Robeco Global Total Return Bond Fund IH CHF

While US Treasury yields moved sideways, bond yields in the Eurozone continued their upward trend in May. With inflation pressures persisting, the ECB has indicated rates will be raised in July. The yield on the 2-year German Schatz reached 0.50% at the end of May, the highest level since 2011. Front end yields in the US continued their rise in the early days of the month, but the move calmed after the May FOMC meeting. At and after this meeting the tone of Fed officials remained hawkish, but there was some pushback against pricing in ever larger steps. Within the Eurozone, country spreads were relatively stable, with some slight underperformance in non-core markets, especially in long-dated BTPs. The ECB has indicated that it intends to introduce an anti-fragmentation tool to alleviate spread widening concerns. So far, there is little clarity around this tool and a sense of urgency seems to be lacking.

Currency risks are hedged, however active currency positions of the fund are part of the investment strategy and will not be hedged.

All income earned is accumulated and not distributed as dividend. Therefore the total return is reflected in the share price development.

The fund incorporates sustainability in the investment process via exclusions, negative screening, ESG integration, limits on investments in companies and countries based on ESG performance as well as engagement. For government and government-related bonds, the fund complies with Robeco’s exclusion policy for countries, excludes the 15% worst ranked countries following the World Governance Indicator 'Control of Corruption', and ensures investments have a minimum weighted average score of 6 following Robeco's proprietary Country Sustainability Ranking. The Country Sustainability Ranking scores countries on a scale from 1 (worst) to 10 (best) based on 40 environmental, social, and governance indicators. For corporate bonds, the fund does not invest in credit issuers that are in breach of international norms or where activities have been deemed detrimental to society following Robeco's exclusion policy. ESG factors are integrated in the bottom-up security analysis to assess the impact on the issuer's fundamental credit quality. In the credit selection the fund limits exposure to issuers with an elevated sustainability risk profile. Lastly, where issuers are flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to engagement.

Robeco Global Total Return Bond Fund invests in government and corporate bonds, and has the flexibility to invest in emerging debt, with the aim of capturing opportunities in fixed income classes around the globe. The investment process and bond selection is fundamentally driven, based on in-depth research. By adopting a contrarian approach to markets, with a focus on value, while utilizing tools to measure risk aversion, euphoria and value, we believe we can exploit market inefficiencies over the cycle. The fund aims to deliver an attractive total return, also on a risk-adjusted basis. The fund promotes E&S (i.e. Environmental and Social) characteristics within the meaning of Article 8 of the European Sustainable Finance Disclosure Regulation, integrates sustainability risks in the investment process and applies Robeco’s Good Governance policy. The fund applies sustainability indicators, including but not limited to, normative, activity-based and region-based exclusions. The duration of the fund will be managed actively and can move between 0 and 10 years. Active currency positions are part of the investment strategy. The backbone of the investment process is consistent and in-depth fundamental research on both companies and countries.

The fund aims to deliver an attractive total return, also on a risk-adjusted basis. The fund targets an ex-ante total return volatility within the range of 2 to 6% and can adjust the duration of the portfolio between 0 and 10 years. The leverage exposure of derivatives on a fund level is restricted as described in the prospectus.