Robeco Global SDG Credits FH GBP

Matthew Jackson is Portfolio Manager Global Investment Grade in the Credit team. He joined Robeco in 2024 from Western Asset Management in London where he started his career in the industry in 2003 and consequently held roles of Risk Analyst, Portfolio Analyst, Research Analyst and Portfolio Manager of numerous dedicated credit funds and mandates. He holds a Bachelor’s in Economics (Hons) from the University of Sheffield. Daniel Ender is Portfolio Manager Investment Grade in the Credit team. Previously, he was a Credit Analyst at Actiam. Daniel started his career in the industry in 2018 at ABN AMRO. He has a Master’s in Financial Economics from Erasmus University Rotterdam and a Bachelor’s in Political Science and Economics from the University of Connecticut. Daniel also is CFA® charterholder. Evert Giesen is Portfolio Manager Investment Grade in the Credit team. Previously, he was an Analyst, responsible for covering the Automotive sector within the Credit team. Prior to joining Robeco in 2001, Evert worked at AEGON Asset Management for four years as a Fixed Income Portfolio Manager. He has been active in the industry since 1997 and holds a Master's in Econometrics from Tilburg University.

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.

Sustainability is incorporated in the investment process by the means of a target universe, exclusions, ESG integration, and a minimum allocation to ESG-labeled bonds. The fund solely invests in credits issued by companies with a positive or neutral impact on the SDGs. The impact of issuers on the SDGs is determined by applying Robeco's internally developed three-step SDG Framework. The outcome is a quantified contribution expressed as an SDG score, considering both the contribution to the SDGs (positive, neutral or negative) and the extent of this contribution (high, medium or low). In addition, 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 of financially material ESG risk on the issuer's fundamental credit quality. Furthermore, the fund invests at least 10% in green, social, sustainable, and/or sustainability-linked bonds. Lastly, where a credit issuer is flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to exclusion.For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on Bloomberg Global Aggregate Corporates Index.

March was turbulent for credit markets, as trade tensions escalated and economic data weakened. Uncertainty over US tariffs, elevated inflation expectations, and declining consumer confidence weighed heavily on sentiment. Key indicators, such as the University of Michigan and Conference Board surveys, pointed to growing consumer pessimism, while a raft of cautious corporate guidance and mounting policy uncertainty pushed recession probabilities higher. Risk assets sold off: the S&P 500 dropped 5.6%, and both high yield and investment grade credit widened. US Treasuries were mixed but with a clear curve steepening trend. Europe diverged, with a major fiscal shift toward defense spending, driving longer German yields sharply higher – March saw the largest Bund yield jump since reunification. Meanwhile, the ECB cut rates again, in contrast to a steady Fed. This widening policy gap supported flows into European credit and underpinned its resilience, reinforcing investor preference for high-quality assets in an increasingly fragile environment.

Based on transaction prices, the fund's return was -0.44%. This month, the Global Aggregate Corporate Bond Index returned -0.54% (hedged to EUR), with excess returns of -0.37%. The negative total return was hence driven by both wider spreads and higher underlying government bond yields. The credit spread of the Bloomberg Global Aggregate Corporate Bond Index widened by 7 basis points to 96 basis points over government bonds. Underlying government bond performance was mixed— the yield on 10-year US Treasuries was broadly unchanged at 4.21%, while the yield on the 10-year German Bund increased by 33 basis points to 2.74% over the same period. The portfolio performed broadly in line with its benchmark before fees. The modest overweight beta position detracted slightly from returns, though this was fully offset by positive issuer selection. The key contributor was our overweight in TenneT, which benefited from renewed optimism around German infrastructure spending and speculation that TenneT Germany could be nationalized.

Markets are gripped by fear as aggressive US tariff policies fuel global economic uncertainty, strain international relations, and drive capital outflows toward Europe and Asia. Trade tensions have disrupted traditional market correlations, with US credit underperforming amid slowing growth, persistent inflation, and waning confidence in policy direction. In contrast, Europe is benefiting from fiscal support and more accommodative monetary policy, bolstering both credit markets and investor sentiment. Despite rising volatility, credit valuations remain tight, supported by technical factors. However, high yield spreads had grown overly compressed – particularly in the lower-rated segments – and are now beginning to underperform as risk sentiment deteriorates. In this environment, banks and domestically focused companies are preferred. Meanwhile, concerns around the safety of US assets are putting pressure on the dollar's reserve currency status. Investment positioning remains cautious, with a focus on issuer selection and a preference for European over US credit, due to stronger fundamentals and supportive technicals.