Robeco Global Consumer Trends B USD

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, USD).

In late September, China's central bank introduced measures to boost the local stock and property markets, including a policy interest rate cut and a directive for banks to lower mortgage rates on existing home loans. This triggered a strong recovery in Chinese stocks, with the Shanghai Composite rebounding from a 52-week low earlier in the month to a 52-week high by month-end. In the US, the Federal Reserve cut interest rates for the first time in four years, aiming for a 'soft landing' to control inflation without triggering a recession. Fed Chair Jerome Powell signaled additional cuts for 2024, with headline inflation easing to 2.5%, though core inflation remains high. Meanwhile, the European Central Bank (ECB) lowered rates further, bringing its deposit rate to 3.5%, as Eurozone inflation dropped to 1.8%, below the 2% target. The MSCI All Country World Index posted gains, while the Robeco Global Consumer Trends Fund underperformed despite positive year-to-date returns.

Based on transaction prices, the fund's return was 1.23%. The portfolio underperformed versus global markets last month, mainly due to weak performance in the Emerging Middle Class and Healthy Aging themes, while Digital World slightly outperformed. Airbnb, part of the Digital Transformation of Consumption theme, recovered 8% after CEO Brian Chesky's positive outlook on new verticals and margin expansion. NVIDIA initially lost USD 279 bln in market value but ended the month up 2%. Meta Platforms rose 10%, benefiting from regulatory issues facing Alphabet and its investment in augmented reality glasses with EssilorLuxottica. The Emerging Middle Class theme struggled, with Nu Holdings down 9% as Brazil's central bank raised rates to 10.75%. Luxury goods firms reliant on China faced challenges, with Ferrari down 6%. Tencent, the portfolio's only direct exposure to China, gained over 16%, benefiting from improving consumer sentiment. In the Healthy Aging theme, Novo Nordisk's shares fell 22% over the last three months due to supply constraints and pricing pressure on its obesity drug, Wegovy, in the US.

From a macro perspective, we have reached the start of a potential series of interest rate cuts by central banks. The European Central Bank has already started cutting rates, and investors expect multiple rate cuts in the United States before year-end. Given the uncertain macro and geopolitical environment, a quality growth investment style seems well-suited for the current investment climate. Our balanced approach should provide protection on the downside while also providing enough structural growth to participate in the upside. We remain convinced in our belief that long-term investors should focus on high-quality businesses with valuable intangible assets, low capital intensity, high margins, and superior returns on capital. We continue to have a positive long-term outlook for our investments.