RobecoSAM Smart Materials Equities Z 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.

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 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.The following sections display the ESG-metrics that are relevant 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 [Index name].

In August, the strongest performance came from Automation and Process Control, with equipment producers such as Onto Innovation as well as software names like Autodesk and PTC. In Advanced Materials, which showed a rebound, the strongest moves came from Functional Materials and Efficient Building Materials, continuing the positive trend with the US names TopBuild and Owens Corning. Process Technologies saw most strength in Analytical Instruments with Thermo Fisher, while Recycling was weaker. Transformational Materials was also below average, with Energy Storage Materials weaker, while Efficient Lighting was stronger.

Based on transaction prices, the fund's return was -2.64%. The overall performance of the Transformational Materials cluster in August was negative, most notably within the Energy Storage subcluster. Chilean lithium producer SQM faced a 14% reduction in its stock price, following weaker-than-expected 23Q2 financials due largely to low lithium prices. The Process Technology cluster was down in August. Analytical Instruments was the strongest subcluster, with Themo Fisher positive. Fuel cell producer Plug Power (Cleaner Industrial Solutions) retested the recent lows, despite revenue growth in the quarter. Profitability did not improve, as the new Georgia plant is ramping up and has not reached full production and sales yet. Peer ThyssenKrupp Nucera also reported after the recent IPO and confirmed an increase in sales and EBIT. The hydrogen electrolyzing business should see more additions to the order book over the second half of the year. Smart Manufacturing was flattish again in August, the second-strongest cluster in the month. Semiconductor equipment company ONTO (Automation and Process Control) touched a new all-time high again in sympathy with its peers that had reported strong Q2 results.

Strong secular growth themes related to decreased emissions (net zero targets) and more efficient materials and production techniques (e.g. smart manufacturing) are impacting their respective sectors. More specifically, efficient building materials, 3D software, the Internet of Things and robotics companies are presenting attractive investment opportunities. In the Recycling and Circular Systems investment cluster, which focuses on reusing, recycling and repurposing plastics, attractive opportunities are leading to more circular business models.