RobecoSAM Circular Economy Equities Z EUR

Global equity markets continue to be driven by positive sentiment on the economic recovery for the second half of the year when the pandemic will abate. After an already very positive first quarter, the MSCI World Index (in euro terms) advanced further in April and is now up almost 12% for the year. The performance of the global markets during the month was led by sectors such as technology, materials and finance, while sectors such as healthcare and consumer discretionary lagged modestly.Economic indicators paint an uneven picture. In the US, solid growth at a rate of around 6% is expected for 2021, driven by President Biden's plans for three economic stimulus and recovery programs, which if decided on in their current form, would amount to more than USD 4 trillion. Of relevance for the Circular Economy strategy, the infrastructure program could create a substantial tailwind for companies in the recycling and resource reduction space. On the other hand, recent indicators for the manufacturing sector in Germany and France have pointed to negative growth due to higher input and shipping prices.

The fund is allowed to pursue an active currency policy to generate extra returns.

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

The RobecoSAM Circular Economy Equities strategy invests in global companies providing circular solutions that create value in loops via reuse, redesign, repair, responsible consumption. It employs systematic, bottom-up stock selection that combines proprietary Environmental, Social & Governance (ESG) data and research throughout the investment process. ESG criteria for exclusions and theme-specific suitability are applied during universe construction. An in-house Sustainability Investing (SI) research team integrates financially-material sector and company-specific sustainability analysis into investment cases. A dedicated thematic equity team incorporate SI research within fundamental analysis and stock valuations. Impact assessments of controversial incidences affecting portfolio holdings provide additional risk management. An active ownership and engagement team interacts directly with company management of fund holdings, offering additional channels for sustainable impact.

RobecoSAM Sustainable Circular Economy Equities is an actively managed fund that invests globally in companies that foster resource-efficient business models with regard to the production and consumption of consumer goods. The selection of these stocks is based on fundamental analysis. The fund's objective is to achieve a better return than the index. The fund has sustainable investment as its objective within the meaning of Article 9 of the European Sustainable Finance Disclosure Regulation. The fund fosters resource-efficient business models for production and consumption of consumer goods, aligned with Circular Economy principles, by investing in companies that advance the following UN Sustainable Development Goals (UN SDGs): Zero Hunger, Good health and well-being, Decent work and economic growth, Industry, innovation and infrastructure and Responsible consumption and production. The fund integrates ESG (i.e. Environmental, Social and corporate Governance) in the investment process, applies an exclusion list basis controversial behavior, products (including controversial weapons, tobacco, palm oil and fossil fuel) while avoiding investment in thermal coal, weapons, military contracting and companies that severely violate labor conditions, next to voting and engaging.The strategy integrates sustainability criteria as part of the stocks selection process and through a theme specific sustainability assessment. The portfolio is built on the basis of an eligible investment universe that includes companies whose business models contibute to the thematic investment objectives. The assessment regarding relevant SDGs uses an internally developed framework about which more information can be obtained via the website www.robeco.com/si. The majority of stocks selected will be components of the Benchmark, but stocks outside the Benchmark may be selected too. The investment policy is not constrained by a benchmark but the fund may use a benchmark for comparison purposes. The fund can deviate substantially from the issuer, country and sector weightings of the Benchmark. There are no restrictions on the deviation from the Benchmark. The Benchmark is a broad market weighted index that is not consistent with the sustainable objective of the fund.

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