Robeco Corporate Hybrid bonds IH USD
- 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 | Index | |
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| {{'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.
Statistics
{{'fund.detail.general.perDate' | labelize:[ fundDate( (fund.fundStatistics.date?fund.fundStatistics.date:fund.fundCharacteristics.date) ,'llll') ]}}| 3 years | 5 years | ||
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Market development
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundInvestmentExplanations.date,'llll') ]}}The Global Corporate Hybrids Index delivered a total return of +1.23% this month. The average spread on the index tightened 9 basis points to 245 bps at the end of the month. As a result, the global corporate hybrid market outperformed treasuries with an excess return of +0.48%. The euro denominated corporate hybrid market performed in line with the global index with an excess return of +0.51%.Risk appetite remained strong during March and global credit spreads continued to tighten.Corporate hybrids slightly outperformed the global investment grade market. The US High Yield and Bank Tier 1 (CoCos) markets underperformed the investment grade market, delivering negative excess returns. Investors are worried about the risk of a hard Brexit and about Italy. The most important driver for markets remains the fact that central banks have changed their tone to a more dovish stance. The US Federal Reserve has paused its rate hike cycle, in addition to ending its quantitative tightening policy. The ECB lowered its forecasts for the Eurozone economy, and indicated there will be no rate hike this year. These actions should support bonds with a high yield such as corporate hybrids.
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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| Yes | No | N/A | ||
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| 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') ]}}Given the high spreads on investment-grade hybrids we continue to like the asset class. We aim for a portfolio beta just above one. The average option-adjusted spread (OAS) on the global hybrid index stood at 245 bps at the end of the month, and hybrids in euros traded at 262 bps. The average spread on Investment Grade corporate hybrids is comparable to BB-rated high yield bonds. Many corporate hybrids trade at spreads of around 250-350 bps over treasuries on a yield-to-call basis. As we like these issuers on a fundamental basis (EDF, TransCanada, Danone, Grupo Bimbo to name a few), we expect their hybrids to be called on the first call date.
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 | |
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| ISIN | LU1874124479 |
| Bloomberg | ROCHIHU LX |
| Valoren | 43546293 |
| WKN | |
| Availability | |
| 1st quotation date | 1537228800000 |
| Close financial year | 31-12 |
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Cost of this fund
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Transaction costs |
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Extra fees
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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.
