Robeco Corporate Hybrid Bonds IH USD

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. Jan Willem Knoll is Portfolio Manager Investment Grade in the Credit team. He joined the Credit team in 2016 as Analyst for the Financials sector. Previously, Jan Willem headed the Financials Equity sell-side research team at ABN AMRO. He started his career in the industry in 1999 at APG, where he held several positions including Portfolio Manager of global insurance portfolio pan-European financials portfolios. Jan Willem holds a Master’s in Business Economics from the University of Groningen and he is a CFA® Charterholder. The Robeco Corporate Hybrid Bonds 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 5% 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 Global Corporate Hybrids 3% Issuer Cap.

April was marked by extreme volatility in financial markets following the US announcement of reciprocal tariffs. Markets plunged after the US unveiled sweeping measures on April 2nd, which far exceeded expectations in terms of breadth and severity. The S&P 500 fell over 10% in two days – its fifth-worst post-WWII drop – while the VIX spiked above 50. Credit spreads widened sharply, with high yield OAS gapping over 100 bps in two days, mirroring the S&P 500's historic decline. Rates volatility surged, with the 30-year treasury yield briefly breaching 5%, and the 10-year UST-Bund spread posting its largest weekly widening since reunification. Market tone improved after a 90-day pause on most tariffs was announced, triggering a sharp risk rally. Issuance resumed, albeit selectively, with deal terms remaining issuer-friendly only for the highest quality names. By month-end, credit markets had retraced a large part of the widening, though spreads remained elevated versus March and the VIX above pre-crisis levels.

Based on transaction prices, the fund's return was 0.15%. The Global Corporate Hybrids Index delivered a total return of 0.12% (hedged to EUR) last month, despite excess returns of -0.97%. The positive total return was supported by falling underlying government bond yields, which helped offset the impact of widening credit spreads. Spreads on the Bloomberg Global Corporate Hybrids 3% Issuer Cap Index widened by 26 basis points over the month, reaching 208 basis points above government bonds. Meanwhile, 10-year US Treasury and German Bund yields declined by 4 and 29 basis points, respectively, to 4.16% and 2.44%. The portfolio underperformed versus its benchmark index before fees, largely due to negative issuer selection. A key driver of this underperformance was our substantial underweight in US utilities, which performed particularly well during the month – especially longer-call bonds that traded at spreads below their shorter-duration counterparts. Additionally, our overweight in the energy sector, focused on high-quality issuers such as Enbridge, BP, Total, and TransCanada, detracted from performance as these names underperformed in line with the decline in oil prices.

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.