Robeco Global Consumer Trends M EUR

Jack Neele is Portfolio Manager of the Robeco Global Consumer Trends strategy and member of the Thematic Investing team. Jack started his career in the investment industry in 1999 and prior to joining Robeco, he was a Global Equity Portfolio Manager at Fortis MeesPierson. He holds a Master’s in Econometrics from Erasmus University Rotterdam and is a Certified European Financial Analyst. Richard Speetjens is Portfolio Manager of Robeco Global Consumer Trends strategy and member of the Thematic Investing team. He is also Deputy Head of Thematic Investing. He has managed the strategy since December 2010. He joined Robeco as a Portfolio Manager European Equities in 2007. Previously, Richard was Portfolio Manager European Equities at Van Lanschot Asset Management and at Philips Investment Management. Richard holds a Master's in Business Economics and Finance from Maastricht University and is a CFA® Charterholder.

The fund is established in Luxembourg and is subject to the Luxembourg tax laws and regulations. The fund is not liable to pay any corporation, income, dividend or capital gains tax in Luxembourg. The fund is subject to an annual subscription tax ('tax d'abonnement') in Luxembourg, which amounts to 0.05% of the net asset value of the fund. This tax is included in the net asset value of the fund. The fund can in principle use the Luxembourg treaty network to partially recover any withholding tax on its income.

The fiscal consequences of investing in this fund depend on the investor's personal situation. For private investors in the Netherlands real interest and dividend income or capital gains received on their investments are not relevant for tax purposes. Each year investors pay income tax on the value of their net assets as at 1 January if and inasmuch as such net assets exceed the investor’s tax-free allowance. Any amount invested in the fund forms part of the investor's net assets. Private investors who are resident outside the Netherlands will not be taxed in the Netherlands on their investments in the fund. However, such investors may be taxed in their country of residence on any income from an investment in this fund based on the applicable national fiscal laws. Other fiscal rules apply to legal entities or professional investors. We advise investors to consult their financial or tax adviser about the tax consequences of an investment in this fund in their specific circumstances before deciding to invest in the fund.

The fund incorporates sustainability in the investment process through exclusions, ESG integration, engagement and voting. The fund does not invest in issuers that are in breach of international norms or where activities have been deemed detrimental to society following Robeco's exclusion policy. Financially material ESG factors are integrated in the bottom-up investment analysis to assess existing and potential ESG risks and opportunities. In the stock selection the fund limits exposure to elevated sustainability risks. The fund targets at least 20% lower carbon footprint compared to the reference index. In addition, where a stock issuer is flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to engagement. Lastly, the fund makes use of shareholder rights and applies proxy voting in accordance with Robeco's proxy voting policy.The following sections display the ESG-metrics for this fund along with short descriptions. For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on MSCI All Country World Index (Net Return, EUR).

The US economy expanded by 2.8% at an annualized rate in the third quarter. With inflationary pressures easing in the Eurozone, the European Central Bank further cut interest rates to 3.25%. The rate cuts are intended to provide a jolt to Europe’s economy, which is being held back by a mild recession in Germany. German car markets in particular are under pressure from the competitive threat of cheap Chinese vehicles. The European Union has now imposed new tariffs on Chinese electric vehicles. Longer term borrowing costs have risen quite sharply in both Europe and the United States. The yield on 10-year US Treasury bonds has climbed to 4.3%, up 70 basis points since the Federal Reserve first cut rates in the middle of September. As a result, slower growth and defensive stocks have been under pressure, but many technology stocks were able to power through the underlying weakness. The S&P-500 Index closed at the 47th new all-time high on October 18th before giving back the gains and dropping into negative territory.

Based on transaction prices, the fund's return was 0.32%. The portfolio performed in line with global markets last month. Within our digital transformation of consumption theme, NVIDIA reached a new all-time high last month. NVIDIA (+9%) is looking to overtake Apple as the world’s most valuable company again. Netflix shares gained 7% in October and have gained more than 50% in 2024. Our rise of the middle-class theme delivered a neutral contribution to the return of the strategy. The resurgence of the Chinese stock market meant investors pulled funds from well-performing markets like India. Our holdings in India, like Hindustan Unilever (-15%) and Asian Paints (-12%) both struggled, but were offset by strength in Nu Holdings, whose shares rose 11% in October. The cosmetics market remains challenging with both L’Oréal (-14%) and Beiersdorf (-8%) trading down. The health & wellbeing bucket delivered a negative contribution. Givaudan especially delivered an exceptional result with organic growth in the double-digits. The cosmetics market remains challenging with both L’Oréal (-14%) and Beiersdorf (-8%) trading down.

Softer macroeconomic data has given central banks ammunition to start cutting interest rates. The European Central started cutting rates earlier in the first half and in the United States, investors expect multiple rate cuts. Our quality growth style seems well suited for the current investment climate. Our balanced approach should provide downside protection, while also offering the structural growth to participate in the upside. Valuations have normalized, although we believe premium valuations for these businesses are justified given the quality of their business models, the high levels of earnings growth and the sustainability of their franchises. We continue to have a positive long-term outlook for our investments.