Michiel de Bruin is Head of Global Macro and Portfolio Manager. Prior to joining Robeco in 2018, Michiel was Head of Global Rates and Money Markets at BMO Global Asset Management in London. He held various other positions before that, including Head of Euro Government Bonds. Before he joined BMO in 2003, he was, among others, Head of Fixed Income Trading at Deutsche Bank in Amsterdam. Michiel started his career in the industry in 1986. He holds a post graduate diploma investment analyses from the VU University in Amsterdam and is a Certified EFFAS Analyst (CEFA) charterholder. He holds a Bachelor’s in Applied Sciences from University of Applied Sciences in Amsterdam. Stephan van IJzendoorn is Portfolio Manager and member of Robeco’s Global Macro team. Prior to joining Robeco in 2013, Stephan was employed by F&C Investments as a Portfolio Manager Fixed Income and worked in similar functions at Allianz Global Investors and A&O Services prior to that. Stephan started his career in the Investment Industry in 2003. He holds a Bachelor’s in Financial Management, a Master's in Investment Management from VU University Amsterdam and is Certified European Financial Analyst (CEFA) Charterholder. Lauren Mariano is Portfolio Manager and member of Robeco’s Global Macro team. Prior to joining Robeco in 2024, she worked at Manulife as an analyst and as a fixed income portfolio management associate with a focus on sovereigns, currencies and macro-economic analysis. She started her career in the industry in 2017 at Manulife. She holds a Bachelor’s in Finance from Bentley University and is a CFA® Charterholder.

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 incorporates sustainability in the investment process via exclusions, negative screening, ESG integration, limits on investments in companies and countries based on ESG performance as well as engagement. For government and government-related bonds, the fund complies with Robeco’s exclusion policy for countries, excludes the 15% worst ranked countries following the World Governance Indicator 'Control of Corruption', and ensures the fund has a minimum weighted average score of at least 6 following Robeco's proprietary Country Sustainability Ranking. The Country Sustainability Ranking scores countries on a scale from 1 (worst) to 10 (best) based on 40 environmental, social, and governance indicators. For corporate bonds, the fund does not invest in credit issuers that are in breach of international norms or where activities have been deemed detrimental to society following Robeco's exclusion policy. Financially material ESG factors are integrated in the bottom-up security analysis to assess the impact on the issuer's fundamental credit quality. In the credit selection the fund limits exposure to issuers with an elevated sustainability risk profile. Lastly, where issuers are flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to engagement.For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on Bloomberg Euro Aggregate.

Government bond markets were mixed over February. The US market posted strong positive returns as the 10-year yield declined 33 basis points to 4.21%. The German 10-year Bund yield also declined, but only to an extent of 5 bps to 2.41%, erasing the negative year-to-date return to zero. The decline in US yields took place despite stronger data. Over February, a higher than anticipated US CPI print was released and the labor market saw strong upward revisitations in the number of jobs added, indicating continued strength. In the Eurozone, economic growth showed a disappointing 0.1% growth over the last quarter of 2024. Inflation was a tick higher than anticipated, but is still expected to return to the 2% target later this year. Germany held federal elections and the results came out mostly in line with election polling. The CDU/CSU took the most seats and a coalition is likely to be formed with the SPD. This expected new coalition is seen to boost defense and infrastructure spending.

Based on transaction prices, the fund's return was 0.66%. The fund posted a positive return over the month, slightly above its index. Duration positioning was neutral to performance, while yield curve contributed as the curve steepened over the month. Country positioning detracted though, mainly due to spread tightening in French government bonds after the survival of several confidence votes by the French PM Bayrou. SSA allocation also detracted slightly, mainly due to spread widening of the EU, which is named as one of the possible vehicles to issue debt for additional European defense spending. Covered bonds added to performance, due to lower than expected issuance. Credit allocation also contributed, with the recent new deals in particular performing very well.

Global trade uncertainty stemming from the US is starting to negatively impact consumer confidence, showing up in PMIs globally. This uncertainty is likely to impact growth through weaker investment and consumer spending in the coming months. Moreover, it is becoming clear that Europe needs to increase its defense spending, which is likely to be financed through higher issuance. We remain cautious on longer maturities in both the US and Europe as the effects of ongoing QT and fiscal risks are expected to lead to an increase in term premium. We anticipate the ECB to continue to cut its policy rate by 25 bps till June, while for the Fed, a broader range of possibilities needs to be taken into account. The French Prime Minister Bayrou survived six votes of no confidence and passed the 2025 budget. Yet, many of the structural issues regarding the French financial rating and political instability remain unchanged.