Robeco: RobecoSAM Sustainable Water Equities up 2.10% in September - capital goods and chemicals most positive contributors

The RobecoSAM Sustainable Water Equities D EUR fund rose 2.10% in September, outperforming its benchmark index, which rose 1.00%. Since the beginning of the year, the fund has returned 13.98%, underperforming the index, which has risen 17.64%. This is according to a monthly report from the fund's managers Dieter Küffer and Jindapa Wanner Thavornsuk. The managers note that the US Federal Reserve started to cut interest rates in September, which is believed to support the economy. At the same time, the situation in the Middle East worsened, while China unveiled a major stimulus package. "There was again some flooding and storms around the world. Parts of the US and Asia were hit by hurricanes or typhoons. Parts of Italy and Austria were also hit by heavy flooding. This shows that more investment is needed in flood management and coastal protection," the managers write. During the month, the strongest contribution came from capital goods and chemicals, with the biggest contributors being Pentair, Valmet and Weir Group. "Pentair still seems to be benefiting from restructuring measures in the Industrial and Flow Technologies division. Valmet benefited after receiving its largest single order ever. Weir Group announced some smaller orders." The construction and materials cluster also contributed positively, with Haier Smart Home rising after the announcement of the stimulus package in China, while Api Group and Arcadis contributed negatively. Finally, the managers point out that the fund remains overweight in water analysis equipment, building materials and water treatment systems. Within building materials, the fund focuses on companies active in infrastructure and housing. Meanwhile, it is overweight in Veolia Environment and some US utilities, but still excludes Brazilian water utilities. At the end of the month, the fund's largest holdings were Avantor, Agilent Technologies and Veolia Environment, with weightings of 5.08%, 4.58% and 4.30% respectively. RobecoSAM Sustainable Water Equities D EUR, % September, 2024 Fund MM, % change 2,10 Index MM, change in percent 1,00 Fund this year, percentage change 13,98 Index this year, percentage change 17,64