Robeco QI Global Multi-Factor High Yield IH GBP

The Bloomberg Barclays Global High Yield Corporates ex-Financials Index posted a credit spread return of -94 bps in January as spreads widened from 356 bps to 406 bps. Underlying government bond yields dropped strongly and brought the total return to -10 bps (euro-hedged). New records continued to be set in global equity markets amid optimism on trade, politics and central banks. Recent macro data in the US and Europe has been positive, resulting in optimism about the outlook. The coronavirus outbreak in China reverberated in global markets and pushed global yields down. While it is too early to gauge its overall impact, it is already clear that the virus will alter the near-term path of the global economy. However, the reaction on the equity and corporate bond markets remains muted. GBP and EUR bonds outperformed, while USD and EM credits lagged; the transportation, consumer cyclical and consumer non-cyclical sectors outperformed, while energy and electric utility underperformed; the longest-dated bonds outperformed shorter bonds, and CCCs outperformed BBs and Bs, all on a risk-adjusted basis.

All currency risks are hedged.

The fund fund make use of derivatives for hedging purposes as well as for investment purposes.

This share class of the fund does not distribute dividend.

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 High Yield aims to provide long-term capital growth by investing systematically in high yield bonds and offering exposure to a number of proven factors in a diversified way. It selects bonds with a low level of expected risk (Low Risk); an attractive valuation (Value); a medium-term attractive performance trend (Momentum); and a small market value of debt (Size). 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 bonds with a rating of BB+ or equivalent or lower. 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, currencies-denominations, and subordinations. Bloomberg Barclays Global High Yield Corporates ex. Financials is used as a benchmark for the fund. The fund will strive to create a risk profile which is similar to this 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.

Risk management is fully embedded in the investment process to ensure that positions always meet predefined guidelines.