Robeco Global Credits IH JPY

The Global Aggregate Corporate Bond Index returned -0.97% (hedged to EUR) last month. Credit spreads and interest rates were mixed. The 10-year US interest rate fell from 1.74% to 1.63%, and the German 10-year yield widened by 9 basis points to -0.20%. The credit spread on the Global Aggregate Corporate Bond Index was 4 basis points tighter at 0.91%.This year, the April earnings season was an interesting one. Demand for spread products was strong and many sectors are near YTD tights. Many of the first-quarter earnings reports published so far were better than expected. On a macro level, sentiment indicators like the purchasing managers' index show expectations of strong growth. This is also reflected in rising commodity prices. Central banks remain accommodative for now and are keen to run the economy hot. The ECB will step up PEPP asset purchases in the second quarter of this year. In the US, Biden has announced another stimulus package of USD 1.8 trillion.

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.

Robeco Global Credits is an actively managed fund that invests primarily in a diversified portfolio of global investment grade corporate bonds. The selection of these bonds is based on fundamental analysis.The fund's objective is to provide long term capital growth.The fund aims for a better sustainability profile compared to the Benchmark by promoting certain ESG (i.e. Environmental, Social and corporate Governance) characteristics within the meaning of Article 8 of the European Sustainable Finance Disclosure Regulation and integrating ESG and sustainability risks in the investment process. In addition, the fund applies an exclusion list on the basis of controversial behavior, products (including controversial weapons, tobacco, palm oil and fossil fuel) and countries, next to engagement.This fund has the flexibility to invest in other fixed income asset classes such as high yield, Emerging Credits and Asset Backed Securities. The fund can take limited active duration (interest-rate sensitivity) positions.The majority of bonds selected will be components of the Benchmark, but bonds outside the Benchmark may be selected too. The fund can deviate substantially from the weightings of the Benchmark. The fund aims to outperform the Benchmark over the long run, whilst still controlling relative risk through the applications of limits (on currencies) to the extent of deviation from the Benchmark. This will consequently limit the deviation of the performance relative to the Benchmark. The Benchmark is a broad market weighted index that is not consistent with the ESG characteristics promoted by 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.