Robeco High Yield Bonds DH AUD
- Managed with a conservative approach
- Disciplined and repeatable investment process
- Experienced team management
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 1.07%. The global high yield market delivered a total return of around 1.5%, on the back of strong spread tightening. Rates in the US and Europe widened marginally, contributing negatively for the month. The fund underperformed the index in December, which can be attributed to the large underweight beta positioning (-25 bps). Issuer selection was also a small negative for the month. This was mainly driven by our overweight in Euro high yield versus the underweight in the US (-12 bps). The allocation over ratings was more or less flat; although CCC in the US outperformed slightly on a risk-adjusted basis. On an issuer level, the fund benefited from a strong price recovery in the energy sector. Overweight positions in Nabors, Transocean and Antero Resources contributed around 4 bps each and were the top performers for the month. Our off-benchmark overweight in Braskem/Idesa (BAKIDE) was the largest detractor for the month. The company is involved in a dispute with the Mexican government regarding contractual gas supply agreements the country cannot honor. Bonds reacted negatively on this shutdown news and dropped 10 points, which detracted 3 bps from our relative performance.
Statistics
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Market development
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundInvestmentExplanations.date,'llll') ]}}The global high yield market spread declined 40 bps in December, back to the pre-pandemic levels. Over the course of 2020, we have seen high yield spreads spike to historic highs in March, but in the end, spreads recorded a minor widening of 20 bps for the year. Underlying US Treasury yields declined over 100 bps for the year. The index generated just over a 1.5% total return in December on the back of ever more expected stimulus and positive vaccine expectations. The latter caused the more cyclical sectors that have been hit the hardest during the year to print solid returns. Energy (+5%), transportation (+3%) and metals and mining (+2.5%) were the big winners. New issue volume was strong, with just over USD 30 billion being issued, making this one of the most active primary December months during the past decade. Net issuance was up 64% compared to last year. There were a couple of defaults for the month in the energy sector, namely Superior Energy Services and Callon Petroleum. The high yield asset class reported a small outflow for the month after a few consecutive months of strong inflows. The average yield to worst of the Global High Yield Index ended the month at 3.97%.
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 High Yield Bonds make use of derivatives for hedging purposes as well as for investment purposes. These derivatives are very liquid.
Dividend policy
The fund does not distribute dividend. Any income earned by the fund is reflected in its share price.
ESG Integration policy
Our analysis of issuers goes beyond the traditional financial factors and includes the issuers’ performance on ESG factors. We deem it essential for a well-informed investment decision to take into account those ESG factors that have the potential to materially impact the financial performance of the issuer. This perfectly matches the basic need to avoid the losers in credit management, as many credit events in the past can be attributed to issues such as poorly designed governance frameworks, environmental issues, or weak health & safety standards. The aim of ESG integration is to improve the risk/return profile of the investments and does not have an impact goal. ESG analysis is fully integrated in the bottom-up security analysis. We have defined key ESG factors per industry, and for every company we analyze how the firm is positioned versus these key ESG factors, and how this impacts the fundamental credit quality.
Investment policy
Robeco High Yield Bonds invests in corporate bonds with a sub-investment grade rating, issued primarily by US and European issuers. The portfolio is broadly diversified with a structural bias to the higher rated part in high yield (BB/B). Performance drivers are the top-down beta positioning as well as bottom-up issuer selection. The fund aims to outperform its index Barclays US Corporate High Yield & Pan European High Yield ex Financials, 2.5% 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 discusses and defines 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. Holdings in equities can only appear in the portfolio as a result of corporate actions and/or debt restructuring. It is not the intention of the portfolio manager to use options or swaptions. 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.
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') ]}}Fundamentally, we have seen the fastest drop in economic activity in seventy years. Spreads reached very substantial levels and the US high yield default rate reached 8%. Thanks to a well-coordinated series of policy actions by fiscal and monetary authorities, a recovery set in quickly. Most key potentially negative events have been priced out by the markets. From Covid-19 to the US elections and a default cycle, we have had it all in the shortest credit cycle ever. The possible variation in economic and technical outcomes is large. In order for credit markets to keep rallying, we need a flawless situation on the political front, no monetary mistakes, no substantial rate volatility, a further earnings recovery, and certainly no fatigue in fiscal stimulus. In short, simply the best set of pathways justifies current valuations. The year will be either boring or bearish. There is hardly any room for aggressive tightening. At best, we will see some carry, roll down and certain sectors recovering from Covid-19. We still find value in pockets of the market in individual situations. The big beta play is done though; it is back to stock selection and being more cautious.
Sander Bus, Roeland Moraal
Mr. Bus is Head of the Credit team and manages our high yield portfolios. Prior to joining Robeco in 1998, Mr. Bus worked for Rabobank as a fixed income analyst for two years. Mr. Bus holds a Master's degree in Financial Economics from Erasmus University, Rotterdam. He became a CFA charter holder in 2003 and is registered with the Dutch Securities Institute. Mr. Bus has been active in the industry since 1996. Mr. Roeland Moraal, Vice President, CEFA, Portfolio Manager. Roeland is a Senior Portfolio Manager High Yield within Robeco's Credit team since January 2004. Before assuming this role, he was portfolio manager in our Rates team for two years and worked as an analyst with the Institute for Research and Investment Services for three years. Roeland started his career in the investment industry in 1997 at Robeco. He holds a Master's degree in applied mathematics from the University of Twente and a Master's degree in Law from Erasmus University, Rotterdam. Roeland became a CEFA charter holder in 2000 and he is registered with the Dutch Securities Institute.
Team
The Robeco High Yield 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 | LU1685736263 |
| Bloomberg | ROHYDHA LX |
| Valoren | 38311068 |
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| Availability | |
| 1st quotation date | 1505952000000 |
| Close financial year | 31-12 |
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Cost of this fund
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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 0.05% 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
The fiscal consequences of investing in this fund depend on the investor's personal situation. For private investors in the Netherlands real interest and dividend income or capital gains received on their investments are not relevant for tax purposes. Each year investors pay income tax on the value of their net assets as at 1 January if and inasmuch as such net assets exceed the investor’s tax-free allowance. Any amount invested in the fund forms part of the investor's net assets. Private investors who are resident outside the Netherlands will not be taxed in the Netherlands on their investments in the fund. However, such investors may be taxed in their country of residence on any income from an investment in this fund based on the applicable national fiscal laws. Other fiscal rules apply to legal entities or professional investors. We advise 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.
