We’ve been corporate bond investors since the 1970s and were one of the first European investors to launch a global high yield credit strategy. Today we’re also an industry leader in sustainable credits investing, with trailblazing SDG and climate-focused credit strategies. We continue to innovate, all while staying focused on running well-diversified and sustainable portfolios, where we take on the right level of risk at the right time.Guide to SDG Credits
Our style is contrarian, value-focused and research-driven. Our overall view of the credit cycle – as the Credit Quarterly Outlook – is the framework for our disciplined process of selecting the right bonds for the investment portfolios. In this way our strategies are designed to navigate market cycles, exploit market inefficiencies, and contribute positively to sustainable activity. A contrarian style can only be successful if it is backed by in-depth research capabilities. Our international team of analysts have the research skills, global sector expertise and sustainable investing knowledge to pinpoint the best opportunities. They form part of our stable credit team of investment professionals who know how to navigate the credit cycle: when and where to invest and what to avoid.
Incorporated in this process is our focus on measuring the true risk of our portfolios – historically, one of the biggest challenges facing credit investors. We developed an innovative method to do so in 2003, based on the observation that the product of a bond’s credit spread and its duration – its Duration Times Spread – accurately predicts its future volatility. The concept of DTS has found its way into all aspects of how we manage our credit portfolios at Robeco and has become an industry standard for measuring risk.
Watch the three-step process we use for some of our equity and credits funds to select companies that contribute positively to the SDGs.
In credit investing, where managing risk is a primary focus, a clear sustainability mindset is essential. In fact, we would argue that integrating long-term environmental, social and governance considerations into the investment process – as we have done since 2010 – is an important step in mitigating downside risk. Risks related to carbon emissions and how companies deal with these risks are now also integrated into our processes. In the end, these rigorous sustainability checks and balances help us identify credit opportunities that will deliver longer-term rewards.
We’ve also built on this approach by creating investment strategies that specifically target certain sustainability goals. Our impact solutions include the SDG Credit range, our Global and US Green Bond strategies, and the Global Climate Credit and Global Climate Bonds strategies.
In addition to our fundamental credit strategies, we offer a suite of quantitative, factor-based credit strategies. Robeco’s work in quantitative fixed income dates back to 1995, and relies on an experienced and stable team that has produced award-winning academic publications and launched strategies providing a range of client solutions.
Our SDG Credit strategies are a powerful impact investing tool that can help build wealth and contribute to the world’s collective well-being – all in a way that’s measurable.