Robeco High Yield Bonds FH USD

Sander Bus is CIO and Portfolio Manager High Yield Bonds in the Credit team. He has been dedicated to High Yield at Robeco since 1998. Previously, Sander worked for two years as a Fixed Income Analyst at Rabobank where he started his career in the industry in 1996. He holds a Master's in Financial Economics from Erasmus University Rotterdam and he is a CFA® charterholder. Roeland Moraal is Portfolio Manager High Yield in the Credit team. Before assuming this role, he was Portfolio Manager in the Robeco Duration team and worked as an Analyst with the Institute for Research and Investment Services. Roeland started his career in the industry in 1997. He holds a Master's in Applied Mathematics from the University of Twente and a Master’s in Law from Erasmus University Rotterdam. Christiaan Lever is Portfolio Manager High Yield and Emerging Credits in the Credit team. Before assuming this role in 2016, he was Financial Risk Manager at Robeco, focusing on market risk, counterparty risk and liquidity risk within fixed Income markets. Christiaan has been active in the industry since 2010. He holds a Master's in Quantitative Finance and in Econometrics from Erasmus University Rotterdam. Daniel de Koning is Portfolio Manager High Yield in the Credit team. Prior to joining Robeco in 2020, he was Portfolio Manager High Yield at NN Investment Partners. Daniel started his career in 2011 at APG Asset Management, where he held roles of Credit Analyst and Portfolio Manager High Yield. He holds a Master’s in Business Economics from the University of Amsterdam and he is a CFA® and CAIA® charterholder. The Robeco High Yield fund is managed within Robeco’s credit team, which consists of nine portfolio managers and twenty-three credit analysts. The portfolio managers are responsible for the construction and management of the credit portfolios, whereas the analysts cover the team’s fundamental research. Our analysts have long term experience in their respective sectors which they cover globally. Each analyst covers both investment grade and high yield, providing them an information advantage and benefiting from inefficiencies that traditionally exist between the two segmented markets. Furthermore, the credit team is supported by three dedicated quantitative researchers and four fixed income traders. On average, the members of the credit team have an experience in the asset management industry of seventeen years, of which eight years with Robeco.

The fund is established in Luxembourg and is subject to the Luxembourg tax laws and regulations. The fund is not liable to pay any corporation, income, dividend or capital gains tax in Luxembourg. The fund is subject to an annual subscription tax ('tax d'abonnement') in Luxembourg, which amounts to 0.05% of the net asset value of the fund. This tax is included in the net asset value of the fund. The fund can in principle use the Luxembourg treaty network to partially recover any withholding tax on its income.

The fiscal consequences of investing in this fund depend on the investor's personal situation. For private investors in the Netherlands real interest and dividend income or capital gains received on their investments are not relevant for tax purposes. Each year investors pay income tax on the value of their net assets as at 1 January if and inasmuch as such net assets exceed the investor’s tax-free allowance. Any amount invested in the fund forms part of the investor's net assets. Private investors who are resident outside the Netherlands will not be taxed in the Netherlands on their investments in the fund. However, such investors may be taxed in their country of residence on any income from an investment in this fund based on the applicable national fiscal laws. Other fiscal rules apply to legal entities or professional investors. We advise investors to consult their financial or tax adviser about the tax consequences of an investment in this fund in their specific circumstances before deciding to invest in the fund.

The fund incorporates sustainability in the investment process via exclusions, ESG integration, a minimum allocation to ESG-labeled bonds, and engagement. 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. Financially material 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. Furthermore, the fund invests at least 2% in green, social, sustainable, and/or sustainability-linked bonds. Lastly, where issuers are flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to engagement.For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on Bloomberg US Corporate High Yield + Pan Euro HY ex Financials 2.5% Issuer Cap.

During the month of February, spreads in the US high yield market widened by 13 bps to 290 bps, while yields contracted further by 9 bps, reaching 6.82%. Amid unpredictable tariff announcements from the Trump administration, investor unease has intensified over a growing list of negative economic data, contributing to oil prices hitting their lowest point in two months. Political headlines appear to be driving this pullback in sentiment, raising concerns about potential impacts on US growth. Growth in Europe remains an issue to be addressed by policymakers, and higher input costs registered in the month will complicate the picture. Inflation was also on the rise in the UK, where it reached a 10-month high of 3 percent in January, reducing expectations on further rate cuts by the BoE. New issues in the US high yield market in February amounted to USD 19 bln, whereas default and distressed exchange activity involved only 1.6 bln worth of bonds.

Based on transaction prices, the fund's return was 0.87%. In February, the high yield bond index posted a total return of 0.64%. The slightly negative credit returns over the month were more than compensated by the move in the underlying rate market, as the 10 year US Treasury ended the month around 30 bps lower at 4.22%. The portfolio outperformed by 17 bps over the month. Both beta positioning (+7 bps) and issuer selection (+10 bps) contributed positively to performance. The higher rating segments of the market delivered the weakest risk-adjusted returns in both of the currency denominations, which did not benefit our up-in quality allocation. Our over-allocation to euro-denominated paper was the main driver of the positive result, as it strongly outperformed dollar-denominated bonds. Our overweight risk in the capital goods (+4 bps) and off-benchmark banking (+3 bps) sectors contributed to performance, whereas underweight in consumer non-cyclical (-4 bps) detracted. Not owning the pharma company Bausch detracted 5 bps, as the company posted positive numbers. However, uncertainty on the potential sale of B+L and on the loss of exclusivity on Xifaxan remain near-term risks.

Global high yield spreads remain historically tight due to strong demand and elevated yields, as investors prioritize higher returns over concerns about valuations and macroeconomic uncertainties. The US economy has shown resilience despite monetary tightening, supported by fiscal stimulus, pent-up demand, and longer debt maturities. Further rate cuts are expected as labor markets cool, contributing to a stable outlook for markets. Europe faces challenges exacerbated by high energy costs, weak investment, and sluggish growth. However, fiscal easing and Chinese stimulus may offer support. Emerging markets are on stronger footing with improved credit profiles and lower leverage. HY spreads are near historical lows, leaving limited protection against shocks such as trade disruptions, inflation and geopolitical instability. Cross-currency opportunities, especially in EUR credit, remain appealing, and selective M&A activity may offer entry points if issuers avoid excessive leverage. Despite valuation concerns, HY markets benefit from strong technical support and a solid corporate backdrop, requiring a flexible, selective, bottom-up approach to identify opportunities.