Robeco Sustainable Global Stars Equities Fund
- Concentrated portfolio
- Focuses on companies with a high return on invested capital and strong free cash flow
- Applies a disciplined approach to valuating companies, sustainability is an integral part of the valuation
About this fund
Price development
Performance
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundPerformances.date,'llll') ]}}| Fund | Reference index | |
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| {{'fund.detail.performance.period.sinceInception' | labelize:[ fundDate(fund.fundPerformances.sinceStart.startDate,'MM-YYYY') ]}} |
Annualized (for periods longer than one year).
Cumulized (total amount of return).
Performances are gross of fees and based on closing values. In reality, costs (such as management fees and other costs) are charged. These have a negative effect on the returns shown.
Performances are net of fees and based on transaction prices.
| Fund | Reference index | |
|---|---|---|
Annualized (for periods longer than one year).
Cumulized (total amount of return).
Performances are gross of fees and based on closing values. In reality, costs (such as management fees and other costs) are charged. These have a negative effect on the returns shown.
Performances are net of fees and based on transaction prices.
Statistics
{{'fund.detail.general.perDate' | labelize:[ fundDate( (fund.fundStatistics.date?fund.fundStatistics.date:fund.fundCharacteristics.date) ,'llll') ]}}| 3 years | 5 years | ||
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| Fund | Reference index | ||
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| Rating | |||
| Option Adjusted Modified Duration (years) | |||
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Dividend paying history
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundFacts.date,'llll') ]}}| Date | Amount |
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Market development
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundInvestmentExplanations.date,'llll') ]}}The month of August did not provide us with more visibility on the geopolitical front. On the contrary, the tension between the authorities in Beijing and Hong Kong worsened, the political fights in both Italy and the UK escalated and the trade saga dragged on with the renminbi breaking the threshold of RMB 7 to the USD. Recession fears increased with more calls for fiscal stimulus on top of the monetary easing we are witnessing. As a consequence the bifurcation between value and high momentum growth names widened and interest yields dropped further with nearly USD 17 tn of negatively yielding debt, mostly in the euro area. The entire yield curve of Germany, including the 30-year Bund, is in negative territory. Balance sheet financials sold off as the economic model is under severe pressure. Barring any severe recession, equities offer a strong alternative with 2.5% dividend yield.
Fund allocation
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundAllocations.date,'llll') ]}}| Name | Sector | Weight |
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Fund Classification
| Yes | No | N/A | ||
|---|---|---|---|---|
| Voting | ||||
| Engagement | ||||
| ESG integration | ||||
| Exclusion |
| Yes | No | N/A | ||
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| Screening | ||||
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| Sustainability Themed Fund |
Currency policy
The fund is allowed to pursue an active currency policy to generate extra returns and can engage in currency hedging transactions.
Dividend policy
In principle the fund distributes dividend on an annual basis. The fund's policy aims at realizing as the maximum possible capital growth within the pre-set risk limits. A high dividend return is therefore not a separate objective.
ESG Integration policy
Robeco Sustainable Global Stars Equities Fund 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.
Investment policy
Our investment philosophy is based on our belief that short-term investors underestimate the long-term value-creation potential of companies. Generally, the market is not prepared to look beyond the short term or to consider the longer-term expectations. This gives us the opportunity to build a concentrated portfolio of 30-40 stocks where our conviction sets us apart from market expectations. With this long term horizon, free cash flow is the key to value creation. We want to select stocks that do not adequately reflect this future value creation. And we want these companies to return this value to shareholders in the form of dividend or share buy backs or to re-invest the value in the company in projects where the return on invested capital exceeds the cost of capital. In cooperation with Robeco Quantitative Research we have developed a model, ranking stocks based on Free Cash Flow Yield, that generates investment ideas for the portfolio. Ideas are further researched by making a preliminary valuation that is based on our proprietary Value Dynamics Framework (VDF) model. VDF is a valuation model that takes into account forecasted revenues, margins, invested capital needed and risk-adjusted weighted average cost of capital (all 4 value drivers). If the valuation upside is sufficient, the analyst prepares an investment case and integrates the ESG factors into the valuation of the company. The VDF is included in the investment case and determines a stock's upside potential. Portfolio managers want to introduce as much upside potential into the Robeco NV-Robeco Global Stars portfolio as possible, taking into account checks and balances (beta, active risk, and checks and limits for regional and sector exposure).
Risk policy
Risk management is fully integrated in the investment process to ensure that positions always meet predefined guidelines.
Expectation of fund manager
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundFacts.date,'llll') ]}}The bifurcation between cyclical value names and secular growth names is now at extreme levels. It has been interesting to see central bank policy around the world really pivot towards supporting growth, in the absence of meaningful inflationary pressure. Our expectation now is that the Federal Reserve will lower rates by 75 to 100 bps during the remainder of 2019 and into 2020. We have seen a similar message from the ECB, where Draghi has also communicated that there is the potential for more quantitative easing, if and when necessary. More supportive central bank liquidity will help to contain overall risk and volatility for developed markets and emerging markets alike. We also look at the outcome of the G20 summit positively. The risk to global economic growth and global equity markets clearly had come from the trade tensions between the US and China, and the potential impact of higher tariffs on Chinese goods exported to the US. While there is no resolution as of yet, at least the two super powers will commence talks again, and we think that a deal before the end of the year is likely. All in all, our outlook for developed markets remains ‘Neutral’.
Jan Keuppens, Michiel Plakman, CFA
Jan Keuppens, Executive Director, is the Head of the Global Equities team. Prior to joining Robeco in 2005, he worked as a Portfolio Manager for Quest Management, AXA IM and Corluy & CO. Jan Keuppens started his career in the investment industry in 1997. He holds a Master's degree in Applied Economic Sciences from the University of Leuven. Michiel Plakman is Portfolio Manager of Robeco Global Stars Equities Fund NV. Michiel Plakman is co-PM for the Global Stars fund. Previously, he was responsible for managing the Robeco IT Equities fund within the TMT team. Prior to joining Robeco in 1999, Michiel Plakman worked for two years as a Portfolio Manager Japan at Achmea Global Investors (PVF Pensioenen). From 1995 to 1997, he held a position as Portfolio Manager European Equities at KPN Pension Fund. Michiel holds a Master's degree in Econometrics from the Free University of Amsterdam and he is a CFA charter holder.
Details
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundFacts.date,'llll') ]}}| Management company | |
| Fund capital | |
| Size of share class | |
| Outstanding shares | |
| ISIN | NL0000289783 |
| Bloomberg | ROBA NA |
| Valoren | 1237582 |
| WKN | 970259 |
| Availability | |
| 1st quotation date | -1004572800000 |
| Close financial year | 31-12 |
| Legal status | |
| Tracking error limit (%) | |
| Morningstar |
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| Reference index |
Cost of this fund
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundCosts.managementFees.date,'llll') ]}}Ongoing charges |
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| This fund deducts ongoing charges of |
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| Management fee | ||
| Service fee | ||
Transaction costs |
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| The expected transaction costs are |
Performance fee |
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| This fund may also deduct a performance fee of |
Extra fees
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| Max switch fee |
Fiscal product treatment
The fund is established in the Netherlands. The fund is managed as a 'naamloze vennootschap' (public limited company). The fund has the status of 'fiscal investment institution' in the sense of article 28 of the Dutch Corporate-Income Tax Act 1969, and, as such, is taxed at a corporate-income tax rate of 0%.The fund is obliged to pay out the realized current income in the form of dividend within 8 months after the end of the financial year. From 1 January 2007 the fund withholds Dutch dividend tax at a rate of 15% from these dividend payments. The fund can in principle use the Dutch treaty network to partially recover any withholding tax on its income.
Fiscal treatment of investor
For private investors residing in the Netherlands real interest and dividend income or capital gains received on their investments are not relevant for tax purposes. Participating units held by private investors who are taxpayers in the Netherlands belong in Box 3. If and insofar as an investor's net assets exceed the net wealth exemption limit, said investor is liable from 1 January to pay 1.2% annually on the balance of his or her net assets. Investors residing in the Netherlands may offset the Dutch dividend tax withheld (15% as at 1 January 2007) against their income-tax payment. Investors who are not subject to (exempt from) Dutch corporate-income tax (e.g. pension funds) are not taxed on the achieved result. Dutch tax-exempt bodies may seek a full refund on the 15% dividend tax withheld on dividends (25% prior to 1 January 2007). Interest income is exempt from tax withheld at source. 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 in their tax return. In principle, Dutch bodies that are subject to corporate-income tax may offset the 15% dividend tax withheld on dividends (25% prior to 1 January 2007) against the corporate-income tax and seek a refund of the excess amount. Investors residing outside the Netherlands are subject to their respective national tax regime applying to foreign investment funds. Shareholders who do not pay tax in the Netherlands and who are resident in countries that have a tax treaty with the Netherlands to prevent double taxation, may seek a refund for part of the Dutch dividend tax from the Dutch tax authorities, depending on the treaty. As of 1 January 2007, a pension fund having its registered office in another EU member state is also entitled to a dividend-tax refund in the Netherlands. The above is based on the current fiscal legislation and regulation.
