RobecoSAM Global Green Bonds IH EUR

The Global Green Bond Index delivered a total return of -0.59% last month (EUR, hedged). The yield on 10-year German treasuries moved up 9 basis points to -0.11%, with the 5-year yield moving up 17 bps to -0.39%. The US Treasury 10-year yield moved up 6 bps to 1.55% at the end of the month. The credit spread (OAS) on the Global Green Bond Index widened 5 bps to 0.64% at the end of the month.In government bond markets there was volatility in especially front-end rates, fierce yield curve flattening and sizeable spread moves between countries. Front-end rates also rose and the back end flattened in the US, UK and Eurozone as the market was questioning central banks' tolerance for the current higher inflation. Within the Eurozone, Italy, Portugal and Greece suffered from widening in spreads over Bunds, as ECB President Lagarde confirmed that PEPP would end in March. Oil, gas and electricity prices stayed elevated. Low inventories, shortages in labor and supply bottlenecks are visible in most commodity markets. Central banks are becoming more hawkish, as the current high inflation becomes more anchored than expected. The Fed signaled a potential 2022 rate hike.

All currency risks are hedged.

The fund does not distribute a dividend.

The RobecoSAM Global Green Bonds strategy invests in bonds whose proceeds are used towards an environmental objective, referred to as green bonds. The eligibility of green bonds is based on an internally developed five-step framework. We assess if the issuer takes into account the ICMA Green Bond Principles, the Climate Bond Initiative and/or the EU Green Bond Standard. Then we identify and evaluate the allocation of the investment proceeds in line with the EU Taxonomy and EU’s six environmental objectives. We verify that the bond proceeds are allocated to projects that positively contribute to at least one of the six objectives, and do not significantly harm the other five: climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, waste prevention and recycling, pollution prevention and control, protection of healthy ecosystems. We require the bond issuers to report on the use of proceeds. In addition to the use-of-proceeds screening, we assess the wider sustainability strategy of the issuer. Finally, we require issuers to respect international norms related to conduct such as international labor rights, human rights and the UN Global Compact. In addition to the universe screening, our analysts integrate ESG factors in their fundamental analysis of companies and sovereigns.

RobecoSAM Global Green Bonds is an actively managed fund that invests in green bonds issued by governments, government-related agencies and corporates. The selection of these bonds is based on fundamental analysis. The fund's objective is to provide long term capital growth.The fund has sustainable investment as its objective within the meaning of Article 9 of the European Sustainable Finance Disclosure Regulation. The fund finances/ re-financing new and/or existing environmentally-friendly projects by investing in green bonds which are designed to support specific climate-related or environmental projects. The fund integrates ESG (i.e. Environmental, Social and corporate Governance) in the investment process, applies an exclusion list basis controversial behavior, products (including controversial weapons, tobacco, palm oil and fossil fuel) while avoiding investment in thermal coal, weapons, military contracting and companies that severely violate labor conditions, next to engagement. The fund invests at least two-thirds of its total assets in global green bonds with a minimal rating of "BBB-" or equivalent by at least one of the recognized rating agencies. Green bonds selection is based on an internally developed framework for which more information can be obtained via the website www.robeco.com/si. The Benchmark is aligned with the sustainable investment objective of the fund by applying clearly defined rules for classifying green bonds. The majority of bonds selected will be components of the Benchmark, but bonds outside the Benchmark may be selected too. The fund can deviate substantially 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 and issuers) to the extent of deviation from the Benchmark. This will consequently limit the deviation of the performance relative to the Benchmark. the Benchmark is aligned with the sustainable investment objective of the fund by applying clearly defined rules for classifying green bonds.

Risk management is fully embedded in the investment process so as to ensure that the fund's positions remain within set limits at all times.