Robeco Smart Materials D USD

Pieter Busscher is Portfolio Manager of the Robeco Smart Materials and Robeco Smart Mobility strategies and member of the Thematic Investing team. He started at Robeco in 2007 as a Deputy Portfolio Manager for the Sustainable Water strategy. Pieter became the Portfolio Manager for Smart Materials in 2009; for Smart Mobility he had been Deputy Portfolio for since strategy launch in 2018 and took over the portfolio management responsibilities in 2021. He began his career at Credit Suisse Asset Management in Zurich in 2006. He graduated from the International Business at RSM Erasmus University (Bachelor), the Banking and Finance at the University of St. Gallen (Master) and is a CFA® charterholder. Mutlu Gundogan is Co-Portfolio manager of the Robeco Smart Materials strategy and member of the Thematic Investing team. Prior to joining in 2021, he worked at ABN AMRO – ODDO BHF as a sell-side equity analyst, covering the European Chemicals sector. Before that, he worked as a sell-side analyst at ABN AMRO and Royal Bank of Scotland covering the Materials, Industrials, and Health Care sectors. He started his career in 2003 at Kempen & Co., where he covered the Industrials, Consumer Staples, and Health Care sectors. Mutlu holds a Master’s in Business Administration from Vrije Universiteit Amsterdam. He 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's sustainable investment objective is to help mitigate the resource scarcity challenge within industries while supporting economic growth. Resource scarcity 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.For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on MSCI World Index TRN.

The Advanced Materials cluster saw a modest decline, with gains in Resource Recovery, Transition Metals, and Energy Storage offsetting losses in Specialty Chemicals and Building Efficiency. Resource Recovery led, driven by Renewi's takeover news and Waste Management's strong revenue. Transition Metals benefited from solid results at Boliden and Aperam, despite cautious guidance. Energy Storage advanced as CATL pursued a secondary listing for European expansion, while Specialty Chemicals and Building Efficiency struggled due to pressures on Synthomer, TDK, Owens Corning, and TopBuild. Meanwhile, the Smart Manufacturing cluster underperformed, with weakness across all subclusters. Industrial Automation saw strength in Shenzhen Inovance, while major players struggled. Industry 4.0 Software faced a demand slowdown, affecting PTC, Autodesk, and ARM Holdings. Advanced Equipment was the weakest, hit by AI sector pullbacks, with Onto Innovation and Thermo Fisher suffering from softening demand and funding cuts.

Based on transaction prices, the fund's return was -5.93%. The Advanced Materials cluster ended slightly lower, as gains in Resource Recovery, Transition Metals, and Energy Storage were offset by declines in Specialty Chemicals and Building Efficiency. Resource Recovery outperformed, with Renewi rising on a takeover deal with Macquarie and Waste Management exceeding revenue expectations, supported by strong pricing and acquisition growth. Transition Metals showed strength, with Boliden posting solid results, although it canceled its FY24 dividend for its Lundin acquisition. Aperam beat earnings, though its 2025Q1 guidance was weaker due to lower stainless pricing. Energy Storage posted moderate gains, with CATL advancing on plans for a Hong Kong listing to fund a EUR 7.3 bln Hungarian plant. Specialty Chemicals declined, led by Synthomer and TDK, facing weak demand and pricing pressure. Building Efficiency fell, with Owens Corning and TopBuild struggling due to growth concerns and a slow spring season. The Smart Manufacturing cluster underperformed, with all subclusters weakening. Shenzhen Inovance stood out in Industrial Automation, while Industry 4.0 Software and Advanced Equipment were hit by weak demand and AI sector derating.

2025 presents a unique opportunity to capitalize on both structural trends and cyclical recovery. Global transitions toward net-zero goals, electrification, and automation, alongside pro-growth fiscal and monetary policies, are shaping a favorable investment landscape. Expected growth rates remain robust, with projections in the mid-20% range, further supported by the re-emergence of M&A activity across portfolios. Valuation levels also offer attractive entry points, trading below the benchmark.