Robeco Climate Global Bonds DH EUR

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 0.05% 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.

The fiscal consequences of investing in this fund depend on the investor's personal situation. For private investors in the Netherlands real interest and dividend income or capital gains received on their investments are not relevant for tax purposes. Each year investors pay income tax on the value of their net assets as at 1 January if and inasmuch as such net assets exceed the investor’s tax-free allowance. Any amount invested in the fund forms part of the investor's net assets. Private investors who are resident outside the Netherlands will not be taxed in the Netherlands on their investments in the fund. However, such investors may be taxed in their country of residence on any income from an investment in this fund based on the applicable national fiscal laws. Other fiscal rules apply to legal entities or professional investors. We advise 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.

Sustainability is incorporated in the investment process via exclusions, ESG integration, a minimum allocation to ESG-labeled bonds as well as a carbon footprint target for both the government bond component and the credits component. For government bonds, the fund complies with Robeco’s exclusion policy for countries. For credits, 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 through exclusions 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 quality. Furthermore, the fund invests at least 2.5% in green, social, sustainable, and/or sustainability-linked bonds. In the portfolio construction the fund targets carbon footprints at least equal to or better than the government bond component and the credit component of the Solactive Paris Aware Global Aggregate Index, respectively. This is to ensure the fund is aligned with the desired decarbonization trajectory of an average 7% year on year.The following sections display the ESG-metrics for this fund along with short descriptions. For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on Solactive Paris Aware Global Aggregate Index (hedged into EUR).

Government bond market returns were mostly positive over November, with Eurozone bonds showing the strongest returns. Yields declined sharply on German government bonds, with the 2-year maturity yield declining a total of 33 basis points to 1.95%. US government bond yields were also somewhat lower, however the decline was concentrated in longer maturity bonds. The 10-year yield declined 11 basis points to 4.17%. The Japanese bond market posted negative returns as yields continue to drift higher. Over the month, the US presidential elections caused a large divergence between US and Eurozone bonds. US yields initially rose as the market focused on possible higher government spending, followed by flattening as focus shifted toward the inflationary impact of potential trade tariffs. In the Eurozone, the opposite reaction occurred, as US tariffs would likely hit economic growth leading to a deeper cutting cycle for the ECB. Within the Eurozone, French government bond spreads to Germany remain under pressure and set new highs. 10-year OAT spreads widened by 7 bps to 0.81%, this spread level is now higher than that of Spanish government bonds.

Based on transaction prices, the fund's return was 0.70%. The fund posted a positive return in November. The fund's steepener positions in the UK and Europe added to performance while contribution from duration was also positive. Country spread also contributed, as French yields versus Germany widened to new highs.

After the US elections, it has become clear that president-elect Trump is not afraid to use the threat of tariffs. While this brings possible inflation risks for 2025, we believe the Fed will likely stay on course to cut at the December meeting. Further out, a Trump presidency likely leads to more policy uncertainty. The ECB outlook is more stable, as its largest economy remains sluggish, and any US tariffs would only add to existing concerns on competitiveness. The problems facing France are unlikely to be resolved on a short time horizon. In December, the budget for next year needs to be approved, but political tension remains high. We remain underweight in France and Italy government bonds versus an overweight in Spain and Greece, as rating trajectories face opposite directions.