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Robeco Transition Emerging Credits IH CHF
Finding alpha in opportunities that support the sustainable transition in Emerging Markets
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-CHF
BXH-USD
D-USD
D3-USD
FH-EUR
I-USD
IBX-USD
M-USD
M3-USD
Z-USD
ZH-EUR
Class and codes
Asset class:
Bonds
ISIN:
LU2539431903
Bloomberg:
REMCIHC LX
Index
JPM CEMBI Broad Diversified (hedged into CHF)
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
- Contrarian and unconstrained investing in entities that are leading or enabling the sustainability transition in Emerging Markets
- Leveraging on Robeco proprietary sustainability research and IP with a strong track record in Emerging Markets fixed income
- Enables investors to tap into the potential growth of the transition from both financial and sustainability perspectives
About this fund
Robeco Transition Emerging Credits is an actively managed fund that invests in corporate bonds in emerging markets. The selection of these bonds is based on fundamental analysis. The fund's objective is to provide long-term capital growth. The fund has the flexibility to invest in value opportunities beyond the index universe, which means that the fund comprises both local currency and hard currency debt. The Sub-fund aims to make investments in assets with a sustainable objective as well as investments in assets that contribute to a transition. Transition pertains to activities that measurably and credibly contribute to the goals of the Paris Agreement and/or an environmental and/or social objective. This is achieved by investing in entities that have credible emission reduction targets, entities that provide solutions to enable climate change mitigation and bonds to finance sustainability transformation or refinance, in part or in full, new and/or existing projects with an environmental and/or social objective. Companies are selected based on their exposure rather than their location, and sometimes sovereign exposure is chosen over credit exposure. In-depth, company-specific analysis and country analysis are important pillars in the investment process.
Key facts
Total size of fund
CHF 181,566,203
Size of share class
CHF 21,118,880
Inception date share class
18-10-2022
1-year performance
2.87%
Dividend paying
No
Fund manager
![Reinout Schapers](https://images.ctfassets.net/tl4x668xzide/5D4ZatdUOpW8CSN3tsnTRW/6acd035b33f7fb9ed23bcc91ada96d70/reinout-schapers-500px.jpg?fit=fill&w=162&h=162&f=center&fm=webp)
Reinout Schapers
![Christiaan Lever](https://images.ctfassets.net/tl4x668xzide/5QU9cns6B2AmdWPHv5KiFS/c9a1bdd1b9662a12a77892a6b82f5de0/christiaan-lever-500x500px.jpg?fit=fill&w=162&h=162&f=center&fm=webp)
Christiaan Lever
![Thu Ha Chow](https://images.ctfassets.net/tl4x668xzide/6fqLNqN2ETaw809VhDmrQv/fd2a7067c33745b017735ed77d5b3b24/thu-ha-500px.jpg?fit=fill&w=162&h=162&f=center&fm=webp)
Thu Ha Chow
![Frank Reynaerts](https://images.ctfassets.net/tl4x668xzide/3DeIdMqFqSED9an1t1gOcK/a8812b256a4595c34a2da44033fb1f2f/frank-reynaerts-500px.jpg?fit=fill&w=162&h=162&f=center&fm=webp)
Frank Reynaerts
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. Christiaan Lever is Portfolio Manager High Yield and Emerging Credits 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. Based in Singapore, Thu Ha Chow is Head of Fixed Income Asia and Portfolio Manager with a focus on Asian credits. Prior to joining Robeco in 2022, she was Portfolio Manager and Asia Strategist at Loomis Sayles & Co and Head of Asian Credit at Aberdeen Asset Management, both in Singapore. Previously Thu Ha worked for 15 years in London where she held senior fixed income positions at Deutsche Asset Management and Threadneedle Asset Management in addition to 3 years in investment banking at Credit Suisse First Boston. She started her career in 1998 after obtaining a Master’s in Economics and Philosophy from London School of Economics. Frank Reynaerts is an Emerging Credit Analyst and Portfolio Manager of the Transition Asian Bonds strategy. Frank joined Robeco in 2011 as a Portfolio Manager Emerging Debt. Prior to that, he was Portfolio Manager Investment Grade Credits at Syntrus Achmea, Portfolio Manager Emerging Debt at Lombard Odier and Portfolio Manager Fixed Income at Fortis. Frank started his career in 1997 at ASLK Bank as a Risk Analyst. He holds a Master’s in Commercial and Financial Sciences from EHSAL Business School of Brussels and he is a CFA® charterholder. The Robeco Transition Emerging Credits fund is managed within Robeco's credit team, which consists of eight portfolio managers and twelve credit analysts (of which four cover the financial sector). 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 sixteen years, of which eight years with Robeco.
Performance
Per period
Per annum
- Per period
- Per annum
1 month
0.37%
0.61%
3 months
0.09%
0.43%
YTD
1.14%
1.82%
1 year
2.87%
4.87%
Since inception 10/2022
5.63%
6.69%
2023
3.44%
4.50%
Statistics
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.
BAA2/BAA3
BAA3/BA1
Option Adjusted Modified Duration (years)
The interest rate sensitivity of the portfolio.
4.10
4.00
Maturity (years)
The average maturity of the securities in the portfolio.
5.50
5.70
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.
16.80
6.40
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.
0.74%
Included management fee
A fee paid by the fund to the asset management company for the professional management of the fund.
0.60%
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.
0.10%
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
Derivatives can be used for various reasons; for example, to hedge single positions, for arbitrage, and for leverage to gain extra exposure to the credit market.
The fund does not distribute a dividend. The income earned by the fund is reflected in its share price. This means that the fund's total performance is reflected in its share price performance.
Robeco Transition Emerging Credits is an actively managed fund that invests in corporate bonds in emerging markets. The selection of these bonds is based on fundamental analysis. The fund's objective is to provide long-term capital growth. The fund has the flexibility to invest in value opportunities beyond the index universe, which means that the fund comprises both local currency and hard currency debt. The Sub-fund aims to make investments in assets with a sustainable objective as well as investments in assets that contribute to a transition. Transition pertains to activities that measurably and credibly contribute to the goals of the Paris Agreement and/or an environmental and/or social objective. This is achieved by investing in entities that have credible emission reduction targets, entities that provide solutions to enable climate change mitigation and bonds to finance sustainability transformation or refinance, in part or in full, new and/or existing projects with an environmental and/or social objective. Companies are selected based on their exposure rather than their location, and sometimes sovereign exposure is chosen over credit exposure. In-depth, company-specific analysis and country analysis are important pillars in the investment process. 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. 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 VaR Ratio) 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
Sustainability is incorporated in the investment process by the means of a target universe, exclusions, ESG integration, and a minimum allocation to ESG-labeled bonds. The fund invests in credits issued by companies with a positive or neutral impact on the SDGs. The impact of issuers on the SDGs is determined by applying Robeco's internally developed three-step SDG Framework. The outcome is quantified with a proprietary SDG score methodology, considering both the contribution to the SDGs (positive, neutral or negative) and the extent of this contribution (high, medium or low). At least 50% of the fund is invested in Transition-related Investments contributing to the goals of the Paris Agreement and/or Transition-related Investments with an Environmental and/or Social objective. This is determined through Robeco’s Paris Alignment Assessment, which evaluates companies using a Climate Traffic light. In addition, 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. Furthermore, the fund invests at least 15% in green, social, sustainable, and/or sustainability-linked bonds. The fund limits exposure to elevated sustainability risks. Lastly, where a credit issuer is flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to exclusion.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 JPM CEMBI Broad Diversified (hedged into CHF).
Market development
In June, the performance of EM credit was positive at 0.93% with investment grade and high yield segments posting total returns of 0.88% and 1.00% respectively. US treasury yields were the main driver of total returns, as they ended the month lower. The slowest US core inflation since August 2021 reinforced expectations for future rate cuts despite resilience in the labor market. In Europe, the ECB lowered the deposit rate by 25 bps to 3.75%, its first cut since the pandemic. China's macro data continues to show a cyclical bottoming, and economists have upgraded GDP forecasts. There are signs that government stimulus is stabilizing the economy and even the property sector shows tentative signs of stabilization. Also, the State Council announced new property easing measures to kickstart the housing market. At the same time, risk appetite remains unphased by renewed geopolitical tensions in Europe, Middle East and Asia. Relatively low issuance compared to developed markets remains a supportive technical for EM, with still muted issuance in Asia, which only showed tentative signs to pick up.
Performance explanation
Based on transaction prices, the fund's return was 0.37%. The total return of the index was 0.93% for the month. The fund performance lagged the index. This month's beta contribution had a negative impact of 1 bps as the beta was just below 1 and excess returns were positive. Issuer selection made a negative contribution of 14 bps. Overweight positions like New World Development and Braskem added to performance while positions in BBVA Bancomer, First Quantum and Adani Green detracted from performance. Not holding issuers like Altice and Petrobras also contributed positively.
Expectation of fund manager
![Reinout Schapers](https://images.ctfassets.net/tl4x668xzide/5D4ZatdUOpW8CSN3tsnTRW/6acd035b33f7fb9ed23bcc91ada96d70/reinout-schapers-500px.jpg?fit=fill&w=162&h=162&f=center&fm=webp)
Reinout Schapers
![Christiaan Lever](https://images.ctfassets.net/tl4x668xzide/5QU9cns6B2AmdWPHv5KiFS/c9a1bdd1b9662a12a77892a6b82f5de0/christiaan-lever-500x500px.jpg?fit=fill&w=162&h=162&f=center&fm=webp)
Christiaan Lever
![Thu Ha Chow](https://images.ctfassets.net/tl4x668xzide/6fqLNqN2ETaw809VhDmrQv/fd2a7067c33745b017735ed77d5b3b24/thu-ha-500px.jpg?fit=fill&w=162&h=162&f=center&fm=webp)
Thu Ha Chow
![Frank Reynaerts](https://images.ctfassets.net/tl4x668xzide/3DeIdMqFqSED9an1t1gOcK/a8812b256a4595c34a2da44033fb1f2f/frank-reynaerts-500px.jpg?fit=fill&w=162&h=162&f=center&fm=webp)
Frank Reynaerts
In the current 'goldilocks' market, we advocate caution. Risks persist, and history shows central bank tightening often leads to recessions. The market may underestimate the long lag before rate hikes impact the economy. Technical factors support quality credit, with high all-in yields and limited issuance in EM. We are cautious toward countries like China and companies vulnerable to economic downturns and a stronger USD. The ideal credit scenario, falling inflation and likely recession avoidance, seems to be unfolding. Credit markets have priced in this narrative. Despite recognizing the high likelihood of this consensus scenario, we are aware of the fragility in sentiment and ever-present risks in a changing world order. With tight valuations and risk positioning, there is room for disappointment. The US economy has shown resilience, largely due to fiscal stimulus. However, the corporate sector's performance is mixed, with large-cap tech stocks recording profits, while the SME sector feels the pressure of higher rates.
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.