Robeco Global Consumer Trends M EUR

Jack Neele is Portfolio Manager of the Robeco Global Consumer Trends strategy and member of the Thematic Investing 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 Investing team. He is also Deputy Head of Thematic Investing. 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. The fund targets at least 20% lower carbon footprint compared to the reference index. 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).

Japan's leading stock indices suffered significant losses in early August, following the Bank of Japan's decision to raise interest rates for the second time in 17 years. The TOPIX dropped by 12% in a single day, marking its worst performance since 1987, as the BoJ increased its key interest rate to approximately 0.25%. This triggered a rapid unwind of the global carry trade, causing the yen to strengthen nearly 10% within days. The yen's rise from JPY 161 to JPY 145 per dollar led to significant losses in carry trades, impacting Japanese equities, gold, and crypto markets. However, markets stabilized after the BoJ signaled caution on future rate hikes. By the end of August, the TOPIX had recovered much of its losses. Meanwhile, easing inflation in the US, with rates falling below 3%, increased expectations of Federal Reserve rate cuts. Additionally, the S&P 500's performance indicated a market broadening, with the equal-weighted index hitting a new high. The MSCI All Country World Index posted modest gains, and Robeco Global Consumer Trends outperformed strongly in August.

Based on transaction prices, the fund's return was 2.04%. In the Digital Transformation of Consumption theme, Airbnb shares dropped 16% due to weaker US travel demand and shorter booking lead times. Amazon and Alphabet fell 5%, with Amazon missing revenue projections and Alphabet facing regulatory risks, prompting a portfolio weight reduction. NVIDIA gained 2% despite a 6% dip after earnings. Netflix rose 11% on strong ad-tier growth, and Adyen jumped 17% on market share gains. In the Rise of the Middle Class theme, MercadoLibre (+23%) and Nu Holdings (+24%) yielded strong financial results. Costco gained 9%, reaching a new high, supported by increased sales and upcoming membership fee hikes. In the Health & Wellbeing theme, consumer staples outperformed, with Procter & Gamble (+7%) and Colgate (+7%) rallying to new highs. Mars' USD 36 billion acquisition of Kellanova boosted the sector, with staples like Colgate and Unilever up 36% year-to-date. Ferrari (+18%) also hit a new high on strong sales visibility.

From a macroperspective, we have reached the start of a potential series of interest rate cuts by central banks. The European Central Bank has already started cutting rates and investors expect multiple rate cuts in the United States before year's end. Given the uncertain macro and geopolitical environment, a quality growth investment style seems well suited for the current investment climate. Our balanced approach should provide protection to the downside, while also providing enough structural growth to participate in the upside. 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. We continue to have a positive long-term outlook for our investments.