The ever-growing fashion industry is presenting a very attractive investment opportunity in a sector that most of us can relate to. Growth in the industry is driven by the combination of rising disposable incomes and desire for self-expression globally, be it by the emerging middleclass consumers or wealthy luxury spenders. At the same time, the industry is facing serious sustainability concerns that urgently need to be addressed. On average, garment workers are paid 45% below local living wages, and less than 1% of garments are recycled. It is critical that sustainable solutions are implemented to transform the sector’s operations from a linear, take-make-waste model to a circular one, and important social issues like garment workers’ rights and wages are addressed.
Robeco’s new Fashion Engagement Equities fund sees these challenges as value-generating opportunities. It aims to capture financial returns and drive positive change in the industry through a disciplined, long-term investment approach based on thoughtful engagement. In this session, Portfolio Manager Dora Buckulcikova shares the fund’s philosophy, process and lessons learnt from early engagements with investee companies.
