Robeco Financial Institutions Bonds Feeder Fund-zero duration IH EUR
- Diversified exposure to subordinated financial bonds
- Disciplined and repeatable investment process
- No active duration, nor FX exposure
About this fund
Price development
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)
Initial charges or eventual custody charges which intermediaries might apply are not included.
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)
Initial charges or eventual custody charges which intermediaries might apply are not included.
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 -1.66%. The portfolio posted a negative return in May, which was a bit lower than the return of the index. The average credit spread of the index widened from 204 basis points to 235 basis points during the month. This means that the excess return of subordinated financial bonds over government debt amounted to -1.52% in May. The beta of the portfolio was a bit above one during the month. This top-down positioning made a negative contribution to the performance of the portfolio. We did not change the beta positioning during the month. The contribution of issuer selection in May was marginally positive. Our overweight in AT1 CoCos contributed positively, as this part of the market outperformed on a risk-adjusted basis. The overweight in insurance perpetuals contributed negatively, as these bonds underperformed. Looking at individual names, the biggest contributors to performance on a risk-adjusted basis were Belfius, Bankia and BBVA.
Statistics
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Market development
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundInvestmentExplanations.date,'llll') ]}}The total return of subordinated financial bonds was negative in May, as credit spreads widened significantly. Sentiment during the month was weak, not only for bonds but also for equities. The trade war was the main concern. In early May, Trump tweeted about an increase in tariffs for Chinese imports, which was an important driver for the change in sentiment. In the week that followed, Trump further targeted Huawei by imposing restrictions on the purchase of Huawei products. On the last day of the month, Trump threatened to impose tariffs on Mexican imports.With the worries around global trade, the worries around the slowdown in economic growth also increased. Oil prices experienced a remarkable decline and global risk-free rates declined as well. Especially the decline in US Treasury yields, from 2.50% to 2.13% in May, was remarkable. German Bund yields reached a new low at -0.24%. Nevertheless, some new deals were announced, often at very attractive spreads. Leaseplan issued a CoCo paying a 7.375% coupon, which we bought. We also participated in the new issue of Sampo.
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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| Sustainability Themed Fund |
Currency policy
All currency risks are hedged.
Derivative policy
The Feeder Fund uses derivatives to hedge the duration of the Master. The duration hedge will lead to intended performance differences between the Feeder Fund and the Master. Interest rate movements will have a different effect on the Master and the Feeder Fund.
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
This Fund is a feeder Fund ( the “Feeder Fund”) and as such invests at least 85% of its assets in class Z2H shares of Robeco Capital Growth Funds SICAV – Robeco Financial Institutions Bonds (“the Master”). The Master is a sub-fund of Robeco Capital Growth Funds SICAV, a Luxembourg open-ended investment company with variable capital. The Master invests mainly in subordinated euro-denominated bonds issued by financial institutions and similar non-government fixed income securities. The Master aims to outperform the benchmark by taking positions that deviate from the benchmark. The benchmark of the Master is Barclays Euro-Aggregate: Corp.Fin.Subordinated 2% Issuer Cap.
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') ]}}We have reduced the size of the credit overweight in the portfolio in the last few months, though we kept our positive view on the fundamental credit quality of the financial sector. The fact that yield curves are flattening and that the first rate hike in Europe is still nowhere in sight, is not helpful for financials. But banks and insurance companies have been dealing with the low interest rate environment for a number of years already. It seems unlikely that credit costs for banks will decline further, but we also do not see much reason for a sudden increase in credit charges. We think the recapitalization of the European banking sector is finished, but we do not expect banks to increase leverage again.We may have been too conservative and we can think of potential positive surprises. China being able to reignite economic growth could have a positive impact on European economies. The change in Fed stance might be just in time to avoid a more significant slowdown in US economic growth. For now, we still prefer to be a bit more cautious though. But we still are overweight in credit risk and we still see interesting value opportunities, such as in the Spanish banking sector.
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 | |
| Fund capital | |
| Size of share class | |
| Outstanding shares | |
| ISIN | LU1734222885 |
| Bloomberg | ROBFFIH LX |
| Valoren | 39474947 |
| WKN | |
| Availability | |
| 1st quotation date | 1524700800000 |
| Close financial year | 31-12 |
| Legal status | |
| Tracking error limit (%) | |
| Reference index |
Cost of this fund
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Transaction costs |
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| The expected transaction costs are |
Performance fee |
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| This fund may also deduct a performance fee of |
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.
