrated in the bottom-up fundamental investment analysis to assess existing and potential ESG risks and opportunities. 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 Jan-Feb risk-on rally in global equity markets stalled, as markets were hit by worries that stubborn inflation may require further tightening and for longer than previously anticipated. The MSCI World was flat (-0.1%) for February. The MSCI Europe region led returns (+1.8%), as several early February business surveys were positive on global growth, with European composite PMIs moving back into expansionary territory. However, several signs of persistent services inflation remain. Central banks may have to hike further to keep inflation cooling. Globally, some sectors that lagged the most during 2022 led returns, including information technology and consumer discretionary. Performance indicates the market is assuming no recession, which is supported by strong spending in the US and unemployment near historic lows. Stronger-than-expected inflation data was reported in Spain and France; the highest level since 1985. And the US 2Y yield is at its highest level since 2007. Investors are weighing strong consumer data (and China reopening) against further rate hikes and we continue to position the portfolio cautiously.

Based on transaction prices, the fund's return was 0.11%. In February, the portfolio was flat (0.11%) and modestly outperformed the MSCI World, mainly driven by broad-based favorable stock selection across multiple sectors, including materials, healthcare and communication services. AstraZeneca provided reassuring guidance. The company expects more than 30 Phase-3 drug trials to be initiated in 2023, including many new late-stage trials, with 10 having the potential to deliver blockbuster sales. Linde also reported a solid beat of 22Q4 results and raised guidance for 2023, as the company sees continued strength in its core business. Within technology, all three semiconductor companies continued their YTD positive contribution. While stock selection overall was positive, bank stock selection detracted, where higher provisions for the industry overall as well as 'higher for longer' rates are creating additional risks, even among the high-quality franchises with strong loan growth. Our focus on D&I-leading companies that promote gender equality and diversity kept us from owning Tesla and Apple, which were two top-performing names in the benchmark. Lack of exposure to these names hurt our relative performance.

We are awaiting more confirmation of lower inflation indeed materializing. Most central banks might be in for a slowdown of rate hikes in 2023. Nonetheless, the new neutral rate level – wherever that may end up – remains firmly higher than what we have seen in many years. We believe that the market is too optimistic and will continue to underestimate the stickiness of inflation, which is still at very elevated levels. With market valuations not anywhere close to trough levels to reflect these uncertainties, risk is still to the downside. Too many pockets in the market simply have not seen real multiple compression, with negative earnings revisions looming as we enter 2023. As we have communicated before, caution is still warranted, given the current macro conditions. To navigate this environment, portfolio robustness is needed. Focusing on a diverse mix of high-quality companies with strong operational track records and resilient business models is, therefore, something we continue to do with our investment strategy.