RobecoSAM Smart Mobility Equities D EUR

Pieter Busscher is the Cluster Head of the Thematic Investing team covering Energy/Mobility/Materials. He is Portfolio Manager of the RobecoSAM Smart Materials Equities and RobecoSAM Smart Mobility Equities strategies. He focuses on sustainable growth opportunities in new materials, efficiency technologies, reuse of resources and new mobility solutions. He started at Robeco as a Deputy Portfolio Manager for the Sustainable Water strategy. Pieter became the Lead Portfolio Manager for Smart Materials in 2009 and Deputy Portfolio for Smart Mobility at launch in 2018. Prior to joining Robeco in 2007, he began his career at Credit Suisse Asset Management in Zurich. He studied International Business at RSM Erasmus University and Banking and Finance at the University of St. Gallen and is a CFA® charterholder. Clément Chamboulive is a Co-Portfolio Manager of the RobecoSAM Smart Mobility Equities strategy and also covers thematic research within the Thematic Investing Energy/Mobility/Materials team, with a focus on technology. Prior to joining in 2021, he was at the Swiss investment firm 2Xideas, where he worked as an equity analyst focusing on technology. Clément started his career in 2011 at Baillie Gifford, where he was an investment analyst, and then investment manager, on different strategies. Clément holds a BSc (Hons) from the University of Edinburgh and an MSc from ETH Zürich, both in Physics. Giacomo Fumagalli is Co-Portfolio Manager of RobecoSAM Smart Mobility Equities strategy and also covering thematic research within the Thematic Investing Energy/Mobility/Materials team. Prior to joining Robeco in 2019, he worked at Lemanik SA, an investment management company located in Lugano, where he was part of the Italian equities team that managed two mutual funds mainly invested in Italian stocks. Previous to that, he worked as Junior Portfolio Manager at Credit Suisse in Milano, where he started his career in 2012, covering European equities for UHNWI discretionary mandates and was Assistant Portfolio Manager of the CS Equity Italy mutual fund. Giacomo holds a M.Sc. in Finance from Bocconi University in Milano as well as a M.Sc. In Accounting and Control from the Rotterdam School of Management (Erasmus University). He is a CFA® charterholder since 2016.

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 support the transformation and decarbonization of the global transportation sector. The transformation and decarbonization of the global transportation 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 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 MSCI World Index TRN.

The Smart Mobility theme continued to expand, as the transformation of the automotive industry towards electrification continues. China saw NEV sales reach a new record in September, reaching a market share of almost 37%, while at the same time, exports are continuing to grow at 50%. The US market increased 50%, reaching a 7.9% EV share in Q3, up from 6.1% last year and from 7.2% in the second quarter. The EV split of the brands ranges from 0.5% at Toyota to 15.6% at BMW for the US market (outside of the pureplay EV brands).

Based on transaction prices, the fund's return was -12.71%. October was a tough month for semiconductor companies overall. The greatest detractor from performance – down a third – during the period was onsemi, the maker of energy-efficient silicon carbide power electronics and sensors for ADAS applications. October was a weak month across the board for EV manufacturers and companies involved in the battery value chain. Tesla reported Q3 earnings which disappointed on margins as the company has been cutting prices due to increased production volumes (+20% YoY in Q3) in a context of weakening demand caused by higher interest rates. The share price performance was weak, unlike BYD, which was marginally up thanks to a virtuous cycle of increasing volumes and increasing profit per car. The Shenzhen-based OEM is set to sell around 3 million cars in 2023. Holdings in the battery value chain were all negative in October due to a weakening of sentiment regarding EV demand, and a prudent approach towards battery production in order to minimize inventory.

The underlying fundamentals (as reflected by the core themes addressed by the strategy) are very robust. The tight components supply situation is slowly improving. However, some of it may persist for longer, but in the meantime supports semiconductor companies. Technology companies with strong and sustainable moats remain the focus of the strategy's investments. These companies focus on the development of high-voltage electric, low-voltage electronic and software-managed solutions that enable electrification, connectivity and autonomous driving. Other key enabling technologies include battery management systems, power inverters, 3D sensing, big data communication and artificial intelligence (AI). The strategy will also continue to seek exposure to the EV market as well as to companies helping to develop EV infrastructure worldwide.