Robeco Emerging Credits IH USD
- Diversified exposure to the Global Emerging Credit market
- Repeatable investment process
- Team
About this fund
Price development
Performance
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundPerformances.date,'llll') ]}}| Fund | Reference 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.
Performance explanation
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundInvestmentExplanations.date,'llll') ]}}Based on transaction prices, the fund's return was 2.72%. The fund has positions in all major regions and economies. The fund had an overweight risk position during the month. The risk weight made a positive contribution to the fund’s performance. Issuer selection had a negative impact on the performance. High risk countries such as Argentina, Ukraine and Jamaica performed very well where the fund is underweight. Some of the most severely hit CCC-rated names in December rebounded in January which resulted in a negative contribution to performance.
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 CEMBI Index returned +2.72% (in USD) this month as credit spreads tightened and rates moved lower. The 10-year US Treasury yield declined 3 basis points to 2.63%. The spread on the JP Morgan CEMBI Index decreased 42 bps to 3.09%. What a difference a month makes. After the aggressive move wider of credit markets in December, spreads reversed these moves in equal speed in January. Statements by Fed chairman Powell seem to be the key reason for the reversal. Powell came back on its previous announcements to continue hiking rates in 2019. Commentaries suggested he was giving in to political pressure and pressure from markets. For emerging markets the pause is good news. Increasing rates were hurting emerging countries, especially those who are very reliant on USD funding. As a result higher beta countries such as Argentina, Turkey and South Africa were among the best performing markets. Economically there is little to cheer about. China’s growth numbers continue to move down and trade data and PMIs across especially Asia have been trending down. However, the support from lower US rates overtops economic data. For now at least.
Fund allocation
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundAllocations.date,'llll') ]}}| Name | Sector | Weight |
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Fund Classification
| Yes | No | N/A | ||
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| Voting | ||||
| Engagement | ||||
| ESG integration | ||||
| Exclusion |
| Yes | No | N/A | ||
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| Screening | ||||
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| Sustainability Themed Fund |
Currency policy
All currency risks are hedged.
Dividend policy
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.
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
The Robeco Emerging Credit Bonds Fund is aimed at investors seeking higher yields than those offered by government bonds, but without the higher risk of a pure high-yield corporate bond fund. The fund invests in the emerging credits markets with predominantly investment grade credit acting as the core of the strategy. It does have the freedom to invest into other asset classes within the fixed income credit universe.. The fund is managed by an experienced team with a proven track record capable of generating good performance in both rising and falling bond markets. Robeco uses investment strategies that can provide solid returns in both rising and falling bond markets as proven by its strong track record. The fund benefits from the ample resources at its disposal to cover the credit markets. The investment team is highly experienced and stable with clear split in responsibilities between the portfolio managers and the credit analysts. The investment process is well structured and has a disciplined approach and is based both on a top down macro outlook of the credit markets and an in depth and comprehensive bottom up fundamental credit analysis. The fund applies a total return approach with the flexibility to invest in asset classes such as securitized and high yield. This allocation is based on attaining the best risk reward profile for the fund. As such the portfolio manager will switch out of Investment grade into one of these categories when this corresponds to a more efficient use of the risk budget. The fund also benefits from the Robeco proprietary state of the art risk monitoring system.
Risk policy
Risk management is fully embedded in the investment process to ensure that positions always meet predefined guidelines.
Expectation of fund manager
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundFacts.date,'llll') ]}}China’s growth engine continues to slow down, putting pressure on global economic growth. This has an impact on commodity prices and on China’s main trading partners. As a result we see PMIs in the Asian region decline, pointing towards a slowdown in the entire region. So far commodity prices are holding up well which is partly due to the better shape China’s industrial sector is in. Authorities have rationalized several industries with overcapacity. Over the past month, Chinese authorities have implemented new loosening measures. In the US federal Reserve chairman Powell announced a surprising pause in the rate hiking cycle. It was a key reason for last month’s market performance. No further rate hikes is good news for many emerging markets as they are reliant on offshore dollar liquidity. Many EM central banks were forced to hike interest rates to protect their currencies from falling too much. This resulted in slower economic activity as the economies did not need higher rates. As a result the market is balancing between slow economic data from China and improved liquidity in the market. Liquidity seems to be outweighing the fundamental data.
Reinout Schapers
Mr. Schapers is Portfolio Manager Emerging Market Credits in the Credit team. Prior to joining Robeco in 2011, Reinout worked at Aegon Asset Management for 5 years where he was a senior portfolio manager high yield credits and was Head of High Yield Europe since 2008. Before that, he worked at Rabo Securities as an M&A associate and at Credit Suisse First Boston as a corporate finance analyst. He holds an Engineering degree in Architecture from the Delft University of Technology. He has been active in the industry since 2003.
Team
The Robeco 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.
Details
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundFacts.date,'llll') ]}}| Management company | |
| Fund capital | |
| Size of share class | |
| Outstanding shares | |
| ISIN | LU1599173124 |
| Bloomberg | REMCIHU LX |
| Valoren | 36438301 |
| WKN | |
| Availability | |
| 1st quotation date | 1492646400000 |
| Close financial year | 31-12 |
| Legal status | |
| Tracking error limit (%) | |
| Reference index |
Cost of this fund
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| Service fee | ||
Transaction costs |
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| The expected transaction costs are |
Performance fee |
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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.
