Matthew Jackson is Portfolio Manager Global Investment Grade in the Credit team. He joined Robeco in 2024 from Western Asset Management in London where he started his career in the industry in 2003 and consequently held roles of Risk Analyst, Portfolio Analyst, Research Analyst and Portfolio Manager of numerous dedicated credit funds and mandates. He holds a Bachelor’s in Economics (Hons) from the University of Sheffield. Daniel Ender is Portfolio Manager Investment Grade in the Credit team. Previously, he was a Credit Analyst at Actiam. Daniel started his career in the industry in 2018 at ABN AMRO. He has a Master’s in Financial Economics from Erasmus University Rotterdam and a Bachelor’s in Political Science and Economics from the University of Connecticut. Daniel also is CFA® charterholder. The Robeco Climate Global Credits is managed within Robeco’s credit team, which consists of nine portfolio managers and twenty-three credit analysts (of which four financials analysts). The portfolio managers are responsible for the construction and management of the credit portfolios, whereas the analysts cover the team’s fundamental research. Our analysts have long term experience in their respective sectors which they cover globally. Each analyst covers both investment grade and high yield, providing them an information advantage and benefiting from inefficiencies that traditionally exist between the two segmented markets. Furthermore, the credit team is supported by dedicated quantitative researchers and fixed income traders. On average, the members of the credit team have an experience in the asset management industry of seventeen years, of which eight years with Robeco.

The fund is established in Luxembourg and is subject to the Luxembourg tax laws and regulations. The fund is not liable to pay any corporation, income, dividend or capital gains tax in Luxembourg. The fund is subject to an annual subscription tax ('tax d'abonnement') in Luxembourg, which amounts to 0.01% of the net asset value of the fund. This tax is included in the net asset value of the fund. The fund can in principle use the Luxembourg treaty network to partially recover any withholding tax on its income.

Investors who are not subject to (exempt from) Dutch corporate-income tax (e.g. pension funds) are not taxed on the achieved result. Investors who are subject to Dutch corporate-income tax can be taxed for the result achieved on their investment in the fund. Dutch bodies that are subject to corporate-income tax are obligated to declare interest and dividend income, as well as capital gains in their tax return. Investors residing outside the Netherlands are subject to their respective national tax regime applying to foreign investment funds. We advise individual investors to consult their financial or tax adviser about the tax consequences of an investment in this fund in their specific circumstances before deciding to invest in the fund.

The fund’s sustainable investment objective is to contribute to keeping global temperature rise well-below 2°C by reducing the carbon footprint of the fund. Climate change and sustainability considerations are incorporated in the investment process via exclusions, ESG integration, a minimum allocation to ESG-labeled bonds and a carbon footprint target. The fund does not invest in companies that are in breach of international norms and applies the activity-based exclusions of Article 12 of the EU regulation on Climate Transition Benchmarks, EU Paris-aligned Benchmarks and sustainability-related disclosures for benchmarks as per Robeco’s exclusion policy. ESG factors, including climate change, are integrated in the bottom-up security analysis to assess the decarbonization potential and the impact of financially material ESG risks on the issuer's fundamental credit quality. Furthermore, the fund invests at least 5% in green, social, sustainable, and/or sustainability-linked bonds. In the portfolio construction the fund targets a carbon footprint at least equal to or better than the Solactive Paris Aligned Global Corporate Index. This is to ensure the fund is aligned with the desired decarbonization trajectory of an average 7% year on year.For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on Solactive Paris Aligned Global Corporate Index (hedged into GBP).

February was a volatile month for markets, starting with concerns over US tariffs. Early in the month, the threat of 25% tariffs on Canada and Mexico and 10% on China spooked investors, leading to a risk-off sentiment. However, a last-minute extension for Canada and Mexico sparked a brief rally, though tariff concerns returned toward month-end, dampening risk appetite and pushing investors into safer assets such as sovereign bonds and gold. Credit markets showed resilience compared to other risky assets, with European credit outperforming. This was driven by favorable technical conditions and strong demand. While a stronger-than-expected US CPI raised inflation concerns, leading to some repricing of inflation expectations, the ECB remained cautious. In Europe, improving sentiment around domestic politics and the broader economy provided support, boosting European credit markets. The German election on February 23 resulted in a largely expected outcome, with the CDU/CSU bloc beginning talks with the SPD to form a new government. Though there's uncertainty around securing a two-thirds majority for constitutional changes, the result brought stability to German credit markets.

Based on transaction prices, the fund's return was 1.82%. This month, the Global Aggregate Corporate Bond Index returned 1.07% (hedged to GBP). The positive total return was primarily driven by movements in underlying government bond yields. The credit spread of the Paris-Aligned Global Corporate Index widened by 5 basis points to 84 basis points over government bonds. Meanwhile, underlying government bond performance was mixed – the 10-year US Treasury yield fell by 32 basis points to 4.21%, while the yield on the 10-year German Bunds decreased by 6 basis points to 2.40% over the same period. The portfolio outperformed its benchmark before fees, largely driven by effective issuer selection. Beta had little impact on performance. Our regional positioning – being overweight in euro-denominated credit and underweight in USD credit – was the primary source of excess returns. Euro credit spreads remained mostly flat, while US credit spreads widened by 8 basis points. Another key factor in outperformance was our underweight in bonds with maturities beyond 10 years and overweight in bonds with maturities up to 10 years, as the credit curve steepened during the month.

Credit markets have shown resilience in 2024, navigating challenges such as political turmoil, rate volatility, and geopolitical tensions. Despite tight spreads near historic lows, strong demand driven by attractive total yields persists, creating a valuation conundrum. The US economy has defied expectations of a downturn, supported by fiscal stimulus, pent-up demand, and long-term debt obligations, with little fear of recession or inflation resurgence in 2025. Europe lags, facing sluggish growth and energy cost pressures, but potential fiscal and Chinese stimulus provide some optimism. Donald Trump's re-election introduces uncertainty, including risks of tax cuts and trade wars, though his focus on market stability and conflict resolution could mitigate impacts. Emerging markets remain resilient with improved corporate fundamentals. While risks to spreads remain, strong technical factors such as robust reinvestment flows and pension demand bolster credit. Given these strong technical factors, we are aligning overall risk with the benchmark, based on current valuations. Without the robust demand dynamics mentioned earlier, we would likely take a more conservative approach.