Robeco QI Dynamic High Yield EH EUR

The global high yield bond spread tightened sharply by 82 bps. The European iTraxx Crossover tightened by 72 bps and the US CDX High Yield by 108 bps. The CDS index return in Europe thus underperformed the US. The global CDS index return was 4.13% and the underlying government bonds contributed 1.54% due to declining yields. Therefore, the combined return of investing in CDS indices and government bonds was 5.67% last month, outperforming the 5.03% return of the high yield cash bond index. In July, credit spreads partially recouped the losses from June. Central banks' policies remained a key theme for investors. As expected, the Fed raised its benchmark rate by 0.75%, as it is still focused on bringing down inflation. However, the focus of financial markets shifted more towards slowing growth, leading to a decline in Treasury yields. Hopes for a Fed pivot rose, helping credits spreads to tighten. In Europe, the ECB hiked rates for the first time in more than ten years, moving from -0.50% to 0%.

Currency risks are hedged.

The fund distributes a dividend on an annual basis.

The fund is classified as falling under Article 6 of Regulation (EU) 2019/2088 of 27 November 2019 on sustainability-related disclosures in the financial sector.

Robeco QI Dynamic High Yield offers well-diversified exposure to US and European high yield corporates by investing in highly liquid CDS indices. These indices are much more liquid than direct investments in high yield bonds. Because of their high liquidity, investors can use these CDS indices to efficiently get high yield exposure with much lower transaction costs than through high yield bonds. The performance of Robeco QI Dynamic High Yield is driven by a unique quantitative market-timing model. This proprietary model has a track record of over 10 years. The model is based on academic research and uses a variety of factors, amongst others from credit and equity markets, to forecast credit returns. Based on this forecast, the exposure of the fund to the high yield corporate bond market will be decreased or increased. As a result, the beta of the portfolio varies between 0.5 and 1.5, to reduce risk in declining markets and to benefit more in rising markets. Robeco QI Dynamic High Yield Fund aims to offer a better return than the Bloomberg Barclays Global High Yield Corporate index. The index is used to express the benefits of the strategy as an alternative to passive or direct investments in high yield bonds. Weekly positioning updates are available upon request.

The investment strategy of the fund aims to outperform its 100% exposure to high yield corporates by taking active beta positions based on Robeco's quantitative market timing model. These active positions are set to always meet the predefined guidelines. As the investment exposure of the fund is obtained to a material degree through derivatives, it is important to manage counterparty risk. Therefore the credit quality of the counterparties is monitored and collateral is exchanged on a daily basis to reflect market movements in the value of the instruments. The predefined guidelines also restrict the leverage exposure of derivatives on a fund level and the currency exposure as described in the prospectus.