Robeco Corporate Hybrid bonds IH EUR
- 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
Price development
Performance
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundPerformances.date,'llll') ]}}| Fund | Reference index | |
|---|---|---|
| 1m | ||
| 3m | ||
| YTD | ||
| 1 year | ||
| 2 years | ||
| 3 years | ||
| 5 years | ||
| 10 years | ||
| {{'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 -0.87%. The total return of the fund was -0.96% this month, versus -1.14% for the index. As hybrids underperformed treasury bonds, the beta position made a neutral contribution to the fund’s return. The beta of the fund remained around one during the month. Issuer selection made a positive contribution to performance. The overweight in TransCanada and the underweight in GE (General Electric) were both positive drivers. Spreads on EDF and Enbridge widened significantly.
Statistics
{{'fund.detail.general.perDate' | labelize:[ fundDate( (fund.fundStatistics.date?fund.fundStatistics.date:fund.fundCharacteristics.date) ,'llll') ]}}| 3 years | 5 years | ||
|---|---|---|---|
| Standard deviation |
|
||
| Max. monthly gain (%) |
|
||
| Tracking error ex-post (%) |
|
||
| Alpha | |||
| Beta |
|
||
| Sharpe ratio | |||
| Information ratio | |||
| Max. monthly loss (%) |
|
| 3 years | 5 years | ||
|---|---|---|---|
| Hit ratio (%) | |||
| Hit ratio Bear (%) | |||
| Hit ratio Bull (%) | |||
| Months Bear market | |||
| Months Bull market | |||
| Months outperformance | |||
| Months outperformance Bear | |||
| Months outperformance Bull |
| Fund | Reference index | ||
|---|---|---|---|
| Option Adjusted Modified Duration (years) | |||
| Maturity (years) | |||
| Rating | |||
| Yield to Worst (%) |
Market development
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundInvestmentExplanations.date,'llll') ]}}The Global Corporate Hybrids Index delivered a total return of -1.14% this month. The average spread on the index widened 29 basis points to 260 bps at the end of the month. As a result, corporate hybrids underperformed treasuries with an excess return of -1.34%.October was not a good month for risky assets, with equity markets selling off quite substantially and US high yield bond spreads widening some 60 bps. Investment grade markets were under pressure as investors dealt with fund outflows and several profit warnings in the automotive sector. Italy remained a cause for concern. Its 2019 budget deficit of -2.4% was rejected by the European Commission. Global trade tensions continued to depress market sentiment. In the Eurozone, the underperformance of the export-oriented manufacturing sector relative to the services sector seems closely linked to weakening global trade. Export orders fell in Germany in September, and flash PMI data in October showed declines in manufacturing and services. The ECB also mentioned external risks, but sticked to its inflation outlook and still anticipates the end of its bond purchase program in December.
Fund allocation
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundAllocations.date,'llll') ]}}| Name | Sector | Weight |
|---|---|---|
Fund Classification
| Yes | No | N/A | ||
|---|---|---|---|---|
| Voting | ||||
| Engagement | ||||
| ESG integration | ||||
| Exclusion |
| Yes | No | N/A | ||
|---|---|---|---|---|
| Screening | ||||
| Integration | ||||
| Sustainability Themed Fund |
Currency policy
All currency risks are hedged.
Derivative policy
Robeco Corporate Hybrid bonds make use of derivatives for hedging purposes as well as for investment purposes. These derivatives are very liquid.
Dividend policy
This share class of the fund will not distribute a dividend.
ESG Integration policy
The prime goal of integrating ESG factors in our analysis is to strengthen our ability to assess the downside risk of our credit investments. Our analysts include RobecoSAM sustainability data and use external sources to make an ESG assessment as a part of the fundamental analysis.
Investment policy
Robeco Corporate Hybrid Bonds invests in corporate hybrid bonds issued by non-financials. Corporate hybrids are subordinated bonds, which rank between debt and equity in a company’s capital structure. The fund selects the best in class hybrids bonds, with the best risk-return characteristics. Corporate hybrids are mainly issued by investment grade issuers. The aim of the fund is to provide long term capital growth by investments in corporate hybrids bonds. The fund aims to outperform its benchmark: Bloomberg Barclays Global Corporate Hybrids 3% Issuer Cap. The investment philosophy is based on managing a solid portfolio with a long term view. Top-down beta positioning is based on the outcome of our credit quarterly outlook meeting, in which the team is discussing the fundamental market outlook, valuation of bond markets and market technicals. Bottom-up issuer research is executed by our credit analysts, who execute the fundamental analysis. The portfolio managers are responsible for the portfolio construction. A proprietary developed risk management approach avoids high risk concentration in the portfolio. Duration of the portfolio is managed in line with the index and currency exposure is hedged.
Risk policy
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.
Expectation of fund manager
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundFacts.date,'llll') ]}}We remain positive on corporate hybrids, therefore we keep the fund’s beta at or above one. Given the search for yield and the attractive valuation of hybrids versus other credit sectors, we continue to like the asset class. Given where we are in the credit cycle, we do not intend to increase the beta. We prefer bonds with a relatively low spread-duration, mainly short call dates with high coupons and reset spreads in order to reduce the risk that bonds are not called.
Peter Kwaak
Peter Kwaak is a Senior Portfolio Manager and a member of the Credit team. Prior to joining Robeco in 2005, Mr. Kwaak was employed by Aegon Asset Management for three years as Credits and High Yield Portfolio Manager and at NIB Capital for two years as Portfolio Manager. Peter Kwaak started his career in the Investment Industry in 1998. Mr. Kwaak is a CFA Charterholder and holds a Master's degree in economics from the Erasmus University Rotterdam. Mr. Kwaak is registered with the Dutch Securities Institute.
Team
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.
Details
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundFacts.date,'llll') ]}}| Management company | |
| Fund capital | |
| Outstanding shares | |
| ISIN | LU1700711663 |
| Bloomberg | ROCHBIH LX |
| Valoren | 38694380 |
| WKN | |
| Availability | |
| 1st quotation date | 1508371200000 |
| Close financial year | 31-12 |
| Legal status | |
| Tracking error limit (%) | |
| Reference index |
Cost of this fund
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundCosts.managementFees.date,'llll') ]}}Ongoing charges |
|
|---|---|
| This fund deducts ongoing charges of |
| These charges comprise | ||
|---|---|---|
| Management fee | ||
| Service fee | ||
Transaction costs |
|
|---|---|
| The expected transaction costs are |
Performance fee |
|
|---|---|
| This fund may also deduct a performance fee of |
Extra fees
| max entry fee | ||
| Max exit fee | ||
| Max sub fee | ||
| Max switch fee |
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.
