Robeco QI Global Multi-Factor High Yield FH EUR

The Bloomberg Global High Yield Corporates ex-Financials Index posted a credit spread return of -1.73%, as credit spreads widened significantly from 348 bps to 402 bps. The euro-hedged total return was -3.53%, as underlying government bond yields increased substantially. Stagflationary trends and geopolitical uncertainty weighed on markets in April. Central banks signaled rate hikes in response to continued inflation. Earnings results surprised on the upside, particularly in Europe. Cyclical sectors delivered the bulk of earnings growth, but lagged defensive sectors with respect to earnings beats. China reinstated lockdowns and mass testing in response to Covid resurgences, while infection rates continued to decline in Western countries. Russia withdrew from Kyiv and redeployed forces in the Eastern and Southern regions of Ukraine, while the West developed further sanctions.

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.

The fund incorporates sustainability in the investment process via exclusions, ESG integration, ESG and environmental footprint targets, and engagement. The fund does not invest in issuers that are in breach of international norms or where activities have been deemed detrimental to society following Robeco's exclusion policy. Via portfolio construction rules the fund targets a better ESG score and lower carbon, water and waste footprints than that of the reference index. This ensures that credit issuers with better ESG scores or lower environmental footprints are more likely to be included in the portfolio, and vice versa. In addition, our credit analysts check buy candidates and portfolio holdings for ESG risks that may have material impact for bond holders. Lastly, where corporate issuers are flagged for breaching international standards in our ongoing monitoring, the issuer will become subject to engagement.

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 promotes E&S (i.e. Environmental and Social) characteristics within the meaning of Article 8 of the European Sustainable Finance Disclosure Regulation, integrates sustainability risks in the investment process and applies Robeco’s Good Governance policy. The fund applies sustainability indicators, including but not limited to, normative, activity-based and region-based exclusions, and engagement. 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 BB+ rating (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, while still controlling relative risk through the application of limits (on currencies) to the extent of the 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.