Robeco QI Global Multi-Factor Credits ZH EUR

The Bloomberg Barclays Global Aggregate Corporates Index posted a credit spread return of 68 bps in July as spreads tightened from 118 to 109 bps. Underlying government bond yields contributed neutrally, resulting in a total return of 67 bps (euro-hedged). Markets were again mainly driven by central banks, and not so much by economic data or corporate earnings. ECB president Draghi repeated his message that the ECB is willing to use all tools to reach its inflation target, including purchasing corporate bonds. The Fed delivered its first rate cut in 11 years, but Chairman Powell indicated it was a “mid-cycle adjustment” rather than a full cutting cycle. Global trade tensions remain a reason to cut rates further, and US President Trump subsequently announced a 10% tariff on an additional USD 300 billion of imports from China. Over the month, EUR bonds outperformed USD bonds; shorter-dated bonds outperformed longer-dated bonds; higher-rated bonds outperformed lower-rated bonds; emerging markets outperformed developed markets; financials outperformed non-financials; all on a risk-adjusted basis.

To preserve the value of the investments of Robeco Global Multi-Factor Credits IH EUR in Euro against the fluctuations of other currency positions in the portfolio, derivatives are used for currency hedging transactions.

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

ESG analysis is systematically incorporated in the highly disciplined investment process. This ensures that companies with higher ESG scores from RobecoSAM are more likely to be included in the portfolio, and vice versa. With these portfolio construction rules we aim for an ESG profile of the fund that is above that of the reference index. In addition, our credit analysts use external sources to identify additional ESG risks, e.g. corporate governance issues or companies that have major litigation or regulatory risks. If these ESG risks may result in a material financial impact, we will not invest in these companies.

Robeco QI Global Multi-Factor Credits aims to provide long-term capital growth by investing systematically in predominantly investment grade credits and offering exposure to a number of quantitative strategies in a diversified way. It uses a strategy focusing on bonds with a low level of expected risk (Low volatility); a strategy focusing on bonds with an attractive valuation (Value); and a strategy focusing on bonds of companies with a medium-term attractive performance trend (Momentum). The fund on average offers balanced exposure to these factors. A disciplined investment process is used for the portfolio's construction, starting with a global universe of all credit bonds, and including those bonds with at least a BB rating to capture the fallen angels and rising stars. The quantitative multi-factor ranking model ranks all bonds from the most attractive to least attractive. In the portfolio's construction, bonds from the top of the ranking will be bought, resulting in a balanced and diversified portfolio, reflecting bonds' liquidities and constraints on sectors and currencies, BBs and emerging markets. The Barclays Global Aggregate Corporates Index (hedged into EUR) is used as an index for the fund. The fund will strive to create a risk profile which is similar to this reference index, but with a high conviction approach that aims to generate higher returns, due its exposures to factors. The fund can have a significant tracking error versus the index.

The fund will strive to create a risk profile, which is similar to the reference index. The duration and currency exposure of the portfolio will be hedged to the reference index. The strategy can have significant tracking error versus the reference index. The ratio of the portfolio volatility with respect to the volatility of the reference index is restricted by predefined guidelines. These guidelines also restrict the leverage exposure of derivatives on a fund level and the currency exposure as described in the prospectus.