Robeco Global Credits Feeder Fund - zero duration IH GBP
Unconstrained and contrarian approach across the different corporate bond segments
Share classes
Share classes
Every share class of a product invests in the same portfolio of securities and has the same investment objectives and policies. However, their parameters might deviate. For instance and amongst others, their distribution type, currency exposure or fees and expenses might differ. The most common share classes at Robeco are:
a) D/DH shares, which are regular shares and available for all Investors;
b) I/IH shares, for institutional investors as defined from time to time by the Luxembourg supervisory authority.
For more information on share classes please go to the prospectus.
IH-GBP
Class and codes
Asset class:
Bonds
ISIN:
LU1945300215
Bloomberg:
ROGFIHG LX
Index
Bloomberg Global Aggregate Corporates Index
Sustainability-related information
Sustainability-related information
Under the EU Sustainable Finance Disclosure Regulation, products can be labelled as either Article 6, 8 or 9 fund.
Article 6 - The fund is not in scope of enhanced sustainability disclosures compared to Article 8 and 9.
Article 8 - The fund does not have a sustainable investment objective but promotes environmental or social characteristics and is subject to enhanced sustainability disclosures.
Article 9 - The fund has a sustainable investment objective and is subject to enhanced sustainability disclosures.
Regardless of Article 8 or 9, the companies in which investments are made must follow good governance practices, and sustainable investments must not do any significant harm.
Article 8
- Overview
- Performance & costs
- Portfolio
- Sustainability
- Commentary
- Documents
MISSING: fund.detail.tabs.
Key points
- Promising investment opportunities in credits
- Flexible approach
- Investment policy
About this fund
This actively managed fund is a feeder Fund and invests at least 85% of its assets in shares of Robeco Capital Growth Funds SICAV - Robeco Global Credits (“the Master”). The Master invests in global credits markets with investment grade credit acting as the core of the global strategy.The fund's objective is to provide long term capital growth. The Feeder Fund uses derivatives to hedge the duration of the Master to nearly zero. The duration hedge will lead to intended performance differences as a result of interest rate movements between the Feeder Fund and the Master.
Defining fair value in global credit markets
Key facts
Total size of fund
£ 446,422,144
Size of share class
£ 446,422,144
Inception date share class
21-02-2019
1-year performance
8.14%
Dividend paying
No
Fund manager
Reinout Schapers
Reinout Schapers is Portfolio Manager Investment Grade in the Credit team. Prior to joining Robeco in 2011, Reinout worked at Aegon Asset Management where he was a Head of European High Yield. Before that, he worked at Rabo Securities as an M&A Associate and at Credit Suisse First Boston as an Analyst Corporate Finance. Reinout has been active in the industry since 2003. He holds a Master's in Architecture from the Delft University of Technology. The Robeco Global Credits 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.
Performance
Per period
Per annum
- Per period
- Per annum
1 month
0.75%
3 months
2.72%
YTD
1.48%
1 year
8.14%
2 years
5.16%
3 years
2.85%
5 years
3.02%
Since inception 02/2019
3.10%
2023
8.52%
2022
-2.18%
2021
1.81%
2020
4.70%
2021-2023
2.62%
Statistics
Statistics
Characteristics
- Statistics
- Characteristics
Sharpe ratio
This ratio measures the risk-adjusted performance and allows the performance quality of different investments to be compared. It is calculated by subtracting the risk-free rate from the fund's returns and dividing the result by the fund's standard deviation (risk). So the Sharpe ratio tells us whether a fund's returns are the result of smart investment decisions or stem from taking extra risk. The higher the ratio, the better, meaning that a greater return is achieved per unit of risk. This ratio is named after its inventor, Nobel Laureate, William Sharpe.
0.23
0.36
Standard deviation
Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread out the data is, the higher the deviation. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility (risk).
3.77
5.71
Max. monthly gain (%)
The maximum (i.e. highest) absolute positive monthly performance in the underlying period.
2.85
4.99
Max. monthly loss (%)
The maximum (i.e. highest) absolute negative monthly performance in the underlying period.
-2.58
-8.20
Rating
The average credit quality of the securities in the portfolio. AAA, AA, A en BAA (Investment Grade) means lower risk and BB, B, CCC, CC, C (High Yield) higher risk.
A2/A3
Option Adjusted Modified Duration (years)
The interest rate sensitivity of the portfolio.
0.10
Maturity (years)
The average maturity of the securities in the portfolio.
4.40
Costs
Ongoing charges
Indication of annual charges that are deducted for this fund. This indication is based on the costs over the last calendar year and may vary from year to year. Transaction costs incurred by the fund, any performance fees and other one-off costs are not included in the ongoing charges.
0.53%
Included management fee
A fee paid by the fund to the asset management company for the professional management of the fund.
0.40%
Included service fee
This fee is intended to cover official fees, such as the cost of annual reports, annual shareholders' meetings and price publications.
0.12%
Transaction costs
The transaction costs shown are the average annual transaction costs over the last three years calculated in accordance with European regulations.
0.59%
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 0.01% 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.
Fiscal treatment of investor
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.
Fund allocation
Currency
Duration
Rating
Sector
Subordination
Top 10
- Currency
- Duration
- Rating
- Sector
- Subordination
- Top 10
Policies
All currency risks are hedged into the GBP.
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.
The fund does not distribute dividend. The income earned by the fund is reflected in its share price. The fund's entire result is thus reflected in its share price development.
This actively managed fund is a feeder Fund and invests at least 85% of its assets in shares of Robeco Capital Growth Funds SICAV - Robeco Global Credits (“the Master”). The Master invests in global credits markets with investment grade credit acting as the core of the global strategy.The fund's objective is to provide long term capital growth. The Feeder Fund uses derivatives to hedge the duration of the Master to nearly zero. The duration hedge will lead to intended performance differences as a result of interest rate movements between the Feeder Fund and the Master. The fund promotes E&S (i.e. Environmental and Social) characteristics within the meaning of Article 8 of the European Sustainable Finance Disclosure Regulation, integrates sustainability risks in the investment process and applies Robeco’s Good Governance policy. The fund applies sustainability indicators, including but not limited to, normative, activity-based and region-based exclusions, and engagement. The Master aims to outperform the Benchmark by taking positions that deviate from the Benchmark. The Master fund aims to outperform the Benchmark over the long run, whilst still controlling relative risk through the applications of limits (on currencies and issuers) to the extent of deviation from the Benchmark. This will consequently limit the deviation of the performance relative to the Benchmark. The Benchmark is a broad market weighted index that is not consistent with the ESG characteristics promoted by the fund.
Risk management is fully embedded in the investment process so as to ensure that the fund's positions remain within set limits at all times.
Sustainability-related disclosures
Sustainability profile
Sustainability
The fund incorporates sustainability in the investment process via exclusions, ESG integration, a minimum allocation to ESG-labeled bonds, and engagement. 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. Furthermore, the fund invests at least 5% in green, social, sustainable, and/or sustainability-linked bonds. Lastly, where issuers are flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to engagement.
Market development
In February, the trend of spread tightening persisted alongside another robust month for risk assets on a broader scale. Several equity indices, including the S&P 500, reached record highs, partially credited to the sustained enthusiasm surrounding advancements in AI. Global economic data remained strong, reinforcing the narrative of a soft landing, as employment and consumer spending stayed resilient. On the contrary, stubbornly high inflation in the US, with January's core CPI at +0.4%, exceeding expectations, led investors to adjust rate cut expectations, pushing out the anticipated timing of the first rate cut to June. Consequently, sovereign bond yields increased further. US regional banks continued to grapple with challenges, notably New York Community Bancorp's reported loss due to raised loan loss expectations in commercial real estate. Finally, new issue activity continued to be strong and broadened away from financials, with high demand sustaining low concessions and pricing deals competitively against secondary curves. This solid technical backdrop, driven by robust fund flows and yield buyers, caused downward pressure on credit spreads across the board.
Performance explanation
Based on transaction prices, the fund's return was 0.75%. The Global Aggregate Corporate Bond Index returned -1.23% (hedged in euro) this month, while excess returns were +0.15%. Underlying government bond yields widened, with the German 10-year yields rising 24 basis points to 2.41% and the 10-year US Treasury rising by 34 basis points to 4.25%. By the end of the month, the credit spread on the Bloomberg Global Aggregate Corporate Bond Index tightened by four basis points to 106 basis points. The underlying fund performed better than the index. Performance attribution is divided between beta positioning and issuer selection, which is consistent with our investment approach. Our neutral beta policy contributed nothing to the month. Subsequently, all of the performance came from issuer selection. Notably, our overweight euro credits and underweight USD credits added nicely to the month.
Expectation of fund manager
Reinout Schapers
In our recent quarterly outlook, we observed a consensus shift towards a soft landing, a trend that continued in the last quarter. Many economists and strategists abandoned bearish views on the economy. Spread levels have fallen below major banks' 2024 projections. We argue that it remains wise to stay cautious in this environment. Although markets have fully embraced a goldilocks scenario, we think risks have not abated. History tells us that tightening cycles by central banks almost always lead to a recession. The early 90s were the exception when economies continued to do well in the years thereafter. The market is currently pricing in an optimistic scenario, with spreads experiencing significant movement, particularly in US credit markets approaching the bottom decile in valuations. Such a trend is typically observed after extended bull markets rather than in the current environment. We maintain a more neutral position, selectively taking bottom-up risks where risk-return is favorable. This includes a slightly long beta in investment grade and a conservative stance in high yield.