Robeco Global Consumer Trends D EUR

Jack Neele is Portfolio Manager of the Robeco Global Consumer Trends strategy and member of the Thematic Investment 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 Thematic Investment 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 holds 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.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 All Country World Index (Net Return, EUR).

October was a rough month for equity markets, as 10-year yields marched higher and – in the United States – briefly touched the magical 5% barrier before retreating. For most of the year, investors had been expecting a recession, driven by the ever-increasing interest rates. However, consumer spending has stayed robust. China, which has been suffering from a property crisis and lackluster consumer spending following the harsh lockdowns, has rolled out a stimulus plan to shore up the economic recovery. In Western economies, inflation is falling and central banks in Britain, the European Union and the United States may have stopped tightening. While interest rates may remain high, they are unlikely to rise much further, and in case major economies do slide into a recession, central banks now have plenty of dry powder available. Therefore, the current environment feels like one where investors have reason to slowly become more positive again.

Based on transaction prices, the fund's return was -1.05%. In October, our Digital Transformation of Consumption theme made a slight negative contribution. Airbnb's shares decreased by nearly 14%, and companies like Tesla (-20%) and Mercedes (-16%) also saw declines due to increasing industry competition. On the other hand, our Emerging Middle Class trend made a modest positive contribution last month. Latin American digital bank Nubank, trading under Nu Holdings, saw a 13% rise as investors gained confidence in its long-term prospects. Chinese e-commerce platform Pinduoduo (PDD) also experienced a 3% increase. In October, our Health & Wellbeing trend demonstrated a strong relative performance, with our holdings Novo Nordisk (+5%) and UnitedHealth (+6%) performing well. Sporting goods stocks had a positive month, and even though the year-to-date performance for Lululemon (up 25%) and Nike (-10%) varies, the overall environment is showing improvement.

From a macro perspective, we are most likely nearing the end of interest rate hikes by central banks. We remain convinced 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. 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. Valuations have derated to more normal levels, although 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.