Robeco Financial Institutions Bonds IH USD
- Diversified exposure to subordinated financial bonds
- Disciplined and repeatable investment process
- No active duration, nor FX exposure
About this fund
Performance
Performance
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundPerformances.date,'llll') ]}}| Subject | Fund | Reference index |
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Statistics
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Market development
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundInvestmentExplanations.date,'llll') ]}}Market sentiment turned negative again, after the strong performance in July. The most important driver was the fact that Italian government debt widened versus Germany. It is widely expected that the Italian government will be heading for an increase in next year’s budget deficit, to fulfill at least part of the promises made during the elections. With the Italian government debt already being at a very high level, any further increase of this debt pile will not be appreciated by capital markets. Early September, the most important political players in Italy hinted that the increase in the deficit might not be as high as feared by markets, after which Italian BTPs rallied. Fundamentally, financials are still performing well and most of the second quarter earnings that were reported were solid. A number of new bond deals was announced during the month, even though it was holiday season. We participated in new Tier 2 issues of insurer Mapfre and Svenska Handelsbanken. We also bought new senior holdco bonds issued by RBS. The bonds were issued at a spread that is higher than for Tier-2 bonds of Northern European banks.
Fund Classification
| Description | Yes | No | N/A | |
|---|---|---|---|---|
| Voting | ||||
| Engagement | ||||
| ESG integration | ||||
| Exclusion |
| Description | Yes | No | N/A | |
|---|---|---|---|---|
| Screening | ||||
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| Sustainability Themed Fund |
Fund allocation
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundAllocations.date,'llll') ]}}| Name | Sector | Weight |
|---|---|---|
Currency policy
All currency risks are hedged.
Derivative policy
Robeco Financial Institutions Bonds fund 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 does not distribute 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 Financial Institutions Bonds mainly invests in subordinated euro-denominated bonds issued by financial institutions. The fund offers a diversified exposure across 50-60 issuers, including the new style hybrid bonds that are being issued on the back of Basel III regulation. Focus of the fund are higher rated bonds (investment grade) with a tilt to Tier 2 bonds. The fund aims to outperform its index Barclays Euro-Aggregate: Corporates Financials Subordinated 2% Issuer Cap. The index applies an issuer cap to avoid concentration risk. The investment philosophy is based on managing a solid diversified 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. As the investment process is well-structured and proven over time, it contributes to repeatable performance delivery. 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 to ensure that positions always meet predefined guidelines.
Expectation of fund manager
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundFacts.date,'llll') ]}}Uncertainty in the market has grown in the past months, but valuation has become much more attractive at the same time. The index ended the month at a spread of 221 basis points, which compares to the low point of 125 basis points at the end of January. This means that the market is now trading at the same level as it was in early April 2017. Most of the risks that we see are macro risks without too much impact on the financial sector. European economic growth being not as strong as last year will only have a marginal impact on bondholders. Lower deposit rates for longer means an extended drag on profitability, but banks are able to cope with this. Fundamentally, banks and insurance companies are still doing well and benefiting for instance from low loan losses in a healthy economic environment. One issue with bigger repercussions could be the return of political risk in Europe. We do not expect a return of anti-euro rhetoric in Italy in the near term. What we do fear is European disagreement on the fiscal path in Italy. In the end, we expect European leaders to give in to the Italian government, but in the meantime we will remain cautious with our investments in Italy.
Jan Willem de Moor
Mr. de Moor is a Senior Portfolio Manager and a member of the Credit team. Prior to joining Robeco in 2005, Mr. de Moor was employed by SBA Artsenpensioenfondsen as Senior Portfolio Manager Equities for six years. Before that, he worked at SNS Asset Management holding positions of Portfolio Manager Equities (three years) and Research Analyst (two years). Jan Willem de Moor started his career in the Investment Industry in 1994. He holds a Master's degree in Economics from Tilburg University.
Team
The Robeco Financial Institutions Bonds fund is managed within Robeco’s credit team, which consists of nine portfolio managers and twenty-three credit analysts (of which four financials 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 dedicated quantitative researchers and 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 | Robeco Luxembourg S.A. |
| Fund capital | |
| Outstanding shares | |
| ISIN | LU1117477098 |
| Bloomberg | RFIBIHU LX |
| Valoren | 25594216 |
| WKN | A2AQQV |
| Availability | AT, DE, IT, LU, SG, CH |
| 1st quotation date | 1412726400000 |
| Close financial year | 31-12 |
| Legal status | Investment company with variable capital incorporated under Luxembourg law (SICAV) |
| Reference index |
Cost of this fund
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Transaction costs |
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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.
