Robeco Financial Institutions Bonds 0D EUR
Investing in subordinated bonds issued by banks and insurance companies
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.
0D-EUR
0F-EUR
0I-EUR
B-EUR
BH-SGD
BH-USD
C-EUR
CH-USD
D-EUR
D2H-USD
D3H-USD
DH-USD
F-EUR
FH-USD
I-EUR
IB-EUR
IBH-USD
IH-CHF
IH-GBP
IH-JPY
IH-USD
M2-EUR
M2H-USD
M3-EUR
M3H-USD
MH-USD
Class and codes
Asset class:
Bonds
ISIN:
LU1171710608
Bloomberg:
RFIBODH LX
Index
Bloomberg Euro-Aggregate: Corp. Fin. Subordinated 2% Issuer Cap (EUR)
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
Morningstar
Morningstar
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Rating (31/10)
- Overview
- Performance & costs
- Portfolio
- Sustainability
- Commentary
- Documents
MISSING: fund.detail.tabs.
Key points
- A quality approach to investing in subordinated financials
- Strong focus on Tier 2 debt while exposure to CoCos is capped at 20%
- Experienced and stable investment team
About this fund
Robeco Financial Institutions Bonds is an actively managed fund that mainly invests in subordinated euro-denominated bonds issued by financial institutions. The selection of these bonds is based on fundamental analysis. The fund's objective is to provide long-term capital growth. The fund offers a diversified exposure to subordinated bonds issued by banks and insurance companies and the focus of the fund is, in general, towards higher rated issuers (investment grade).
Key facts
Total size of fund
€ 2,226,586,847
Size of share class
€ 11,949,953
Inception date share class
29-01-2015
1-year performance
12.96%
Dividend paying
No
Fund manager
Jan Willem de Moor
Jan Willem Knoll
Jan Willem de Moor is Portfolio Manager Investment Grade in the Credit team. Prior to joining Robeco in 2005, he worked at the Dutch Medical professionals’ pension fund as an Equity Portfolio Manager and at SNS Asset Management as an Equity Portfolio Manager. Jan Willem has been active in the industry since 1994. He holds a Master's in Economics from Tilburg University. Jan Willem Knoll is Portfolio Manager Investment Grade in the Credit team. He joined the Credit team in 2016. Previously, Jan Willem headed the Financials Equity sell-side research team at ABN AMRO. He started his career in the industry in 1999 at APG, where he held several positions including Portfolio Manager of a global insurance portfolio and subsequently a pan-European financials portfolio. Jan Willem holds a Master’s in Business Economics from the University of Groningen and he is a CFA® charterholder. 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.
Performance
Per period
Per annum
- Per period
- Per annum
1 month
0.07%
-0.12%
3 months
1.77%
2.08%
YTD
6.57%
6.86%
1 year
12.96%
12.92%
2 years
9.76%
9.48%
3 years
0.57%
0.46%
5 years
1.10%
0.98%
Since inception 01/2015
1.78%
2.44%
2023
9.96%
10.09%
2022
-13.28%
-13.94%
2021
0.44%
0.58%
2020
2.32%
2.56%
2019
8.86%
10.45%
2021-2023
-1.43%
-1.60%
2019-2023
1.30%
1.54%
Statistics
Statistics
Hit-ratio
Characteristics
- Statistics
- Hit-ratio
- Characteristics
Tracking error ex-post (%)
The ex-post tracking error is defined as the volatility of the fund's achieved excess return over the index return. In fund management, most managers are subject to an ex-ante (pre-determined) tracking error, which defines the extent of the additional risk they may take when aspiring to outperform the fund's benchmark. The ex-post tracking error explains the distribution of past fund performances compared to those of its underlying benchmark. With a higher tracking error, the fund's returns deviate more from its index's returns, hence there is a greater chance that the fund may outperform. The wider the spread of returns relative to the benchmark, the more "actively" a fund has been managed. In contrast, a low tracking error indicates more "passive" management.
1.35
1.32
Information ratio
This ratio serves to evaluate the quality of the excess return a fund manager has achieved because it takes the active risk involved into account. The information ratio is defined as the excess return over the benchmark return divided by the fund's tracking error. The higher the information ratio, the better. For example, a fund with a tracking error of 4% and an excess return of 2% over benchmark has an information ratio of 0.5, which is quite good.
0.83
0.86
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.
-0.08
0.13
Alpha (%)
Alpha measures the difference between a portfolio's actual return and its expected performance, given the level of risk, compared to the benchmark. A positive alpha figure indicates that the fund has performed better than expected, given the level of risk. Beta is used to calculate the level of risk compared to the benchmark..
1.15
1.15
Beta
Beta is a measure of a portfolio's volatility, or systematic risk, in comparison to the benchmark. A beta of 1 indicates that the portfolio will move with the benchmark. A beta of less than 1 means that the portfolio will be less volatile than the benchmark. A beta of more than 1 indicates that the portfolio will be more volatile than the benchmark. For example, if a portfolio's beta is 1.2 it is theoretically 20% more volatile than the benchmark.
1.01
1.06
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).
7.27
7.89
Max. monthly gain (%)
The maximum (i.e. highest) absolute positive monthly performance in the underlying period.
3.95
5.55
Max. monthly loss (%)
The maximum (i.e. highest) absolute negative monthly performance in the underlying period.
-5.27
-10.05
Months out performance
Number of months in which the fund outperformed the benchmark in the underlying period.
24
41
Hit ratio (%)
This percentage indicates the number of months in which the fund outperformed in a given period.
66.7
68.3
Months Bull market
Number of months of positive benchmark performance in the underlying period.
19
34
Months outperformance Bull
Number of months in which the fund outperformed positive benchmark performance in the underlying period.
13
25
Hit ratio Bull (%)
This percentage indicates the number of months the fund outperformed a positive benchmark in an underlying period.
68.4
73.5
Months Bear market
Number of months of negative benchmark performance in the underlying period.
17
26
Months outperformance Bear
Number of months in which the fund outperformed negative benchmark performance in the underlying period.
11
16
Hit ratio Bear (%)
This percentage indicates the number of months the fund outperformed a negative benchmark performance in an underlying period.
64.7
61.5
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.
BAA1/BAA2
BAA1/BAA2
Option Adjusted Modified Duration (years)
The interest rate sensitivity of the portfolio.
3.90
3.90
Maturity (years)
The average maturity of the securities in the portfolio.
4.80
4.40
Green Bonds (%)
The percentage of total AuM in the portfolio (market-weight based) that is indicated as Green Bond in Bloomberg. Green bonds are any type of regular bond instrument for which the proceeds will be applied exclusively to environmental projects.
8.00
8.90
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.
1.02%
Included management fee
A fee paid by the fund to the asset management company for the professional management of the fund.
0.80%
Included service fee
This fee is intended to cover official fees, such as the cost of annual reports, annual shareholders' meetings and price publications.
0.16%
Transaction costs
The transaction costs shown are the average annual transaction costs over the last three years calculated in accordance with European regulations.
0.06%
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.
Fund allocation
Country
Currency
Duration
Rating
Sector
Subordination
Top 10
- Country
- Currency
- Duration
- Rating
- Sector
- Subordination
- Top 10
Policies
All currency risks are hedged into the euro. Derivatives are used to lower interest rate sensitivity and can also be used for various other reasons, for instance for hedging single positions, for arbitrage, and for leverage to gain extra exposure to the credit market.
Robeco Financial Institutions Bonds fund make use of derivatives for hedging purposes as well as for investment purposes. These derivatives are very liquid.
This share class of the fund does not distribute dividend.
Robeco Financial Institutions Bonds is an actively managed fund that mainly invests in subordinated euro-denominated bonds issued by financial institutions. The selection of these bonds is based on fundamental analysis. The fund's objective is to provide long-term capital growth. The fund offers a diversified exposure to subordinated bonds issued by banks and insurance companies and the focus of the fund is, in general, towards higher rated issuers (investment grade). 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 Sub-fund is actively managed and uses the Benchmark for asset allocation purposes. However, although securities may be components of the Benchmark, securities outside the Benchmark may be selected too. The Sub-fund can deviate substantially from the weightings of the Benchmark. The Management Company has discretion over the composition of the portfolio subject to the investment objectives. The Sub-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 environmental, social and governance characteristics promoted by the Sub-fund.
Risk management is fully embedded in the investment process to ensure that positions always meet predefined guidelines.
Sustainability-related disclosures
Sustainability profile
ESG Important Information
The sustainability information below can help investors integrate sustainability considerations in their process. This information is for informational purposes only. The reported sustainability information may not at all be used in relation to binding elements for this fund. A decision to invest should take into account all characteristics or objectives of the fund as described in the prospectus.
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.The following sections display the ESG-metrics for this fund along with short descriptions. For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on Bloomberg Euro-Aggregate: Corp. Fin. Subordinated 2% Issuer Cap (EUR).
Market development
October showed a strong rise in government bond yields, most visible in the US. The month started with a payroll report in the US that was significantly stronger than expected by markets. Both US CPI and the first estimate of Q3 GDP growth were also above expectations. Adding to the upward pressure on yields were rising chances of a potential presidential return for Trump, whose tax-cutting plans and pro-tariff policies could heighten inflation and increase government bond supply. Government bond yields in Europe rose too, though not to the same extent as in the US. Credit spreads nevertheless performed well during October, one reason for the good performance was a sharp decline in the volume of new issues, after a very busy month of September. Banks that did issue in October were Svenska Handelsbanken and Erste Bank. Another reason for the decline in corporate bond spreads (as measured over German Bunds) is the strong decline in European swap spreads in October. Several drivers can be mentioned for the tightening of swap spreads, like increased issuance of government bonds and the reduction of the size of the balance sheet by the ECB.
Performance explanation
Based on transaction prices, the fund's return was 0.07%. The positive return was driven by a tightening of credit spreads. The average index spread ended the month at 171 basis points, 14 basis points lower than at the end of September. The index excess return of subordinated bonds over underlying government bonds was positive, at 0.79%. Underlying government bond yields rose in October, which had a negative impact on the market return. The performance of the underlying portfolio, measured gross of fees, was better than that of the index. The beta overweight position contributed positively, as did issuer selection. Positive drivers within issuer selection were the underweight in real estate hybrids, the overweight in BB-rated bonds and individual name selection. Individual positions that contributed most to the performance were the underweights in Aroundtown and Grand City and the overweights in Monte dei Paschi, Heimstaden, Achmea and AXA. The largest detractors from the performance were the underweight in Generali and the overweights in ABN AMRO and Barclays.
Expectation of fund manager
Jan Willem de Moor
Jan Willem Knoll
Credit spreads for European bank and insurance companies are still relatively attractive, especially when compared to the US credit market or the high yield market. At the same time, the financial sector is doing very well. Balance sheets look robust after years of deleveraging and cyclically, the sector is benefiting from higher interest rates. Going forward, we do not expect a further improvement in bank profitability, as short-term interest rates have peaked and will gradually go down again. As it is unlikely that we will move back to a negative interest rate environment, we expect profitability to remain healthy. Appetite for bonds with higher yields is still strong, as investors like to lock in current attractive yield levels. In the last weeks, a large number of bank CoCos has been issued and order books for those deals were again large. As spreads have tightened significantly in the past year, we are becoming more selective in participating in new bond issues. We continue to target an overweight beta positioning in the fund, as we see plenty of opportunities to buy bonds at attractive levels, in primary or secondary markets.