Robeco High Yield Bonds IBxH EUR

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 0.01% 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.

Investors who are not subject to (exempt from) Dutch corporate-income tax (e.g. pension funds) are not taxed on the achieved result. Investors who are subject to Dutch corporate-income tax can be taxed for the result achieved on their investment in the fund. Dutch bodies that are subject to corporate-income tax are obligated to declare interest and dividend income, as well as capital gains in their tax return. Investors residing outside the Netherlands are subject to their respective national tax regime applying to foreign investment funds. We advise individual 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.

In the month of January, spreads in the US high yield market tightened by 23 bps and yields by 24 bps, ending the period at 277 bps and 6.91%, respectively. The return of Trump to the White House was welcomed by a series of positive economic datapoints on the US economy. Services and manufacturing PMIs, an industrial production growth of 0.9% (MoM) and stable low unemployment point toward a rosy start of the year. The latest CPI inflation showed an increase for the third consecutive month, data was in line with expectations of 2.9% over the year. Inflationary policies voiced by the US president such as tariffs, tax cuts and deregulations have not yet materialized, but are being increasingly priced in by the market, with treasury yields moving up. The Fed kept rates unchanged as their first policymaking decision of the year. The economy is set to remain weak in Europe for the near term, with fears that tariffs will be announced in the US. Policymakers at the ECB decided to cut rates by a quarter point, down to 2.75%. New issues in the US high yield market in January totaled 23 bln, while default activity was at the 2-year lows.

Based on transaction prices, the fund's return was 0.72%. In January, the high yield bond index recorded a total return of 1.02%. This performance was driven by credit excess returns (78 bps), as well as by the underlying treasury bonds' yields ending the month slightly tighter after bouts of volatility. The portfolio underperformed by 22 basis points over the month. Both beta positioning (-10 bps) and issuer selection (-12 bps) were detractors over the month. Our overweight in EUR bonds did not pay off on a risk-adjusted basis, as USD bonds outperformed EUR. Exposure to the higher-quality segment of the HY market paid off in the dollar bonds, whereas Euro-denominated CCCs outperformed. Underweight in communications was the main positive contributor, adding 4 bps of positive performance. Overweight in capital goods, however, detracted 18 bps over the month. This result was mainly driven by our holdings in the vending machine business Selecta, as worries for a near-term restructuring are increasing. Overweight in EQM Midstream bonds contributed 2 bps, as the higher gas prices will help the company pay off its debt.

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.