Robeco Global Consumer Trends D HKD

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 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].

Market gains reversed due to weak sentiment in China, but the US maintains strong economic data, particularly in the labor market, with low unemployment. Inflation concerns persist, leading to rising US interest rates (10-year Treasuries at 4.1%). Europe also sees low unemployment and anticipates rate hikes due to elevated core inflation above the ECB's target. In August, the S&P 500 Index fell by 1.8%, driven by losses in utilities and consumer staples, while the energy sector saw gains. The FTSE Eurotop 100 fell 2.7%, while Japan's TOPIX Index saw a 0.4% gain, marking its eighth consecutive month of growth. Emerging markets declined by 6.4%, largely due to concerns in the Chinese property market and weak macroeconomic data, leading to two interest rate cuts by the People's Bank of China (PBoC). The MSCI All Country World Index (in EUR) dropped 1.3% (-2.8% in USD) last month. Robeco Global Consumer Trends slightly lagged the reference index and returned -1.7% (-3.3% in USD). Year-to-date returns remain very pleasing at 21.9% (23.9% in USD) compared to 12.9% (14.8% in USD) for the MSCI ACWI Index.

Based on transaction prices, the fund's return was -2.86%. In August, the Digital Transformation of Consumption theme made a negative contribution, primarily due to a significant decline in Adyen (-54%), driven by slowing revenue growth and margin correction. Airbnb (-14%) also saw a decrease, despite solid results. Visa (+3%) and Mastercard (+5%) reached all-time high share prices with steady revenue growth. NVIDIA (+6%) continued its impressive run with 88% revenue growth. The Emerging Middle Class theme made a neutral contribution, with luxury goods holdings like LVMH (-8%) and Richemont (-10%) lagging due to weak sentiment in China. Chinese e-commerce holdings Alibaba (-8%) and PDD Holdings (+10%) had mixed results. MercadoLibre (+11%) continued its strong operational momentum. In Health & Wellbeing, Novo Nordisk (+17%) ended the month as the largest company by market cap in Europe. Unicharm (+10%) also posted solid results, while Nike (-8%) and L'Oréal (-4%) faced challenges due to weak sentiment. IDEXX Laboratories (-8%) saw a drop, despite 10% organic growth and raised guidance.

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.