RobecoSAM Net Zero 2050 Climate Equities I USD

Chris Berkouwer is Co-Lead Portfolio Manager and member of the Global Equity team. He is responsible for fundamental global equities with a focus on companies in the energy, materials and industrials sectors, climate and portfolio construction. He joined Robeco in 2010. Prior to that, he worked as an analyst for the The Hague Centre for Strategic Studies. He conducted country, industry and company research for various equity teams prior to joining the Global Equity team. He a holds Master's in Business Administration and International Public Management from the Erasmus University Rotterdam.

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 0.01% 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.

Investors who are not subject to (exempt from) Dutch corporate-income tax (e.g. pension funds) are not taxed on the achieved result. Investors who are subject to Dutch corporate-income tax can be taxed for the result achieved on their investment in the fund. Dutch bodies that are subject to corporate-income tax are obligated to declare interest and dividend income, as well as capital gains in their tax return. Investors residing outside the Netherlands are subject to their respective national tax regime applying to foreign investment funds. We advise individual 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 contribute to keeping global temperature rise well-below 2°C by reducing the carbon footprint of the fund. Climate change and sustainability considerations are incorporated in the investment process via exclusions, ESG integration, as well as voting. Firstly, the fund does not invest in stock issuers that are in breach of international norms or where activities have been deemed detrimental to society following Robeco's exclusion policy. This includes activity-based exclusions of Article 12 of the EU regulation on Climate Transition Benchmarks, EU Paris-aligned Benchmarks and sustainability-related disclosures for benchmarks as applicable. Secondly, the fund focuses on investing in companies that have set Net Zero goals by 2050 and examines other financially material ESG factors in the portfolio construction. Thirdly, by restricting the GHG emissions, the carbon footprint of the fund is made lower than that of the Climate transition benchmark to ensure alignment with the desired decarbonization trajectory of 7% year on year. Further, 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.

All the macro talk keeps centering around interest rates. Noteworthy, however, is the lack of interest on the geopolitical front. Whether it's the surprise OPEC decision to significantly cut oil production at a point where most are still struggling with an inflation problem, China's mingling in the Russia/Ukraine conflict, a perhaps seminal change in the relationship between Iran and Saudi Arabia, or huge social unrest in France on pension reforms. All went by relatively unnoticed, but are important macro events to consider. So as we have argued before, it's probably best to brace for a volatile next few months, with equity markets staying somewhat in 'limbo'. Within our investable climate universe, we clearly need to watch secondary and third order effects of tighter lending conditions and a weakening industrial and consumer demand backdrop. Against this background, our climate transition strategy might struggle from a returns point of view in the near term. However, the broadly diversified toolbox of climate solutions we invest in, in combination with the strong secular underpinnings of the climate theme itself, should provide ample opportunities over the long run.