RobecoSAM SDG High Yield Bonds IEH GBP
- Uses a proprietary SDG measurement framework to select companies that contribute positively to the SDGs, excludes those that do the opposite.
- Managed with a conservative approach by an experienced team
- Disciplined and repeatable investment process
About this fund
Price development
Performance
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundPerformances.date,'llll') ]}}| Fund | Index | |
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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 0.02%. 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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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') ]}}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
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| Voting | ||||
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| Exclusion |
| Yes | No | N/A | ||
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| Sustainability Themed Fund |
Currency policy
All currency risks are hedged.
Derivative policy
RobecoSAM SDG High Yield Bonds make use of derivatives for hedging purposes as well as for investment purposes. These derivatives are liquid.
Dividend policy
In principle, the fund will distribute dividend annually.
ESG Integration policy
In the RobecoSAM SDG High Yield strategy we look for investments with a positive societal impact, whilst generating healthy financial returns. We define impact as an alignment with the UN Sustainable Development Goals (SDGs). We identify and evaluate the impact that specific credits have on the SDGs, and score all the issuers under coverage of the analyst team. These scores categorize credits as having either a Positive, Neutral, or Negative impact on the SDGs. The scores are then used in a screening process, to define the investable universe that exclude credits with a Negative impact on the SDGs. In addition to the universe screening, our credit analysts integrate ESG factors in their analysis of the companies fundamental credit quality.
Investment policy
RobecoSAM SDG High Yield Bonds invests in a diversified portfolio of global corporate bonds with a sub-investment grade rating, with a structural bias to the higher rated part in high yield. The selection of these bonds is based on fundamental analysis. The fund applies a screening process, using RobecoSAM’s SDG framework, to select issuers that contribute to realizing the UN Sustainable Development Goals (SDGs). The fund excludes companies that contribute negatively to these goals. RobecoSAM’s SDG framework scores companies based on the magnitude and quality of their contributions to the SDGs through their products, services and operations. Engagement, ESG integration and RobecoSAM's exclusion policy also form part of the investment policy. The fund aims to outperform the Bloomberg Barclays Global High Yield Corporate Index over a full credit cycle. The investment process is based on a top-down analysis of credit markets, combined with thorough bottom-up issuer selection. The investment philosophy is based on contribution to the SDGs but also deliver attractive financial returns for our investors. RobecoSAM SDG High Yield Bonds is managed within our credit team which consists of ten portfolio managers and twenty-two credit analysts. Within the team, Sander Bus, Roeland Moraal and Christiaan Lever are responsible for high yield. Sander has been involved in the mainstream fund since inception in 1998, Roeland joined in 2003. The portfolio managers are responsible for the construction and management of the credit portfolios, whereas the analysts cover the team's fundamental research. The duration of the portfolio is managed in line with the index and currency exposure is hedged. A proprietary in-house developed risk management approach avoids high risk concentration in the portfolio. Holdings in equities can only appear in the portfolio as a result of corporate actions and/or debt restructuring. It is not the intention of the portfolio manager to use options or swaptions. As the investment process is well-structured and proven over time, it contributes to repeatable performance delivery.
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, Christiaan Lever
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. Christiaan Lever is Portfolio Manager High Yield in the Credit team. Before assuming this role in 2016, he was Financial Risk Manager at Robeco, focusing on market risk, counterparty risk and liquidity risk within fixed Income markets. Christiaan has been active in the industry since 2010. He holds a Master's in Quantitative Finance and in Econometrics from Erasmus University Rotterdam.
Team
RobecoSAM SDG High Yield Bonds 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 | |
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| ISIN | LU2061804634 |
| Bloomberg | RHYIEHG LX |
| Valoren | 50778565 |
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| 1st quotation date | 1571702400000 |
| Close financial year | 31-12 |
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Cost of this fund
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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 0.01% 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.
