Robeco QI Dynamic High Yield IH USD

The global high yield bond spread decreased by 100 bps, while the European iTraxx Crossover Index decreased by 104 bps and the US CDX High Yield Index by 121 bps. The global CDS index return was 5.9%, with the underlying government bonds making a slightly negative contribution of -0.1%. The combined return of investing in CDS indices and government bonds was 5.8% last month, significantly higher than the 3.8% return of the cash high yield bond index. November was a very eventful month that started with the US elections, followed by the announcement from Pfizer that its vaccine is more successful than expected. Sentiment clearly changed into risk-on, with strong performance of equity and corporate bond markets. Especially companies that suffered in the Covid-19 recession (hotels, airlines, real estate companies) performed very well.

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.

For Robeco QI Dynamic High Yield the investment universe and the type of investments are such that it is not feasible to implement the ESG factors into the investment processes.

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.