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Robeco Corporate Hybrid Bonds IH USD

Investing in the corporate hybrids of investment grade non-financials

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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-USD

CH-EUR

IH-EUR

Class and codes

Asset class:

Bonds

ISIN:

LU1874124479

Bloomberg:

ROCHIHU LX

Index

Bloomberg Global Corporate Hybrids 3% Issuer Cap

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
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Fund topics

Overview
Performance & costs
Portfolio
Sustainability
Commentary
Documents
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MISSING: fund.detail.tabs.

Key points

  • Investing in subordinated bonds with a high yield, issued by non-financial companies with an investment grade rating.
  • Corporate hybrids offer attractive valuations within fixed income.
  • Corporate hybrids have developed into a mature, standardized and diversified asset class.

About this fund

Robeco Corporate Hybrid Bonds is an actively managed fund that invests in global corporate hybrids bonds issued by nonfinancials. The selection of these bonds is based on fundamental analysis. The fund's objective is to provide long-term capital growth. Corporate hybrids are deeply subordinated bonds with equity-like features. The bonds are mainly issued by investment grade issuers. The fund selects the best-in-class hybrid bonds, with the best risk-return characteristics.

Key facts

Per 31-10-2023

Total size of fund

$ 266,379,195

Size of share class

$ 2,111,771

Inception date share class

18-09-2018

1-year performance

8.80%

Dividend paying

No

The value of the investments may fluctuate. Past performance is no guarantee of future results.
Performances are net of fees and based on transaction prices.

Fund manager

Daniel Ender

Daniel Ender

Peter Kwaak

Peter Kwaak

Peter Kwaak is Portfolio Manager Investment Grade in the Credit team. Prior to joining Robeco in 2005, he was Portfolio Manager Credits at Aegon Asset Management for three years and at NIB Capital for two years. Peter has been active in the industry since 1998. He holds a Master’s in Economics from Erasmus University Rotterdam and he is a CFA® charterholder. The Robeco Corporate Hybrid Bonds 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.

Key points
About the fund
Key facts
Fund manager

Performance

Per period

Per annum

  • Per period
  • Per annum
Per 31-10-2023
Per period Fund Index

1 month

-0.23%

-0.23%

3 months 

-0.23%

0.04%

YTD

4.67%

5.12%

1 year

8.80%

8.69%

2 years

-2.58%

-2.26%

3 years

-0.05%

0.35%

5 years

2.89%

3.07%

Since inception 09/2018

2.73%

2.81%

The value of the investments may fluctuate. Past performance is no guarantee of future results.
Annualized (for periods longer than one year).
Performances are net of fees and based on transaction prices.
Per annum Fund Index

2022

-9.29%

-9.34%

2021

1.43%

2.63%

2020

5.79%

5.37%

2019

15.27%

14.74%

2020-2022

-0.90%

-0.66%

The value of the investments may fluctuate. Past performance is no guarantee of future results.
Annualized (for periods longer than one year).
Performances are net of fees and based on transaction prices.

Statistics

Statistics

Hit-ratio

Characteristics

  • Statistics
  • Hit-ratio
  • Characteristics
Per 31-10-2023
Statistics 3 years 5 Years

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.

1.30

1.63

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.

0.22

0.23

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.

-0.25

0.18

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..

0.54

0.23

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.

1.12

1.17

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).

6.37

8.14

Max. monthly gain (%)

The maximum (i.e. highest) absolute positive monthly performance in the underlying period.

3.72

7.35

Max. monthly loss (%)

The maximum (i.e. highest) absolute negative monthly performance in the underlying period.

-5.56

-10.69

Hit-ratio 3 years 5 Years

Months out performance

Number of months in which the fund outperformed the benchmark in the underlying period.

18

30

Hit ratio (%)

This percentage indicates the number of months in which the fund outperformed in a given period.

50

50

Months Bull market

Number of months of positive benchmark performance in the underlying period.

20

39

Months outperformance Bull

Number of months in which the fund outperformed positive benchmark performance in the underlying period.

11

21

Hit ratio Bull (%)

This percentage indicates the number of months the fund outperformed a positive benchmark in an underlying period.

55

53.8

Months Bear market

Number of months of negative benchmark performance in the underlying period.

16

21

Months outperformance Bear

Number of months in which the fund outperformed negative benchmark performance in the underlying period.

7

9

Hit ratio Bear (%)

This percentage indicates the number of months the fund outperformed a negative benchmark performance in an underlying period.

43.8

42.9

Characteristics Fund Index

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

BAA2/BAA3

Option Adjusted Modified Duration (years)

The interest rate sensitivity of the portfolio.

3.10

3.10

Maturity (years)

The average maturity of the securities in the portfolio.

3.70

4.00

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.

5.40

10.90

Above mentioned ratios are based on gross of fees returns.

Costs

Per 31-10-2023
Cost of this fund Percentage

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.

0.56%

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.

0.01%

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.

Performance
Price development
Statistics
Cost of this fund
Fiscal: product
Fiscal: investor

Fund allocation

Currency

Duration

Rating

Sector

Subordination

Top 10

  • Currency
  • Duration
  • Rating
  • Sector
  • Subordination
  • Top 10
Per 31-10-2023
In risk terms, the fund has a significant overweight in euro-denominated hybrids, partly offset by an underweight position in US dollar hybrids. The underweight position in GBP (pound sterling) denominated hybrids is relatively small, as GBP bonds are small in the global hybrid benchmark. Currency positions are hedged, as the fund does not take active currency risks. In terms of credit beta (duration x spread), the portfolio remained overweight at the end of the month.

Policies

  • All currency risks are hedged.

  • Robeco Corporate Hybrid bonds make use of derivatives for hedging purposes as well as for investment purposes. These derivatives are very liquid.

  • This share class of the fund will not distribute a dividend.

  • Robeco Corporate Hybrid Bonds is an actively managed fund that invests in global corporate hybrids bonds issued by nonfinancials. The selection of these bonds is based on fundamental analysis. The fund's objective is to provide long-term capital growth. 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. Corporate hybrids are deeply subordinated bonds with equity-like features. The bonds are mainly issued by investment grade issuers. The fund selects the best-in-class hybrid bonds, with the best risk-return characteristics. The majority of bonds selected will be components of the benchmark, but bonds outside the benchmark may be selected too. The fund can deviate substantially from the weightings of the benchmark. The fund aims to outperform the benchmark over the long run, while still controlling relative risk through the application of limits (on currencies and issuers) to the extent of the 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.

Fund allocation
Policies

Sustainability-related disclosures

  • Summary sustainability-related disclosures
  • Full sustainability-related disclosures

Sustainability profile

Per 31-10-2023
Exclusions
ESG Integration
Engagement

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

Per 31-10-2023

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 Global Corporate Hybrids 3% Issuer Cap.

Sustainability-related disclosures
Profile
ESG Important Information
Sustainability
Sustainability metrics

Market development

Per 31-10-2023

The Global Corporate Hybrids Index posted a total return of -0.36% last month (EUR hedged). The index widened by 13 basis points, reaching a level of 254 basis points. The main catalyst for the risk-off sentiment was the conflict in the Middle East initiated by the attack carried out by Hamas on Israel on 7 October. The event raised concerns about a broader conflict, leading to increased prices for commodities such as oil and gold during the month. Most companies reported decent quarterly earnings, although many companies reported that economic activity is decelerating. In the US, GDP increased due to healthy consumer spending. Labor markets in the US continue to be strong and employment costs continued to rise. On top of that, investors are concerned about the US funding gap, debt ceiling discussions and new House speaker Mike Johnson. Treasury yields continued to rise. In Europe, macro data was weaker, with Q3 GDP showing a minor contraction. On a positive note, Eurozone inflation data dropped to a 2-year low. In Japan, the BoJ made only minor changes to its policy settings, leading to a weaker yen.

Performance explanation

Per 31-10-2023

Based on transaction prices, the fund's return was -0.23%. The underlying portfolio outperformed its benchmark index, gross of fees. Relative performance is attributed to beta positioning and issuer selection, in line with our investment process. Beta positioning contributed to most of this month's outperformance, as beta was well above one during the month, while spreads tightened meaningfully. At the issuer level, the large overweight positions in EDF and BHP Billiton made positive contributions. We also benefited from being underweight in names such as Adecco Group, Sempra Energy and Dominion Energy. These gains were partially offset by negative contributions from overweights in TC Energy Corp and Southern Co.

Expectation of fund manager

Daniel Ender

Daniel Ender

Peter Kwaak

Peter Kwaak

We aim for a portfolio beta above one in corporate hybrids. Spreads had recovered from the very wide levels seen last year, but the weakness in the financial sector led to higher spread levels again. Current yield levels at 6-7% look very attractive, for investment-grade corporate issuers. Corporate hybrids offer a significant yield pickup and are issued by large, high-quality companies. These investment-grade issuers are well positioned to handle any slowdown in economic growth, given their size and diversification.

Market development
Performance explanation
Expectation of fund manager

Fund documents

  • Factsheet
  • Prospectus
  • Full sustainability-related disclosures
  • Summary sustainability-related disclosures

(Semi) annual reports

  • Annual report 2022
  • Annual report 2021
  • Annual report 2020
  • Semi-annual report 2023
  • Semi-annual report 2022
  • Semi-annual report 2021

Announcements

  • Prospectus change December 2023 (17-11-2023)
  • Dividend dates (05-09-2023)
  • Publication semi-annual reports 2023 (31-08-2023)
  • Prospectus change September 2023 (04-08-2023)
  • Publication Semi-annual reports 2022 (31-08-2022)
Fund documents
Reports
Announcements

Important information

Past performance is no indication of current or future performance. This is not a buy, sell or hold recommendation for any particular security. No representation is made that these examples are past or current recommendations, that they should be bought or sold, nor whether they were successful or not.​

Any opinion or estimate contained in this website is made on a general basis and is not to be relied on by the reader as advice. Robeco reserves the right to make changes and corrections to its opinions expressed here, this website and the associated materials and links at any time, without notice.

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Investment involves risks. Past performance is not indicative of future performance. This information is for informational purposes only and should not be construed as an offer to sell or an invitation to buy any securities or products, nor as investment advice or recommendation. The contents of this document have not been reviewed by the Monetary Authority of Singapore (“MAS”). Robeco Singapore Private Limited holds a capital markets services licence for fund management issued by the MAS and is subject to certain clientele restrictions under such licence. An investment will involve a high degree of risk, and you should consider carefully whether an investment is suitable for you.