RobecoSAM Global Green Bonds FH EUR

The Global Green Bond Index delivered a total return of 1.69% last month. The yield on 10-year German treasuries moved down 25 basis points to -0.46%. The US 10-year Treasury yield also dropped 25 bps to 1.22%. The credit spread (OAS) on the Global Green Bond Index widened 3 bps to 0.60%.The European investment grade corporate bond market continued to trade in a narrow spread range. The spread of the Covid delta variant led to weakness in other credit markets, while global government bonds rallied. The so-called reopening trades also underperformed, as investors worried about the recovery path in sectors such as airlines and leisure.The ECB now needs to forecast inflation at 2% well ahead of the forecast horizon before lifting rates, while the Fed indicated less appetite for inflation shoots, with the latter implying faster steps in monetary tightening at the expense of growth. Hence, the UST curve flattened strongly. For the ECB, the current inflation outlook is still quite some distance away from this threshold. Nonetheless, the ECB left the discussion regarding the size of monthly purchases under its PEPP program for the September meeting.

All currency risks are hedged.

The fund does not distribute a dividend.

The RobecoSAM Global Green Bonds strategy invests in bonds whose proceeds are used towards an environmental objective, referred to as green bonds. The eligibility of green bonds is based on an internally developed five-step framework. We assess if the issuer takes into account the ICMA Green Bond Principles, the Climate Bond Initiative and/or the EU Green Bond Standard. Then we identify and evaluate the allocation of the investment proceeds in line with the EU Taxonomy and EU’s six environmental objectives. We verify that the bond proceeds are allocated to projects that positively contribute to at least one of the six objectives, and do not significantly harm the other five: climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, waste prevention and recycling, pollution prevention and control, protection of healthy ecosystems. We require the bond issuers to report on the use of proceeds. In addition to the use-of-proceeds screening, we assess the wider sustainability strategy of the issuer. Finally, we require issuers to respect international norms related to conduct such as international labor rights, human rights and the UN Global Compact. In addition to the universe screening, our analysts integrate ESG factors in their fundamental analysis of companies and sovereigns.

RobecoSAM Global Green Bonds is an actively managed fund that invests in green bonds issued by governments, government-related agencies and corporates. The selection of these bonds is based on fundamental analysis. The fund's objective is to provide long term capital growth.The fund has sustainable investment as its objective within the meaning of Article 9 of the European Sustainable Finance Disclosure Regulation. The fund finances/ re-financing new and/or existing environmentally-friendly projects by investing in green bonds which are designed to support specific climate-related or environmental projects. The fund integrates ESG (i.e. Environmental, Social and corporate Governance) in the investment process, applies an exclusion list basis controversial behavior, products (including controversial weapons, tobacco, palm oil and fossil fuel) while avoiding investment in thermal coal, weapons, military contracting and companies that severely violate labor conditions, next to engagement. The fund invests at least two-thirds of its total assets in global green bonds with a minimal rating of "BBB-" or equivalent by at least one of the recognized rating agencies. Green bonds selection is based on an internally developed framework for which more information can be obtained via the website www.robeco.com/si. The Benchmark is aligned with the sustainable investment objective of the fund by applying clearly defined rules for classifying green bonds. The majority of bonds selected will be components of the Benchmark, but bonds outside the Benchmark may be selected too. The fund can deviate substantially from the weightings of the Benchmark. The fund aims to outperform the Benchmark over the long run, whilst still controlling relative risk through the applications of limits (on currencies and issuers) to the extent of deviation from the Benchmark. This will consequently limit the deviation of the performance relative to the Benchmark. the Benchmark is aligned with the sustainable investment objective of the fund by applying clearly defined rules for classifying green bonds.

Risk management is fully embedded in the investment process so as to ensure that the fund's positions remain within set limits at all times.