RobecoSAM Circular Economy Equities Z EUR

Stock markets continued their uptrend in February, but reversed their course on increasing concerns over a global growth slowdown due to the coronavirus epidemic. Especially the jump of new cases in Europe spooked investors and caused the worst weekly return since the financial crisis. After reaching all-time highs earlier in the month, all major indices dropped more than 10% from previous highs. The MSCI World lost approx. 8% (in EUR terms) vs. its January close with energy and materials being hit the hardest. The Circular Economy strategy outperformed the stock market in February. Investors turned to sectors associated with non-cyclical growth attributes like packaging, where once again company reports highlighted the shift underway from plastic to other packaging solutions, which will reshape the industry. On a similar note, under the umbrella of the EU New Green Deal, a Circular Economy action plan is expected to be announced in March. According to recent information, the package will be both ambitious and comprehensive, as strong emphasis will be put on keeping products and resources in use like the discussed ‘right to repair’ or a EU strategy for textiles and clothing.

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.

RobecoSAM Circular Economy Equities 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.

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. Building on our proprietary data and research, we identify companies that generate a competitive advantage through sound business practices, efficiency improvements, and the creation of new solutions for the myriad challenges facing society over the coming decades. Taking a long-term investment perspective, we analyze companies’ business models, market positioning and growth potential, and evaluate their financial performance and valuation. Based on this fundamental assessment, we seek to uncover attractive investment opportunities and implement them in concentrated, conviction-based equity portfolios.

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