Robeco Sustainable European Stars Equities D EUR

After the European equity market sharply contracted in May, shares regained most of the losses in June and closed the first half of 2019 more than 16% higher. While economic indicators were almost unchanged compared to the muted outlook from a month ago, the commitment of the European Central Bank to support the stalling economy by sticking to the expansive monetary police supported equities’ market sentiment. Eurozone short-term interest rates reached new all-time lows since the inception of the currency after Mario Draghi pointed to more stimulus. With the exception of real estate, all the sectors in the MSCI Europe Index ended the month of June in positive territory. Unsurprisingly, more cyclical sectors such as materials, consumer discretionary and industrials gained the most.Despite the fact that there were hardly any changes in earnings expectations, global mining company Anglo American, for example, gained around 17% in the month and surpassed its over-the-cycle peak share price from April. Within consumer discretionary, shares of French automotive supplier Valeo, which lost more than 50% from its peak in early 2018, showed a glimpse of optimism and increased by more than 20%, albeit from a low level.

To reduce any possibility of large currency deviations relative to the benchmark which heighten the level of risk, the fund may bring exposure into line with the currency weights of the benchmark by carrying out currency forward transactions.

The fund does not distribute dividend; any income earned is retained, and so the fund's entire performance is reflected in its share price.

Robeco Sustainable European Stars Equities integrates ESG at different stages of the investment process. We use sustainability performance rankings to focus our fundamental analysis on companies that have demonstrated superior sustainability performance compared to their peers. We then analyze the impact of financially material ESG factors to a company’s competitive position and value drivers. We believe that this enhances our ability to understand existing and potential risks and opportunities of a company. If ESG risks and opportunities are significant, the ESG analysis could impact a stock’s fair value and the portfolio allocation decision. Throughout the investment process, we strive for a low environmental impact, as measured by GHG emissions, energy consumption, water use and waste generation, with the aim of realizing 20% better levels than the index. In addition to ESG integration, Robeco conducts proxy voting and engagement activities focused on specific themes, such as climate change, aiming to improve a company’s sustainability profile. Furthermore, the fund will not invest in companies exposed to the following controversial sectors or business practices: military contracting, controversial weapons, fire arms, UN Global Compact breaches, tobacco, palm oil and thermal coal, according to strict revenue thresholds.

Our investment philosophy is grounded in the core belief that the integration of ESG factors into a disciplined, research-driven investment process leads to better-informed investment decisions and better risk-adjusted returns through an economic cycle.

Risk management is fully integrated into the investment process to ensure that positions always meet predefined guidelines.