Robeco Smart Energy I USD

Roman Boner is Portfolio Manager of the Robeco Smart Energy strategy and member of the Thematic Investing team. Before joining Robeco in 2021, Roman was a Senior Portfolio Manager at Woodman Asset Management. Prior to that, he spent six years at Swisscanto (later part of Zurich Kantonalbank) as a Senior Portfolio Manager responsible for a sustainable global equity fund and co-manager of the thematic Global Water and Climate Fund. Roman started his career in 1996 at UBS working in different divisions including Private Banking, Asset Management and Trading. In 2003, he became Portfolio Manager at UBS Global Asset Management and, from 2005 onwards, focused on sustainable thematic equities strategies including Energy Efficiency and Climate change accounts. Roman graduated from the University of Applied Sciences Zurich in Economic and Business Administration and is a CFA® charterholder. Michael Studer is Co-Portfolio Manager of the Robeco Smart Energy strategy and member of the Thematic Investing team. Before joining Robeco in 2021, he spent three years at Acoro Asset Management, where he was an investment manager focused on the IT sector (semiconductors, software and internet). Prior to that, he worked as a Senior Equity Analyst covering IT at Julius Bär, Bank J. Safra Sarasin and as a sellside analyst at Bank am Bellevue with a total 10-year tenure. Michael started his career in 2007 as a consultant for Strategy & Operations in the Financial Services Industry at Deloitte. Michael holds a PhD in Accounting and Controlling and a Master’s in Information and Technology Management from the University of St Gallen (HSG), as well as a Master in International Management from the Community of European Management Schools (CEMS). He also studied at the Rensselaer Polytechnic Institute (RPI) in Troy, New York (USA). Sanaa Hakim is Co-Portfolio Manager of the Robeco Smart Energy strategy and member of the Thematic Investing team. She joined Robeco in 2021 and has 12 years of experience. Prior to joining the firm, Sanaa was a global equity investment professional at Independent Franchise Partners  and a generalist analyst at Capital Group for 5 years in London. Sanaa started her career in 2011 with Ernst and Young in Assurance and Advisory in Paris.

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's sustainable investment objective is to further the transformation and decarbonization of the global energy sector. The transformation and decabonization of the energy sector and sustainability considerations are incorporated in the investment process by the means of a target universe definition, exclusions, ESG integration, a carbon footprint target and voting. The fund only invests in companies that have a significant thematic fit as per Robeco's thematic universe methodology. Through screening on both Robeco's internally developed SDG Framework and Robeco’s exclusion policy, the fund does not invest in issuers that have a negative impact on the SDGs, are in breach of international norms or where products have been deemed controversial. Financially material ESG factors are integrated in the bottom-up fundamental investment analysis to assess existing and potential ESG risks and opportunities. The fund's weighted carbon footprint will be equal to or better than that of its Climate Transition Benchmark. In addition, where a stock issuer is flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to exclusion. 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 World Index TRN.

In October, the global equity market in EUR remained flat as gains accumulated throughout the month were largely wiped out on the final trading day. Market sentiment was heavily influenced by the upcoming US elections, with significant uncertainty surrounding the potential outcome and the possibility of a split government. As election polls and betting platforms indicated an increased likelihood of Trump winning, companies that are expected to benefit from his policies performed strongly, while renewable energy stocks significantly underperformed. Consequently, the dollar strengthened, and long-term yields rose substantially. Additionally, US economic data exceeded expectations, with the Citi Economic Surprise Index nearing a yearly high, increasing the likelihood of a soft landing for the US economy.

Based on transaction prices, the fund's return was -3.46%. The Energy Efficiency cluster was by far the biggest contributor to the fund's performance, with all subclusters delivering positive returns. The Big Data subcluster saw renewed strong investor interest as Big Tech is set to continue spending on AI. The Energy Distribution cluster experienced a mixed, but overall positive month. The Electric Network subcluster was impacted by higher real rates, while Equipment Suppliers continued to outperform the overall strategy supported by strong earnings from Itron, Schneider Electric and Quanta Services. The Energy Management cluster continued to be impacted by the weak automotive sector and posted a negative return. Energy storage did relatively well as lithium prices seem to be closer to the bottom as some M&A talks sparked in the sector, helping lithium miner Albemarle. The Renewable Energy cluster was the weakest performer in the fund. The market anticipated an increased likelihood of a Trump victory in the US election, which is perceived negatively for renewables due to the potential repeal of parts of the supporting Inflation Reduction Act.

Inflation in North America and Europe is gradually decreasing and approaching more acceptable levels. However, it might remain slightly above central banks' targets for a while. The Federal Reserve's tightening cycle has likely shifted due to the negative impact of high rates on consumer behavior and growth outlook. The economic data, including the labor markets, show signs of weakening and we believe the Fed is likely to cut rates further in November. The Renewable Energy cluster, which is sensitive to interest rates, still has strong growth prospects over this decade. Power demand growth is likely to accelerate with the need for additional power for AI data centers. The semiconductor sector is nearing a cyclical bottom, with the electric car trend driving semiconductor content. Industrial companies are normalizing supply chains post-pandemic, with high backlogs driving revenue growth.