RobecoSAM Global SDG Credits IH EUR

The Global Aggregate Corporate Bond Index returned 1.11% (hedged to EUR) last month. Credit spreads tightened, while interest rates moved tighter. The 10-year US Treasury yield moved from 0.64% to 0.65%. The German 10-year yield moved from -0.59% to -0.45%. The credit spread on the Global Corporate Bond Index dropped 24 basis points to 1.63%.Covid-19 continues to spread across the globe. When conditions allow, governments are trying to open their economies by easing lockdown measures. With economies expected to reopen and as OPEC 2.0 is making further supply cuts, oil prices have moved up. Central banks and policymakers continue to proactively expand fiscal and monetary measures to put a floor under the markets. The Fed is aiming to quash volatility, lift asset prices and debase the currency, all of which is positive for EM and weaker companies. The ECB communicated it would do “whatever it takes”, as PMI numbers continued to illustrate a bleak outlook. As markets re-price in the future impact of the virus, old issues are brought up to the surface, such as the US-China trade war, Brexit risk, unsustainable debt/GDP figures and deglobalization.

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.

In this fund we look for investments with a positive societal impact, whilst generating healthy financial returns. We define impact as an alignment with the UN Sustainable Development Goals (SDGs). We identify and evaluate the impact that specific credits have on the SDGs, and score all the issuers under coverage of the analysts’ team. These scores categorize credits as having either a Positive, Neutral, or Negative impact on the SDGs. The scores are then used in a screening process, to define the investable universe that exclude credits with a Negative impact on the SDGs. In addition to the universe screening, our credit analysts integrate ESG factors in their analysis of the companies fundamental credit quality to strengthen our ability to assess the downside risk of our credit investments. Furthermore the portfolio’s environmental footprint is actively reduced and a part of the portfolio is allocated to green bonds.

RobecoSAM Global SDG Credits invests in a diversified portfolio of global investment grade corporate bonds. Core of the portfolio is invested in investment grade credits, complemented by best opportunities in High Yield and Emerging Markets The selection of these bonds is based on fundamental analysis. The fund aims to contribute to realizing the UN SDG goals by assessing the SDG score of all companies in the universe. The fund does not invest in companies that do not contribute to these goals. The investment philosophy is based on managing a solid diversified portfolio with a long term view. Companies that don't contribute to the realization of the SDG Goals as set by the UN are excluded from the universe. Top-down beta positioning is based on the outcome of our credit quarterly outlook meeting, which defines the current credit environment and where we are in the credit cycle. This analysis is based on a fundamental, valuation and technical perspective. Bottom-up issuer research is executed by our credit analysts, who undertake  the fundamental analysis. Analyst research reports are discussed in approx. 500 credit committees per year. The portfolio managers are responsible for the portfolio construction. A proprietary developed risk management approach avoids high risk concentration in the portfolio. As the investment process is well-structured and proven over time, it contributes to repeatable performance delivery.

Risk management is fully embedded in the investment process to ensure that positions always meet predefined guidelines.