Robeco Global SDG Credits

Investment rationale

Robeco Global SDG Credits FH EUR is a global corporate bond fund intended for investors seeking long-term capital growth through credit markets while integrating ESG considerations as a binding element in the investment process. The fund has a risk indicator of 3 out of 7 and a recommended holding period of 3 years, and is suitable for investors who can set aside capital for at least 3-5 years and accept volatility. It can accommodate capital growth, income and portfolio diversification objectives, and invests across developed and emerging markets, making it usable as a diversified global credit allocation. Its distinct feature is the combination of active global credit selection with Robeco’s internally developed SDG framework, alongside Article 8 ESG characteristics and exclusions.

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How the strategy works

The fund’s objective is to provide long term capital growth by investing in corporate bonds in global developed and emerging markets. It invests at least two-thirds of total assets in non-government bonds, which may include contingent convertible bonds, similar non-government fixed income securities and asset-backed securities, and it will not invest in assets rated below B- by at least one recognized rating agency. The benchmark is the Bloomberg Global Aggregate Corporates Index hedged into EUR; the sub-fund is actively managed, uses the benchmark for asset allocation purposes, may invest in securities outside the benchmark, and can deviate substantially from benchmark weights while controlling relative risk through limits including on currencies. All currency risks are hedged, the FH EUR share class is hedged to EUR, the fund may use derivatives for hedging as well as investment purposes, the share class is accumulating with no dividend payment, and units can be traded daily.

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Investment philosophy

• The fund invests in corporate bonds across developed and emerging markets, with at least two-thirds of assets in non-government bonds; eligible instruments may include contingent convertible bonds, other non-government fixed income securities and asset-backed securities, and holdings must be rated at least B- by one recognized rating agency.

• The portfolio is built from an eligible investment universe and incorporates ESG integration, Good Governance policy and normative, activity-based and region-based exclusions under Article 8; sector positioning is also influenced by SDG profiles, which limits exposure to issuers with less favorable SDG characteristics.

• As of 31 August 2026, the largest sector weights were Financials 41.7%, Industrials 31.0%, Treasuries 6.4%, Agencies 5.4% and Utilities 5.0%; the largest currency denominations were U.S. dollar 50.1%, euro 41.5% and pound sterling 5.2%, with all currency exposure hedged back to the benchmark by default.

• The top 10 holdings totaled 18.15% and included JPMorgan Chase & Co, MTR Corp Ltd, Korea Housing Finance Corp, Cellnex Telecom SA, Deutsche Bank AG, British Telecommunications Ltd, NatWest Markets PLC, Volkswagen Bank GmbH, Goldman Sachs Group Inc/The and Charter Communications Operating LLC / Charter Com; risk management is described as fully embedded in the investment process so that positions meet predefined guidelines.

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Management team

The fund management team consists of Michael Booth, Matthew Jackson, Daniel Ender and Joost Breeuwsma.

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Distinctive features

The fund combines active global credit investing with a formal SDG-based selection framework and Article 8 ESG characteristics. It has broad instrument flexibility across corporate bonds, contingent convertible bonds and asset-backed securities, while maintaining a minimum rating floor of B-. The portfolio is globally diversified by currency denomination and sector, yet all currency risks are hedged to EUR. It is daily tradable, structured as an open-end UCITS V Luxembourg SICAV, and this share class does not distribute dividends.

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Risks

The share class has a summary risk indicator of 3 out of 7. The value of shares is sensitive to market fluctuations, instrument prices and changes in political, economic or market conditions, and corporate bonds are more risky and volatile than government bonds. The fund may use derivatives for hedging and investment purposes, which can create leverage and increase exposure to market fluctuations, and it is exposed to counterparty risk, though this is reduced by exchanging collateral. Additional risks include potential investment in Chinese debt securities through Bond Connect, with liquidity, regulatory, custody and broker risks, and investment in contingent convertible bonds, which may convert into equity or suffer full or partial write-down upon a trigger event. Sustainability risks are integrated in investment decisions and may impact returns, while the fund promotes ESG characteristics but does not have sustainable investing as its objective; all currency risks are hedged.

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Asset manager

The management company is Robeco Institutional Asset Management B.V. It is authorised in the Netherlands and regulated by the Autoriteit Financiële Markten. The fund is a sub-fund of Robeco Capital Growth Funds, a Luxembourg SICAV.

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Performance commentary

In August 2026, the manager says credit spreads in both US and EUR investment grade were unchanged, while government bonds sold off, especially in Europe, with Bund yields rising more than US Treasury yields. Looking into the second half of the year, the managers see robust fundamentals colliding with a more hawkish central-bank backdrop after higher inflation linked to the Iran war energy shock and June hikes by the ECB and Bank of Japan. Sector positioning includes a slight overweight in corporate credit risk, underweights in more carbon-intensive sectors such as energy and capital goods, and an overweight in communications through names such as Charter, Cellnex, BT Group and AT&T; the portfolio held no active duration positioning.

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