Robeco Financial Institutions Bonds Feeder Fund - zero duration D3H USD
- Diversified exposure to subordinated financial bonds
- Disciplined and repeatable investment process
- No active duration, nor FX exposure
About this fund
Price development
Price development
Performance
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundPerformances.date,'llll') ]}}| Fund | Reference index | |
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| 1 month | ||
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| 1 year | ||
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| {{'fund.detail.performance.period.sinceInception' | labelize:[ fundDate(fund.fundPerformances.sinceStart.startDate,'MM-YYYY') ]}} |
Annualized (for periods longer than one year).
Cumulized (total amount of return).
Performances are gross of fees and based on closing values. In reality, costs (such as management fees and other costs) are charged. These have a negative effect on the returns shown.
Performances are net of fees and based on transaction prices.
| Fund | Reference index | |
|---|---|---|
Annualized (for periods longer than one year).
Cumulized (total amount of return).
Performances are gross of fees and based on closing values. In reality, costs (such as management fees and other costs) are charged. These have a negative effect on the returns shown.
Performances are net of fees and based on transaction prices.
Performance explanation
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundInvestmentExplanations.date,'llll') ]}}Based on transaction prices, the fund's return was 1.23%. The underlying portfolio posted a positive return in December, which was better than the return of the index. The average credit spread of the index closed the month at a level of 149 basis points, which is 21 basis points lower than at the end of November. This means that subordinated financial bonds performed 1.07% better than underlying government bonds. Yields of underlying government bonds rose during the month, contributing negatively to the underlying portfolio’s return. The beta of the portfolio was above one during the month, which contributed positively to the performance of the fund. The contribution of issuer selection was positive too in December. US dollar bonds (approx. 6% of the portfolio) generated a better spread return than euro-denominated bonds. All non-euro exposures are hedged to euros. Insurance perpetuals outperformed dated instruments, the underlying portfolio holds an overweight position in the first category. The largest individual contributors to the relative performance were the overweight positions in Credit Agricole Assurances, BNP Cardiff and Axa.
Statistics
{{'fund.detail.general.perDate' | labelize:[ fundDate( (fund.fundStatistics.date?fund.fundStatistics.date:fund.fundCharacteristics.date) ,'llll') ]}}| 3 years | 5 years | ||
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| Hit ratio Bear (%) |
| Fund | Reference index | ||
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| Rating | |||
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Dividend paying history
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundFacts.date,'llll') ]}}| Date | Amount |
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Market development
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundInvestmentExplanations.date,'llll') ]}}Market sentiment continued to be positive in December, which was reflected in tighter credit spreads, higher equity prices and higher government bond yields. An important driver for markets was the outcome of the elections in the United Kingdom. The fact that the Conservative Party managed to get a majority in parliament makes a soft exit from the European Union at the end of January very likely. And maybe more importantly, the tail risk of a market-unfriendly Corbyn-administration has gone. UK bank spreads already rallied in October, when an immediate hard Brexit was avoided, but they rallied again after the UK elections. Also in December, the first meeting of the ECB governing council headed by Christine Lagarde took place. During the press conference she confirmed that no change in monetary policy should be expected in the near future. As usual, activity in the new issue market was limited in December. Only a handful of new subordinated financial bonds were issued, with the Restricted Tier 1 CoCo of Belgian insurance company Ageas probably being the most important one.
Fund allocation
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundAllocations.date,'llll') ]}}| Name | Sector | Weight |
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Fund Classification
| Yes | No | N/A | ||
|---|---|---|---|---|
| Voting | ||||
| Engagement | ||||
| ESG integration | ||||
| Exclusion |
| Yes | No | N/A | ||
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| Screening | ||||
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| Sustainability Themed Fund |
Currency policy
All currency risks are hedged.
Derivative policy
The Feeder Fund uses derivatives to hedge the duration of the Master. The duration hedge will lead to intended performance differences between the Feeder Fund and the Master. Interest rate movements will have a different effect on the Master and the Feeder Fund.
Dividend policy
This share class of the fund will distribute dividend.
ESG Integration policy
The prime goal of integrating ESG factors in our analysis is to strengthen our ability to assess the downside risk of our credit investments. Our analysts include RobecoSAM sustainability data and use external sources to make an ESG assessment as a part of the fundamental analysis.
Investment policy
This Fund is a feeder Fund ( the “Feeder Fund”) and as such invests at least 85% of its assets in class Z2H shares of Robeco Capital Growth Funds SICAV – Robeco Financial Institutions Bonds (“the Master”). The Master is a sub-fund of Robeco Capital Growth Funds SICAV, a Luxembourg open-ended investment company with variable capital. The Master invests mainly in subordinated euro-denominated bonds issued by financial institutions and similar non-government fixed income securities. The Master aims to outperform the benchmark by taking positions that deviate from the benchmark. The benchmark of the Master is Barclays Euro-Aggregate: Corp.Fin.Subordinated 2% Issuer Cap.
Risk policy
Risk management is fully embedded in the investment process to ensure that positions always meet predefined guidelines.
Expectation of fund manager
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundFacts.date,'llll') ]}}Spreads have tightened massively from the peak at the end of 2018 and are now approaching the levels of January 2018. However, after the ECB meeting in September, it has become clear that monetary policy will remain very accommodative for the next years. This means that interest rates will remain low and that investors are almost forced to hunt for yield.We do not think that searching for yield in the area of subordinated financial debt is too risky. It is clear that the quality of balance sheets has improved significantly over the past decade, especially for the banking sector. This is acknowledged by supervisors and the first relaxation of capital rules for European banks has been announced. In the near future, banks will be allowed to replace a small part of their common equity buffer by Tier 1 and Tier 2 debt. We do not see that as a turnaround in the restoration of capital buffers, but more as a confirmation that banks have reached buffer levels that are sufficiently high.In our portfolio construction we maintain our traditional conservative stance, while we still see interesting opportunities for instance in Spanish banks and in the relatively new category of insurance CoCos.
Jan Willem de Moor
Mr. de Moor is a Senior Portfolio Manager and a member of the Credit team. Prior to joining Robeco in 2005, Mr. de Moor was employed by SBA Artsenpensioenfondsen as Senior Portfolio Manager Equities for six years. Before that, he worked at SNS Asset Management holding positions of Portfolio Manager Equities (three years) and Research Analyst (two years). Jan Willem de Moor started his career in the Investment Industry in 1994. He holds a Master's degree in Economics from Tilburg University.
Team
The Robeco Financial Institutions Bonds fund 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.
Details
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundFacts.date,'llll') ]}}| Management company | |
| Fund capital | |
| Size of share class | |
| Outstanding shares | |
| ISIN | LU1874123406 |
| Bloomberg | ROFD3HE LX |
| Valoren | 43545773 |
| WKN | |
| Availability | |
| 1st quotation date | 1537228800000 |
| Close financial year | 31-12 |
| Legal status | |
| Tracking error limit (%) | |
| Reference index |
Cost of this fund
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| This fund deducts ongoing charges of |
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| Service fee | ||
Transaction costs |
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| The expected transaction costs are |
Performance fee |
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| This fund may also deduct a performance fee of |
Extra fees
| max entry fee | ||
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| Max sub fee | ||
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Fiscal product treatment
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.
Fiscal treatment of investor
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.
