robecosam smart materials - harrington cooper · robecosam smart materials •unique investment...

RobecoSAM Smart Materials Q1 2014, C-Shares, net, EUR

Overview

• Highlights

• Portfolio performance

• Performance attribution

• Portfolio characteristics

• Current positioning

• Portfolio exposures

• Portfolio top 10 holdings

• Portfolio data

• Appendix

2

Resource efficiency solution

• Finite supplies of natural resources create demand for efficiency gains and substitutes

• Investments in innovative technologies & products with competitive advantages and high potential

• Diversification benefits for traditional resource allocations

Focused global high-conviction portfolio for long-term outperformance

• Secular growth trends translated into investment opportunities

• Disciplined, bottom-up driven investment process to identify companies with attractive alpha potential

RobecoSAM Smart Materials

• Unique investment approach with an established track record managed by a

specialized investment team

• Consistent outperformance and lower risk vs. traditional resource investment solutions

Highlights

3

Investment universe

4

ClusterEligible no.

of Stocks

% of

Marketcap in

STR Universe

Beta vs.

MSCI World

(STR)

Investment Areas

Basic Materials 43 13% 1.20• Strategic metals (e.g. rare earths, lithium, PGMs)

• Sustainable metals & mining companies

Innovative

Materials158 38% 1.07

• Light-weight materials (e.g. carbon fibers, ceramics)

• Energy storage materials (e.g. batteries ultracapacitors)

• E-paper & novel displas (e.g. OLED)

• Bio-based materials (bio-plastics, industrial biotech)

• Specialty metals (e.g. titanium metal alloys)

• Efficient building materials

Process

Technologies142 43% 1.11

• High-power industrial lasers

• Automation & process control (e.g. sensors, metrology, motion

control, …)

• Analytic instruments (e.g. software, inspection & testing, …)

• Mining & industrial equipment

• Industrial gases

Recycling and

Disposal32 6% 0.95

• Waste Management and Recycling

• Waste and Recycling Equipment

• Waste to Energy

Total 375 100% 1.10

Ex-ante Beta; Barra Aegis Global Equity model (31.12.2013)

Definition of the RobecoSAM Strategic Theme Reference (STR): market cap-adjusted reflection of the universe

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

09.06 07.07 05.08 03.09 01.10 11.10 09.11 07.12 05.13 03.14

RobecoSAM Smart Materials Fund

MSCI World TRN

Performance versus MSCI World - since inception

Past performance is no indication of future results. The values and returns indicated here do not consider the fees and costs which may be charged when subscribing, redeeming and/or switching units.

Performance & Risk Characteristics

Portfolio performance

5

RobecoSAM Smart Materials Fund (31.03.2014, C-Shares, net, EUR)

Absolute Risk (since inception) 19.96%

Absolute Risk MSCI World TRN (since inception) 13.67%

Tracking Error (since inception) 10.59%

Information Ratio 0.09

Sharpe Ratio (since inception) 0.15

Beta versus MSCI World TRN 1.27

Jensen's Alpha 0.35%

YTDlast

month

last 3

months

last 6

months

last 12

months

last 2

years

p.a.

last 3

years

p.a.

last 5

years

p.a.

since

inception

p.a. *

RobecoSAM Smart Materials Fund 0.40% 0.51% 0.40% 6.51% 10.46% 7.12% 3.47% 19.93% 4.67%

MSCI World TRN 1.24% 0.36% 1.24% 7.41% 10.93% 13.42% 11.29% 17.39% 3.76%

Excess Return -0.84% 0.16% -0.84% -0.90% -0.47% -6.30% -7.82% 2.54% 0.91%

*02.10.2006

-0.68%

-0.16%

-0.05%

-0.47%

-1% 0%

Total active

Currency

Allocation

Selection

-0.15%

-0.28%

-0.25%

0.38%

-1% 0% 1%

Total active

Currency

Allocation

Selection

0.77%

1.97%

-2.14%

0.94%

-3% -2% -1% 0% 1% 2% 3%

Total active

Currency

Allocation

Selection

Portfolio attribution - Overview

Portfolio vs. MSCI World (1Y rolling)

6

Portfolio vs. MSCI World (Q1) Portfolio vs. STR (Q1)

Source: Bloomberg (31.03.2014)

Portfolio vs. MSCI World (Q1)

Portfolio attribution - Sectors

Portfolio vs. STR (Q1)

7 Source: Bloomberg (31.03.2014)

Sector attribution Active weight

Consumer Discretionary 0.55% -11.64% 0.13% 0.43% -0.06% 0.50%

Consumer Staples 0.00% -9.76% 0.00% 0.08% -0.03% 0.05%

Energy 0.00% -9.34% 0.00% -0.09% 0.02% -0.07%

Financials 0.00% -20.93% 0.00% 0.14% -0.05% 0.09%

Health Care 1.69% -10.00% -0.14% -0.43% -0.02% -0.59%

Industrials 22.51% 11.14% -0.33% -0.20% 0.00% -0.53%

Information Technology 22.81% 10.59% -0.39% 0.06% -0.13% -0.46%

Materials 48.47% 42.73% 0.27% 0.18% 0.15% 0.59%

Telecommunication Services 0.00% -3.59% 0.00% 0.08% -0.02% 0.07%

Utilities 0.00% -3.15% 0.00% -0.22% -0.01% -0.22%

Cash 3.97% 3.97% 0.00% -0.07% -0.01% -0.09%

others 0.00% -0.03% 0.00% 0.00% 0.00% -0.01%

Total -0.47% -0.05% -0.16% -0.68%

Portfolio weight Selection Allocation Currency Total active


Consumer Discretionary 0.55% -0.49% 0.17% 0.06% -0.02% 0.21%

Consumer Staples 0.00% -0.72% 0.00% 0.04% 0.00% 0.04%

Energy 0.00% -0.27% 0.00% -0.04% 0.00% -0.04%

Financials 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Health Care 1.69% -2.47% -0.10% -0.05% 0.00% -0.15%

Industrials 22.51% -8.23% -0.35% 0.04% -0.03% -0.35%

Information Technology 22.81% 3.28% 0.23% -0.04% -0.26% -0.07%

Materials 48.48% 6.61% 0.43% 0.06% 0.06% 0.55%

Telecommunication Services 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Utilities 0.00% -1.28% 0.00% -0.20% 0.00% -0.20%

Cash 3.97% 3.97% 0.00% -0.08% -0.02% -0.09%

others 0.00% -0.40% 0.00% -0.04% -0.01% -0.05%

Total 0.38% -0.25% -0.28% -0.15%

Total activeAllocation CurrencySelectionPortfolio weight

Portfolio attribution - Sectors

Portfolio vs. MSCI World (1Y rolling)

8 Source: Bloomberg (31.03.2014)


Consumer Discretionary 0.63% -11.38% 0.26% -0.48% 0.90% 0.67%

Consumer Staples 0.00% -10.27% 0.00% 1.26% 0.62% 1.89%

Energy 0.00% -9.63% 0.00% 0.50% 0.70% 1.19%

Financials 0.00% -20.93% 0.00% -0.22% 1.81% 1.59%

Health Care 1.58% -9.68% -0.19% -0.50% 0.59% -0.10%

Industrials 26.29% 15.11% 1.68% 0.51% -0.94% 1.24%

Information Technology 23.14% 11.36% -2.65% 0.68% -0.49% -2.46%

Materials 43.10% 37.31% 1.57% -3.14% -1.55% -3.13%

Telecommunication Services 0.00% -3.65% 0.00% -0.05% 0.23% 0.17%

Utilities 0.00% -3.26% 0.00% 0.16% 0.21% 0.37%

Cash 4.86% 4.86% 0.00% -0.91% -0.07% -0.98%

others 0.40% 0.15% 0.28% 0.05% -0.02% 0.31%

Total 0.94% -2.14% 1.97% 0.77%

Portfolio weight Selection Allocation Currency Total active

Performance attribution - Holdings

Top 5 contributors and detractors vs. MSCI World (Q1)

Top 5 contributors and detractors vs. STR (Q1)

9

Name Sector Country Portfolio Index Total return Contribution

5N PLUS INC Information Technology CANADA 1.15% 54.48% 0.49%

QUIMICA Y MINERA CHIL-SP ADR Materials CHILE 2.03% 22.63% 0.38%

CORNING INC Information Technology UNITED STATES 2.19% 0.09% 17.43% 0.35%

MORGAN ADVANCED MATERIALS PL Industrials BRITAIN 1.90% 13.31% 0.26%

AIR PRODUCTS & CHEMICALS INC Materials UNITED STATES 3.15% 0.08% 7.18% 0.22%

POLYPORE INTERNATIONAL INC Industrials UNITED STATES 2.31% -12.07% -0.39%

OXFORD INSTRUMENTS PLC Information Technology BRITAIN 1.09% -27.65% -0.35%

IPG PHOTONICS CORP Information Technology UNITED STATES 4.13% -8.43% -0.34%

LG CHEM LTD Materials SOUTH KOREA 1.67% -15.93% -0.32%

SPECTRIS PLC Information Technology BRITAIN 1.89% -8.90% -0.18%

Average weight


5N PLUS INC Information Technology CANADA 1.15% 0.00% 54.48% 0.49%

QUIMICA Y MINERA CHIL-SP ADR Materials CHILE 2.03% 0.22% 22.62% 0.33%


MORGAN ADVANCED MATERIALS PL Industrials BRITAIN 1.90% 0.10% 13.31% 0.24%

3D SYSTEMS CORP Information Technology UNITED STATES 0.49% 0.22%

POLYPORE INTERNATIONAL INC Industrials UNITED STATES 2.31% 0.10% -12.08% -0.38%

IPG PHOTONICS CORP Information Technology UNITED STATES 4.13% 0.23% -8.43% -0.32%

OXFORD INSTRUMENTS PLC Information Technology BRITAIN 1.09% 0.09% -27.65% -0.32%

LG CHEM LTD Materials SOUTH KOREA 1.67% 0.55% -16.40% -0.23%

SPECTRIS PLC Information Technology BRITAIN 1.89% 0.30% -8.90% -0.15%

Average weight


Performance attribution - Holdings

Top 5 contributors and detractors vs. MSCI World (1Y rolling)

10


HEXCEL CORP Industrials UNITED STATES 5.08% 39.83% 1.88%

COGNEX CORP Information Technology UNITED STATES 1.67% 40.06% 1.07%

FEI COMPANY Information Technology UNITED STATES 2.13% 43.95% 0.97%


AIR PRODUCTS & CHEMICALS INC Materials UNITED STATES 2.92% 0.07% 30.80% 0.82%

DUKSAN HI-METAL CO LTD Information Technology SOUTH KOREA 2.38% -34.78% -1.00%

E INK HOLDINGS INC Information Technology TAIWAN 1.40% -29.79% -0.75%

SFA ENGINEERING CORP Information Technology SOUTH KOREA 1.71% -27.03% -0.63%

ASAHI HOLDINGS INC Materials JAPAN 1.72% -26.87% -0.58%

POLYPORE INTERNATIONAL INC Industrials UNITED STATES 1.93% -20.67% -0.55%

Average weight


The data stated above may differ from data on the monthly factsheets due to different sources.

Key Data

Portfolio characteristics - Data

11


Inception Date October 1, 2006

Total Fund Volume in EUR (in m) 114

Number of Holdings 60

RobecoSAM Smart Materials Fund Strategic Theme Reference MSCI World

Average Market Cap USD (m) 20'720 17'075 91'211

Price Earnings Ratio forward (E) 16.81 17.77 14.90

Dividend Yield 1year 1.60 1.75 2.48

Long-Term Earnings Growth (E) 10.36% 14.70% 11.58%

PEG Ratio 1.62x 1.21x 1.29x

Ex-ante Beta vs. MSCI 1.05 1.09 1.00

Ex-ante Volatility 14.83% 14.95% 13.11%

0%

5%

10%

15%

20%

25%

30%

35%

Q2 2013 Q3 2013 Q4 2013 Q1 2014

Automation & process control

Analytic instruments

Industrial gases

0%

1%

2%

3%

4%

5%

6%

7%

8%

Q2 2013 Q3 2013 Q4 2013 Q1 2014

Sust. basic resource companies Strategic metals

0%

10%

20%

30%

40%

50%

60%

Q2 2013 Q3 2013 Q4 2013 Q1 2014

Hi-tech materials Bio-based materials

Efficient building materials E-paper & novel displays

Speciality metals Leight-weight metals

Energy storage materials Functional materials

0%

2%

4%

6%

8%

10%

12%

14%

Q2 2013 Q3 2013 Q4 2013 Q1 2014

Recycling Waste-to-energy Waste management

Portfolio characteristics - Cluster weights

12

Basic resources Innovative materials

Process technologies Recycling & disposal


Exposure by Clusters (vs. STR, excluding cash)

Exposure by Regions (vs. STR and MSCI World, Company Domicile, excluding cash)

Exposure by Market Capitalization (vs. STR and MSCI World)


Portfolio exposures

13

RobecoSAM Smart Materials STR (Strategic Theme Reference) MSCI World Index


54.7%

7.9%

29.2%

8.2%

38.0%

12.5%

41.6%

6.2%

0% 20% 40% 60%

Innovativematerials

Basic resources

Processtechnologies

Recycling &disposal

53.7%

30.1%

16.2%

45.4%

33.9%

20.7%

58.9%

27.8%

13.1%

0% 20% 40% 60%

Americas

Europe

Pacific Rim

42.1%

33.3%

24.5%

48.0%

42.9%

9.1%

88.7%

11.7%

0.0%

0% 20% 40% 60% 80% 100%

Large Caps (>USD 10bn)

Mid Caps (USD2-10bn)

Small Caps (<USD 2bn)

Exposure by Countries (vs. STR and MSCI World, Company Domicile, excluding cash)

Exposure by Sectors (vs. STR and MSCI World, Global Industry Classification Standard, excluding cash)

Exposure by Currencies (vs. STR and MSCI World, including cash)

Portfolio exposures

14

RobecoSAM Smart Materials STR (Strategic Theme Reference) MSCI World Index



49.2%

18.9%

6.7%

6.5%

5.1%

4.0%

42.3%

6.7%

5.2%

3.0%

14.6%

4.9%

54.8%

8.7%

4.3%

0.0%

8.1%

3.9%

0.0% 20.0% 40.0% 60.0%

USA

Great Britain

France

South Korea

Japan

Germany

51.9%

24.6%

21.4%

1.6%

42.2%

19.4%

30.8%

4.1%

5.7%

12.2%

11.3%

11.7%

0% 10% 20% 30% 40% 50% 60%

Materials

InformationTechnology

Industrials

Health Care

49.8%

18.2%

13.8%

6.3%

5.0%

3.4%

45.7%

7.6%

15.7%

3.0%

14.6%

1.3%

54.8%

8.7%

13.0%

0.0%

8.1%

0.0%

0% 10% 20% 30% 40% 50% 60%

USD

GBP

EUR

KRW

JPY

TWD

* Company Domicile


Portfolio top 10 holdings

15


Company Country * Cluster Current Weight

IPG Photonics Corp USA Process Technologies 4.51%

Hexcel Corp USA Innovative Materials 4.15%

3M Co USA Innovative Materials 3.62%

AZ Electronic Materials SA Great Britain Innovative Materials 3.41%

Air Products & Chemicals Inc USA Process Technologies 3.02%

Croda International PLC Great Britain Innovative Materials 2.83%

Praxair Inc USA Process Technologies 2.79%

Linde AG Germany Process Technologies 2.48%

FMC Corp USA Innovative Materials 2.43%

Sociedad Quimica y Minera de C Pref ADR Chile Innovative Materials 2.42%

Total 31.66%

16

Appendix

Investment case – how to deal with scarcity?

• Buy solutions to resource scarcity

• Improved quality features

• Exposure to secular growth

• Anticipate future demand

• Gain market share

• Buy “bottleneck” resources

• Limited improvement potential

• Exposure to cyclical growth

• React to historical demand

• Lose market share

By anticipating changing resource consumption, the Smart Materials strategy offers superior investment opportunities at a lower risk

17

Smart Materials Traditional resources

Past performance is no indication of future results. The values and returns indicated here do not consider the fees and costs which may be charged when subscribing, redeeming and/or switching units.

Portfolio performance

18


-60%

-40%

-20%

0%

20%

40%

60%

YTD 2013 2012 2011 2010 2009 2008 2007 2006* sinceinception

RobecoSAM Smart Materials Fund MSCI World TRN

YTD 2013 2012 2011 2010 2009 2008 2007 2006*since

inception

RobecoSAM Smart Materials Fund 0.40% 18.96% 7.47% -8.88% 38.79% 44.83% -51.14% 13.17% 8.34% 40.83%

MSCI World TRN 1.24% 21.20% 14.05% -2.38% 19.53% 25.94% -37.64% -1.66% 4.57% 31.86%

Excess Return -0.84% -2.24% -6.58% -6.50% 19.26% 18.89% -13.50% 14.83% 3.77% 8.96%

*02.10.06-31.12.06

Universe definition materials (1/2)

Basic materials Mining companies with a sustainability score of 70+ (as defined by RobecoSAM Corporate Sustainability Assessment) and/or mining companies with a focus on ‘strategic metals’ (i.e., metals that are vital to modern technology and industry such as lithium, rare earth elements …) Innovative materials Innovative materials that help to improve the performance specifications of a product, to pioneer new applications, and/or to prolong product life • Bio-based materials: materials & chemicals derived from renewable biological resources (e.g., cellulose

fibers, bio-plastics, polylactic acid, …). • Efficient building materials: materials used in residential and commercial construction with a focus on

energy efficiency. • Energy storage materials: materials pioneering new energy storage technologies such as batteries

(e.g., anode and cathode materials, separators, electrolytes, …). • E-paper & novel displays: materials pioneering the development of new displays (e.g., electronic ink

used in smartphones and e-books, …). • Functional materials: broadly defined materials that display useful physical properties (e.g., thermal,

electrical, optical, magnetic, dielectric). • Lightweight materials: materials that are characterized by their exceptionally light weight (e.g., carbon

fibers). • Specialty metals: metals characterized by specific attributes such as anti-corrosion, weight-to-strength

ratio, … (e.g., titanium alloys, nickel alloys, …).

19

Universe definition materials (2/2)

Process technologies:

Technologies that deliver efficiency gains in the extraction, processing, and end usage of resources/materials.

• Analytical instruments: ranging from laboratory instruments (e.g., mass spectrometers) to process analytics and product simulation & inspection.

• Automation & process control: products & software that automatize production processes with the aim of making them more efficient, less polluting and safer.

• Industrial & mining equipment: encompasses various types of industrial and mining equipment with a particular focus on delivering efficiency gains with regard to materials usage and/or energy efficiency.

• Industrial gases: includes atmospheric and specialty process gases used to improve the efficiency of various processes in a wide range of applications.

Recycling & disposal

Companies that are engaged in the management of waste and achieve improvements in environmental efficiency through resource recovery practices.

• Waste management: companies engaged in the collection, transport, and management of various types of waste (e.g., municipal waste, industrial waste, hazardous waste, …).

• Recycling: companies engaged in the recycling of various types of materials (e.g., paper, glass, electronics, …).

• Waste to energy: companies engaged in the construction & engineering or operation of waste-to-energy facilities.

20

Disclaimer Important legal information:

The details given on these pages do not constitute an offer. They are given for information purposes only. No liability is assumed for the correctness and accuracy of the details given. The value of the units and the return they generate can go down as well as up. They are affected by market volatility and by fluctuations in exchange rates. Past performance is no indication of future results. The values and returns indicated here do not consider the fees and costs which may be charged when subscribing, redeeming and/or switching units. The breakdown into sectors, countries and currencies as well as possibly indicated benchmarks is liable to change at any time in line with the investment policy determined in the Prospectus. The translation into action of fund recommendations contained in these documents shall always lie in the sole responsibility of the intermediary or investor. Investments should only be made after a thorough reading of the current Prospectus and/or the Fund Regulations, the current Key Investor Information Document (KIID) and articles of association, the latest annual and semi-annual reports and after advice has been obtained from an independent finance and tax specialist. The documents mentioned can be obtained free of charge by calling the local RobecoSAM office, on www.robecosam.com or from any address indicated below. The range of RobecoSAM investment funds with domicile in Luxembourg (SICAV) is registered for public offering in Luxembourg, Switzerland, Germany, Austria, France, Holland, Sweden, Spain, Belgium, Ireland, United Kingdom, Singapore* and Italy. However, due to the different registration proceedings in the various countries, no guarantee can be given that each fund or share category is or will be registered in every jurisdiction and at the same time. For an up to date registration list, please refer to www.robecosam.com. Please note that in any jurisdiction where a fund or share category is not registered for public offering, they may, subject to the applicable local regulation, only be sold in the course of private placement or institutional investments. Particularly, the RobecoSAM funds are not registered and, therefore, may not be offered for sale or be sold in the United States of America and their dependencies. In a case of private placement this pages are destined exclusively for internal use by the intermediary appointed by RobecoSAM and/or the institutional investor and shall not be passed over to third parties. Particularly, this document shall under no circumstances be used as material for public offering or any other kind of promoting to the public of the RobecoSAM funds or their share categories. Switzerland: Representative is Swiss & Global Asset Management Ltd., Hardstrasse 201, Postfach, CH-8037 Zurich. Paying Agent: Bank Julius Bär & Co. AG, Bahnhofstrasse 36, Postfach, CH-8010 Zurich. Germany: Information Agent is Swiss & Global Asset Management Kapital AG, Taunusanlage 15, D-60325 Frankfurt am Main. Paying Agent is DekaBank, Deutsche Girozentrale, Hahnstrasse 55, D-60528 Frankfurt am Main. Austria: Paying Agent is Erste Bank der österreichischen Sparkassen AG, Graben 21, A-1010 Vienna. Spain: RobecoSAM investment funds are registered in the Registry of Foreign Collective Investment Institutions Commercialized in Spain of the CNMV: Julius Baer Multipartner (No. 421). For a list of registered distributors in Spain, please refer to www.cnmv.es. Copyright © 2014 RobecoSAM - all rights reserved.

*restricted recognition for institutional investors in Singapore

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robecosam smart materials - harrington cooper · robecosam smart materials •unique investment...

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