Robeco QI Global Multi-Factor High Yield FH EUR

The Bloomberg Barclays Global High Yield Corporates ex-Financials Index posted a credit spread return of 0.62%, as spreads tightened from 346 bps to 337 bps. The (euro-hedged) total return was 0.05%, with a negative contribution from widening underlying government bond yield curves. March was another month of volatility in the global markets. Late-cyclical idiosyncratic events, such as the unwind of the Archegos hedge fund and the bankruptcy of Greensill Capital, moved the equity markets, causing several popular growth stocks to lose half their market value and banks to take on large losses. Overall, the high yield market remained unscathed, with even a small tightening of credit spreads for the month. Government bond yields increased substantially though, as investors are worried about a pickup in inflation due to additional stimulus in the US coupled with hopes of a post-vaccination economic recovery. Central bankers in the US and Europe have noted the volatility in the rates markets, but have not yet intervened.

All currency risks are hedged.

The fund make use of derivatives for hedging purposes as well as for investment purposes.

This share class of the fund does not distribute dividend.

ESG analysis is systematically incorporated in the highly disciplined investment process. This ensures that companies with higher ESG scores from RobecoSAM are more likely to be included in the portfolio, and vice versa. With these portfolio construction rules we aim for an ESG profile of the fund that is above that of the reference index. 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 High Yield is an actively managed fund that invests in high yield bonds. 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. The fund offers balanced exposure to a number of proven factors by focusing on bonds with a low level of expected risk (Low Risk factor), an attractive valuation (Value), a strong performance trend (Momentum) and a small market value of debt (Size). The investment universe includes bonds with a rating of “BB+” or equivalent or lower by at least one of the recognized rating agencies or with no rating.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) 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 to ensure that positions always meet predefined guidelines.