RobecoSAM Smart Energy Equities X USD

Global stock markets took a breather on their upward path after reaching a new all-time high. Overall economic growth continues to be robust and financial conditions remain very loose. Increased supply/demand imbalances across various industries led to further price increases, which drove up inflation expectations. Within the energy complex, soaring natural gas prices rippled through heavy industries and the electricity markets. Some companies had to suspend or reduce production because of the spiking energy prices. Moreover, the carbon price in Europe reached its new all-time high, above EUR 65 per ton. Corporate earnings remained strong and most companies beat expectations, which led to a further earnings upgrade for this year.

The fund is allowed to pursue an active currency policy to generate extra returns and can engage in currency hedging transactions.

In principle the fund does not intend to distribute dividend and so both the income earned by the fund and its overall performance are reflected in its share price.

The RobecoSAM Smart Energy Equities strategy invests in companies that provide competitive and sustainable solutions to the growing need for clean, efficient, and reliable energy production and 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 Smart Energy Equities is an actively managed fund that invests globally in companies that provide competitive and sustainable solutions to the growing need for reliable, clean & affordable energy supply. 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 furthers the decarbonization of the global energy sector through investments in clean energy sources, energy efficient products and infrastructure and by the electrification of the industrial, transportation and heating sectors. This is done by investing in companies that advance the following UN Sustainable Development Goals (UN SDGs): Affordable and Clean Energy goal, Decent work and economic growth, Industry, innovation and infrastructure, Sustainable cities and communities, Responsible consumption and production and Climate action. 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.