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 that are relevant 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 [Index name].

August was the weakest month for global equities in about eight months after markets retreated on concerns over China and a continued rise in interest rates, which only reverted in the last days of August. The US credit rating downgrade caused additional uncertainty. Fears about the economic development in China came to the fore in the second half of the month. There is increased evidence that China's economy is struggling to recover from its pandemic lockdowns together with concerns over its vast real estate sector. On the other hand, robust US economic data and high Eurozone core inflation have forced investors to rethink the path of inflation and interest rates. The Fed's Jackson Hole Economic Symposium did not provide any future clarity about the interest rate policy. Inflation in all large economies is clearly above the target rate of 2%, except in China. Therefore, it is unlikely that central banks are done yet, which might keep markets nervous.

Based on transaction prices, the fund's return was -5.11%. The market reversal that led to a general risk-off sentiment favored the Energy Distribution cluster, which was the strongest cluster in August. In particular, equipment suppliers with strong secular growth stories had a strong relative performance, such as Quanta Services, which benefits from investments into the US grid, and nVent, which has a strong exposure to data center buildouts and the electrification of the economy. The performance of the Energy Efficiency cluster was ahead of the overall fund, but with a wide dispersion within the subclusters. Performance was fueled by the Big Data subcluster that benefited from continued strong news flow around AI. Energy Efficiency Transport performed the worst due to poor market sentiment. The Renewable Energy cluster was weak again in the month of August, as subsidies in the US and Europe will probably show their effects only later in the year, while some end markets face inventory correction issues. The Energy Management cluster was hardest hit by the reversal in market sentiment. Particularly the Semiconductor Power Management subcluster suffered from Infineon not raising its guidance.

Inflation in North America and Europe has likely peaked, but fears remain that inflation will stay higher for a while. This year's banking crisis is likely to lead to some further tightening of financial conditions, even without the Fed becoming more restrictive. The long-term interest rates have started to reflect this new outlook and are trading close to the levels of the beginning of the year. The excitement about AI is likely to accelerate capex for data centers and help overcome any weakness in the consumer or industrials end market for the semiconductor industry. Therefore, we are confident on the earnings outlook of our portfolio for 2023, even with a more challenging macro backdrop, as high energy prices and the urgent need for energy independence act as catalysts for more investments in energy technologies. The fund management team remains constructive on the mid to long-term prospects of our holdings.