The fund retreated in December in a volatile market environment, where profit-taking affected several holdings. The weakest performance was seen in water analysis, where companies that had previously experienced a strong recovery faced increased selling pressure towards the end of the month.
It was also noted that companies in engineering and construction-related segments performed poorly, which the managers attribute to ongoing uncertainty surrounding U.S. politics and the financing of major projects.
A positive exception was Swedish company Bravida, which performed better in line with expectations of stabilization in the Nordic markets. At the same time, companies in industrial applications and water-related utilities helped to cushion the decline through relatively strong performance.
Market developments were characterized by conflicting signals. Hopes for interest rate cuts and continued strong corporate earnings were set against geopolitical tensions and questions about the long-term returns on extensive AI investments, particularly in the United States. Meanwhile, investments in water infrastructure continue globally, providing long-term support to the sector.
The managers maintain a disciplined fundamental strategy. The fund remains overweight in water analysis based on valuations, with a focus on infrastructure-related investments in water efficiency.
Finally, it is stated that exposure to utilities is selective and that U.S. water companies remain underweighted due to high valuations.
The largest holdings in the fund's portfolio at the end of the month were Agilent Technologies at 4.84 percent, followed by Xylem and Avantor with weights of 3.71 and 2.99 percent, respectively.
| Robeco Sustainable Water Equities D EUR, % | December, 2025 |
| Fund MoM, change in percent | -2.33 |
| Index MoM, change in percent | -0.38 |
| Fund full year, change in percent | -3.74 |
| Index full year, change in percent | 6.77 |
