Robeco Global Credits IH JPY

The Global Aggregate Corporate Bond Index returned 1.90% (hedged to EUR) last month. Credit spreads widened, while interest rates moved down. The 10-year US Treasury yield moved lower from 1.92% to 1.51%. The German 10-year yield moved from -0.18% to -0.43%. The credit spread on the Global Corporate Bond Index increased 5 basis point to 103.New records continued to be set in global equity markets amid optimism on trade, politics and central banks. Recent macro data in the US and Europe has been positive, resulting in optimism about the outlook. But the performance was reset because of a new virus. The coronavirus outbreak in China reverberated in global markets and pushed global yields down. While it is too early to gauge its overall impact, it is already clear that the virus will alter the near-term path of the global economy. The reaction on the equity and corporate bond market remains muted. The new issuances were well-absorbed in the market, as many investors were ready to take risk again. UK and Eurozone credit outperformed other markets, while US and EM credits lagged the global market.

All currency risks are hedged.

Robeco Global Credit make use of derivatives for hedging purposes as well as for investment purposes. These derivatives are very liquid.

The fund does not distribute a dividend. The income earned by the fund is reflected in its share price. This means that the fund's total performance is reflected in its share price performance.

Our analysis of issuers goes beyond the traditional financial factors and includes the issuers’ performance on ESG factors. We deem it essential for a well-informed investment decision to take into account those ESG factors that have the potential to materially impact the financial performance of the issuer. This perfectly matches the basic need to avoid the losers in credit management, as many credit events in the past can be attributed to issues such as poorly designed governance frameworks, environmental issues, or weak health & safety standards. The aim of ESG integration is to improve the risk/return profile of the investments and does not have an impact goal. ESG analysis is fully integrated in the bottom-up security analysis. We have defined key ESG factors per industry, and for every company we analyze how the firm is positioned versus these key ESG factors, and how this impacts the fundamental credit quality.

The Robeco Global Credits is aimed at investors seeking higher yields than those offered by government bonds, but without the higher risk of a pure high-yield corporate bond fund. The fund invests in the global credits markets with investment grade credit acting as the core of the global strategy. It does have the freedom to invest into other asset classes within the fixed income credit universe. The fund is managed by an experienced team with a proven track record capable of generating good performance in both rising and falling bond markets. Robeco's Global Credits fund offers the flexibility of an integrated strategy. The fund invests in the best-of-class credits across all asset classes regardless of type or location. The flexibility of an integrated credit strategy is increasingly required as central bank policies continue to desynchronize and as different credit markets reprice securities as their economies and companies improve at different rates. Robeco uses investment strategies that can provide solid returns in both rising and falling bond markets as proven by its strong track record. The fund benefits from the ample resources at its disposal to cover the credit markets .The investment team is highly experienced and stable with clear split in responsibilities between the portfolio managers and the credit analysts. The investment process is well structured and has a disciplined approach and is based both on a top down macro outlook of the credit markets and an in depth and comprehensive bottom up fundamental credit analysis. The fund applies a total return approach with the flexibility to invest in asset classes such as securitized, high yield and emerging markets. This allocation is based on attaining the best risk reward profile for the fund.

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.