# ROB«CO
The Investment Engineers
be a  nd0ning its Z9FO-C0Vi d policy. This led to a strong rally in Chinese and other Asian assets. SecondIy, the Chinese
government is more aggressively supporting economic growth and its	real estate sector.
One part of the European credit market that remains under pressure is the real estate sector. Higher bond yields has led to lower propeny valuations and this had a negative impact on spreads in this sector.
Spreads of different subordinations within financials
900
800
600
500
^00
200
Sep 17
Dec 17
M ar 20
Dec 20
Sep 21
Sep 18
Dec 18
100
European Banks CoCo Tier 1	
Euro Agg Insurance- Lower Tier 2	— Banking Lower Tier 2
Source:	Robeco. Data until end of November 2022.

## positioning
Maintained modest beta overweight and preference for Tier 1 CoCos
From a top-down perspective, we maintained our modest beta overweight	over the month as we believe this is prudent given current spread levels. Although these have tightened substantially from this year's peak
spreads are still trading at top quartile levels. The fund also continues to hold a long position in eu a swap spreads, which have also tightened	over the past seven weeks but are still trading	long-term average levels. We expect it to continue to normalize over the coming quavers.
We continue to see value in European banks as there are several positive catalysts. First of	the European	sector in general is in healthy shape as capitalization, funding and liquidity are all very strong. In	higher interest rates will	their	are partly shielded from increasing credit losses thanks to
lending programs implemented during the Covid pandemic. Overall, we believe the European banking sector is resilient to	top	are	and De	We
insurance sector's features and prospects. European insurers in general are in healthy shape, can	from higher interest rates and trade at attractive spread levels.		insurance debt provides diversification		as it less cyclical through the market cycle relative to bank	0ur top holdings are	ASR and Helvetia. Finally, we
remain cautious on the real estate sector, as it is	due to a	of elevated property prices and higher interest rates.
a	2	2
issued	and 32% in Tier 2	issued	insurance companies.	19% of the portfolio is invested in Tier CoCos, of which 15% represent banking Additional Tier 1 CoCos and 4% represent insurance Restrictive Tier 1 CoCos. The exposure to senior	(2%) is		and comprises bonds of Banco Comercial Portugués and Credit Suisse. The
allocation remained fairly stable over the month.
All examples mentioned are for information purposes only and not intended as investment advice in any way. The value of your investments may fluctuate. Results	in the past are no guarantee for the future.
2	| Strong month for credit
ROB«CO
The Investment Engineers
Transactions
Ad	holdings to the portfolio through new issues is	 as it is cost ehicient and typically overs an attractive new issue premium. We participated in several new issues over the month, as new bond supply picked up on the	of positive market sentiment. We participated in new deals of	ABN AMRO Bank, HSBC and DNB, as new callable instruments are now issued with attractive reset spreads. Conversely, we took profit on NN Group,	Insurance Group and SEB. Although Credit Suisse continued to under perform amid idiosyncratic	we trimmed the exposure to Credit 
Suisse senior	for risk management purposes.
Historical Beta
1.6
L5
1.4
1.3
1.2
1.1
1.0
0.9

### Source:	Robeco. Data until end of November 2022
- Robeco Financial Institutions Bends (til130 November 2022)Country allocation top 10 - FinancialsSubordination type
- Netherlands
- France
- Spain
- Switzerland18.19é15.5%9.3%7.99â
- Banking Tier 2	36.3Ra
- Banking AdditiOnal Tier 1 COCo  TS.Who
- Banking Senior	1.6Ro
- Insurance Subordinated (dated)  22.IR
- United Kingdom B AustriaDenmark7.4%7.OFgg Insurance SubOrdinated (perpetual)
- Insurance Restricted Tier 112.3%3.5Ro

| - Germany
 | 4.5% | Financial Other |  |
| --- | --- | --- | --- |
|  | 3.8% | - Treasuries
 |  |
| - Belgium
 | 3.5% | - Cash and other instruments
 | 3.5% |


### Source:	Data until end of November 2022.
All examples mentioned are for information purposes only and not intended as investment advice in any way The value of your investments may fluctuate. Results	in the past are no guarantee for the future.

### 3	| Stronp month for credit
ROB«CO
The Investment Engineers
Percentage invested	CoCos
15%
10%
T2 CoCo	w RTT CoCo
Source:	Data until end of November 2022.
Strong total returns driven by interest rates and credit spreads
The portfolio posted a strong positive return for the month (3.46% for the D EUR share class and 3.80% for the DH USD 
share class). The	financials index spread tightened no less than 46 bps to 305 bps at the end of the month As a result, the asset class outperformed versus government		with an excess return of 2.72%. The total return was 
also positively impacted by moves in underlying government	yields, as German	Treasury yields fell 21 bps to 
1.93%.
The portfolio outperformed its benchmark by 40 bps. Our beta policy contributed 29 bps, as the beta was	one while credits outperformed Treasuries. Issuer selection made a small negative contribution	The underweight position in real estate names contributed positively to the relative performance, while the overweight in	CoCos detracted Individual names that contributed most on a risk-add usted	were Aroundtown and brand City Properties
underweight		Banco Comercial Portugués, Bankinter and Sampo. Conversely, our overweight in Credit Suisse (senior	detracted as its credit spread continued to widen on the	of idiosyncratic issues.	our swap spread tightened position made a positive contribution (16 bps) as the 5-year swap spread tightened 20 bps over the month
Annualized performance Robeco Financial Institutions Bonds	
30 November 2022
|  | Nov-22 | 3-Month | YTD | 1-Year | 3-Year | 5-Year |
| --- | --- | --- | --- | --- | --- | --- |
| Robeco Financial Institutions Bonds (D EUR) | 3.4696 | -0.5096 | -11.989a | -11.589a | -2.4596 | -0.1596 |
| Benchmark (hedged into EUR) | 3.06% | 1.45% | 12.95% | 12.68% | -3.36% | -0.84% |
| Relative performance | 0.40% | 0.94% | 0.97% | 1.11% | 0.91% | 0.69% |
| Robeco Financial Institutions Bonds (DH USD) | 3.809a | 0.4196 | -9.9696 | -9.4396 | -0.8496 | 2.029s |
| Benchmark (hedqed into USD) | 3.38% | -0.59% | 11.04% | 10.64% | 183% | 1.27% |
| Relative performance | 0.42% | 1.00% | 1.09% | 1.22% | 0.99% | 0.75% |

The currency in which past performance is displayed may differ from the currency of your country of residence. Due to exchange rate	the	shown may increase or decrease if converted into your local currency. The value of your investments may fluctuate. Past	is no guarantee of future results. Performance is gross of
based on gross asset value. In reality, costs (such as management fees and other costs) are charged. These have a negative elect on the returns shown. Periods shorter than one year are not	Source: Robeco.	Euro Credit Bonds. Benchmark:	Eu ro Aggregate: Corporates Financials Subordinated 2% Issuer Cap
All examples mentioned are for information purposes only and not intended as investment advice in any way. The value of your investments may fluctuate. Results	in the past are no guarantee for the future.
4	| Stronp month for credit

Translation (ENES, 2022-11-30):
# ROB«CO
The Investment Engineers
Country allocation top 10 - Financials
| - Netherlands
 | 18.1% | - Ba nking +ier 2
 | 36.3% |
| --- | --- | --- | --- |
|  | 15.5% | Banking Additional Tier 1 CoCo | 15.1% |
|  | 9.3% |  |  |
| - Swit zerland
 | 7.9% | - Insurance Subordinated (dated)
 | 22.1% |
| United KingdOm Austria | 7.^% 7.0% | Insurance Subordinated (oeroetual) | t |

Denmark
3.8%
3.5%
Insurance Restricted Tier 1 Finane ial Other
- +reasur ies
- Cash a nd other instruments^.1%Fuente: Robeco. Datos hasta final de noviembre de 2022Percentage invested in CoCos15°/o10%T2 CoCo	o RTE CoCoFuente: Robeco. Datos hasta final de noviembre de 2022.

Rentabilidad
Rentabilidades totales sólidas impulsadas por los tipos de interés y los diferenciales de crédito
La casera registró una rentabilidad total positiva en el mes (3,46 % para la clase de aviones D EUR y 3,80 % para la DH
USD). El diferencial del índice de los productos financieros subordinados se estrechó nada menos que 46 puntos
hasta los 305 al acabar el mes. Como	la clase de activos superó a la deuda	con un rendimiento
excedente del	%. La rentabilidad total	se vio beneficiada por los movimientos de los intereses de la deuda
ya que los intereses del Tesoro alemán a 10 anos cayeron	puntos básicos, hasta el 1,93 %.
La casera superó a su índice de referencia en 40 puntos	Nuestra política sobre la  aportó 29 puntos
ya que la beta se situó por encima de uno mientras que los cré ditos superaron a la deuda pública. La selección de emisores restó ligeramente a la	(-5 pb). La posición infraponderada en títulos	tuvo un efecto positivo en el rendimiento relativo, al cont rario que la   ponderación en CoCo	Las empresas que más
una base ajustada al riesgo fueron Aroundtown y Grand city Properties (ambas infrapondera Banco Comercial Bankinter y Sampo. A la inversa, nuestra sobre ponderación en Credit Suisse	preferentes) resultó
perúudicial, ya que su diferencial crediticio continuó ampliá ndose por cuestiones idiosincráticas. Por ú	nuestra posición de estrechamiento de los diferenciales de los swaps	positivamente (16	ya que el diferencial de los swaps a 5 años se estrechó 20	durante el mes