Robeco High Yield Bonds Feeder Fund - zero duration DH EUR
- Managed with a conservative approach
- Disciplined and repeatable investment process
- Experienced team management
About this fund
Price development
Price development
Performance
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundPerformances.date,'llll') ]}}| Fund | Index | |
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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 0.27%. The global high yield market delivered a total return of around 0.4%, on the back of stable spreads. Rates in the US in 5-year and 10-year Treasuries moved up by 7 and 17 bps respectively, while the German 10-year Bunds yield edged higher by 6 bps during the month. The fund underperformed the index by around 20 bps during January, which can be equally attributed to our underweight beta and issuer selection. The other performance drivers showed mixed results. The overweight in Euro high yield versus the underweight in US high yield made a flat contribution. The allocation over ratings added 3 bps for the month. At the sector level, all major sectors had positive total returns, except for transportation sector in Europe. Across both sides of the ocean, metals & mining, retailers and airlines delivered total returns in the range of 1.35-4%. The best-performing sector in absolute terms was again the oil field service sector in the US, delivering 6% for the month. On an issuer level, the fund benefited from a large overweight in Netflix, which was upgraded by S&P to BB+ with a positive outlook on the back of strong results. This added 4 bps to our relative performance.
Statistics
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| Fund | Reference index | ||
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Market development
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundInvestmentExplanations.date,'llll') ]}}January was characterized by stable spreads and total returns close to zero. In hindsight not a bad result given the equity market volatility, a super active primary market and steep outflows. The equity volatility index, VIX, spiked to a high on the back of a number of heavily shorted shares, such as GameStop and AMC Entertainment. The earnings season started, with on average better-than-expected results. President Joe Biden was inaugurated without any meaningful riots and capital markets anxiously awaited further fiscal stimulus packages. Some disappointments on vaccine deliveries did not really impact the credit markets. Primary activity was very strong, with over USD 51 billion of new deals in the US and close to EUR 13 billion in Europe. This is the most active January on record for gross issuance. On average, January has brought in around USD 30 billion of new deals since 2010. Mutual funds and ETFs reported almost USD 4 billion of outflows for the month. A record low index yield has led to some profit taking. The average yield to worst for the global high yield index widened a bit and ended the month at 4.05%; global high yield spreads finished the month unchanged at a level of 362 bps.
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 | ||
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| Voting | ||||
| Engagement | ||||
| ESG integration | ||||
| Exclusion |
| Yes | No | N/A | ||
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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
The fund does not distribute dividend.
ESG Integration policy
Our analysis of issuers goes beyond the traditional financial factors and includes the issuers’ performance on ESG factors. We deem it essential for a well-informed investment decision to take into account those ESG factors that have the potential to materially impact the financial performance of the issuer. This perfectly matches the basic need to avoid the losers in credit management, as many credit events in the past can be attributed to issues such as poorly designed governance frameworks, environmental issues, or weak health & safety standards. The aim of ESG integration is to improve the risk/return profile of the investments and does not have an impact goal. ESG analysis is fully integrated in the bottom-up security analysis. We have defined key ESG factors per industry, and for every company we analyze how the firm is positioned versus these key ESG factors, and how this impacts the fundamental credit quality.
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 (hedged to USD) of Robeco Capital Growth Funds SICAV – Robeco High Yield 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 is an actively managed fund that invests in corporate bonds with a sub-investment grade rating, issued primarily by issuers from developed markets (Europe/US). The Master aims to outperform the benchmark (Bloomberg Barclays US Corp. HY & Pan Eur. HY. ex Fin. 2.5% Issuer Cap) by taking positions that deviate from the benchmark. The selection of the bonds is based on fundamental analysis. The portfolio is broadly diversified, with a structural bias to the higher rated part in high yield. Performance drivers are the top-down beta positioning as well as bottom-up issuer selection. The Feeder Fund uses derivatives to hedge the interest rate risk of the Master. This 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.
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') ]}}Fundamentally, we have seen the fastest drop in economic activity in seventy years. Spreads reached very substantial levels and the US high yield default rate reached 8%. Thanks to a well-coordinated series of policy actions by fiscal and monetary authorities, a recovery set in quickly. Most key potentially negative events have been priced out by the markets. From Covid-19 to the US elections and a default cycle, we have had it all in the shortest credit cycle ever. The possible variation in economic and technical outcomes is large. In order for credit markets to keep rallying, we need a flawless situation on the political front, no monetary mistakes, no substantial rate volatility, a further earnings recovery, and certainly no fatigue in fiscal stimulus. In short, simply the best set of pathways justifies current valuations. The year will be either boring or bearish. There is hardly any room for aggressive tightening. At best, we will see some carry, roll down and certain sectors recovering from Covid-19. We still find value in pockets of the market in individual situations. The big beta play is done though; it is back to stock selection and being more cautious.
Sander Bus, Roeland Moraal
Mr. Bus is Head of the Credit team and manages our high yield portfolios. Prior to joining Robeco in 1998, Mr. Bus worked for Rabobank as a fixed income analyst for two years. Mr. Bus holds a Master's degree in Financial Economics from Erasmus University, Rotterdam. He became a CFA charter holder in 2003 and is registered with the Dutch Securities Institute. Mr. Bus has been active in the industry since 1996. Mr. Roeland Moraal, Vice President, CEFA, Portfolio Manager. Roeland is a Senior Portfolio Manager High Yield within Robeco's Credit team since January 2004. Before assuming this role, he was portfolio manager in our Rates team for two years and worked as an analyst with the Institute for Research and Investment Services for three years. Roeland started his career in the investment industry in 1997 at Robeco. He holds a Master's degree in applied mathematics from the University of Twente and a Master's degree in Law from Erasmus University, Rotterdam. Roeland became a CEFA charter holder in 2000 and he is registered with the Dutch Securities Institute.
Team
The Robeco High Yield fund is managed within Robeco’s credit team, which consists of nine portfolio managers and twenty-three credit 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 three dedicated quantitative researchers and four 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 | LU1840770512 |
| Bloomberg | ROHYDHE LX |
| Valoren | 42285682 |
| WKN | A2PP2E |
| Availability | |
| 1st quotation date | 1530144000000 |
| Close financial year | 31-12 |
| Legal status | |
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Cost of this fund
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Extra fees
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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.
