Robeco QI Global Multi-Factor Bonds DH EUR

Government bond yields rose in September. German Bunds returned -1.4% in September, US Treasuries -1.2% and Japanese government bonds -0.4% (all returns hedged to EUR). US yields rose after the Fed meeting, with 5-year yields reaching 1% for the first time since February 2020. The Fed confirmed that they expect to start tapering their bond purchases later this year. Their median projection shows the first rate hike already in 2022, with the target rate reaching 1.8% in 2024. In the Eurozone, headline inflation has risen to 3.4%, the highest level since 2008. Equities sold off on the fear of an impact on third and fourth-quarter earnings. The Bloomberg Global Aggregate Corporate Index posted a credit return of 0.21%, as credit spreads tightened marginally from 90 to 88 bps. Credit markets remained robust, as the asset class is less sensitive to short-term earnings-related issues.

All currency risks are hedged.

All income earned will be accumulated and not be distributed as dividend. Therefore the entire return is reflected in the share price development.

ESG analysis is systematically incorporated in the highly disciplined investment process by using proprietary Smart ESG scores and RobecoSAM Country Sustainability Ranking. In the portfolio construction we ensure that more sustainable countries and companies are more likely to be included in the portfolio and that the ESG profile and the environmental footprint of the fund is more sustainable than the benchmark. In addition, our credit analysts use external sources to identify additional ESG risks, e.g. corporate governance issues or companies that have major litigation or regulatory risks. If these ESG risks may result in a material financial impact, we will not invest in these companies.

Robeco QI Global Multi-Factor Bonds is an actively managed fund that invests globally in bonds issued by governments, agencies and corporates. The selection of these bonds is based on a quantitative model.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. The fund uses low-risk, quality, value, momentum and size factors to select the most attractive bonds. The disciplined investment process aims to keep the credit and foreign exchange risk of the bond portfolio similar to that of the benchmark, but with the aim to generate higher returns due to its exposures to factors. The overall duration of the bond portfolio can be increased or decreased, depending on a systematic assessment of the bond market outlook.The majority of bonds selected will be components of the Benchmark, but bonds outside the Benchmark may be selected too. The fund can deviate 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, issuers and ratings) 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.

The fund aims to have its credit and currency exposure in line with that of the benchmark. The strategy can have moderate tracking error versus the benchmark. The portfolio volatility is restricted by a predefined threshold. The portfolio will make use of derivatives, which add to the leverage of the portfolio. The expected level of gross leverage is stated in the prospectus.