Robeco High Yield Bonds 0IH CHF
- 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 | 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 1.05%. The global high yield market delivered a total return of roughly 1.15%, mainly driven by spread tightening. Rates moved more or less sideways. The fund underperformed the index in June by roughly 10 bps, which can be attributed to the underweight portfolio beta (-22 bps), versus issuer selection that added around 15 bps. High yield spreads compressed, but on a risk adjusted basis BBs and CCCs performed in line, both beating the single B space. Being overweight euro high yield versus underweight the US also detracted a few basis points. This is mainly due to the result of the US index having a larger percentage of CCC-rated bonds compared to Europe. From a sector perspective we saw the energy sector as the big winner, with WTI oil prices moving up above USD 70 per barrel. On an issuer level our overweight in Nabors was the largest gainer with +3 bps, whereas our underweight in Occidental petroleum detracted 1 bp. Other winners related to overweights in Sirius XM Radio, Rayonier Advanced Materials and Anglian Water, all contributing 1 bp. Issuers that detracted to our relative performance (max 1 bp) were HCA Healthcare (OW), EDF (OW) and Ford (UW).
Statistics
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Market development
{{'fund.detail.general.perDate' | labelize:[ fundDate(fund.fundInvestmentExplanations.date,'llll') ]}}High yield bond spreads managed to tighten to a record low in June, with spreads compressing to levels last seen in October 2018. All asset classes rallied amid growing confidence that inflation will prove to be transitory – meaning no surprise reaction from central banks. The 10-year US Treasury yield declined 12 bps for the month despite a more-than-expected hawkish tone coming from the FOMC minutes. The most interesting observation was that the interest rate forecast for 2023 shows two rate hikes, with the first one ultimo 2022. High yield total return was 1.15% for the month with spread tightening being the largest contributor. When looking at rating classes, CCCs (+1.5%) outperformed Bs (+1%) and BBs (+1.49%) in total return terms. This lowest rating category has outperformed the broader index for the 10th time in the last 11 months. Primary market activity showed little sign of stopping in June, albeit aggregate volume was the lightest since February. High yield bond issuance in the US totaled USD 37 billion versus previous months of USD 50 billion and more. The average yield to worst for GHY index ended the month at 3.75% with an average spread of 275 bps.
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. The income earned by the fund is reflected in its share price. The fund's entire result is thus reflected in its share price development.
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 is an actively managed fund that invests in high yield corporate bonds. The selection of these bonds is mainly based on fundamental analysis. The fund's objective is to provide long term capital growth. The fund aims for a better sustainability profile compared to the Benchmark by promoting certain ESG (i.e. Environmental, Social and corporate Governance) characteristics within the meaning of Article 8 of the European Sustainable Finance Disclosure Regulation and integrating ESG and sustainability risks in the investment process. In addition, the fund applies an exclusion list on the basis of controversial behavior, products (including controversial weapons, tobacco, palm oil and fossil fuel) and countries. The fund invests in corporate bonds with a sub-investment grade rating, issued primarily by issuers from developed markets (Europe/US). The portfolio is broadly diversified, with a structural bias to the higher rated part in high yield. Performance drivers are the top-down beta positioning as well as bottom-up issuer selection.The majority of bonds selected will be components of the Benchmark, but bonds outside the Benchmark index may be selected too. The fund can deviate substantially from the weightings of the Benchmark. The fund aims to outperform the Benchmark over the long run, whilst still controlling relative risk through the applications of limits (on currencies and issuers) to the extent of deviation from the Benchmark. This will consequently limit the deviation of the performance relative to the Benchmark. The Benchmark is a broad market weighted index that is not consistent with the ESG characteristics promoted by the fund.
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') ]}}A few things are clear. Barring accidents, the US should print a 10% nominal GDP growth number this year. That said, growth in industrial production seems to be peaking and the fiscal impulse is set to roll over, first in China, then in the US. This means markets are priced for the current perfect recovery but not for future uncertainty. One could wonder why yields do not rise much more in a year of 10% nominal growth. It is interesting that the Fed put a lot of effort into convincing the market that it will let the economy run hot. It even changed its policy framework last year, to allow for a more symmetric inflation acceptance. Now, inflation rates are rising in the US, with a recent 5% CPI print. Having previously stated that they think this will prove transitory, the Fed last week rowed back from this position. The talk about the talk about when to start tapering had been expected. We expect taper talks will intensify over Q3. It means that plain sailing is over and that we have to be open to a reversal of events. We do not think risk premiums reflect this. The room for error has become smaller again. We are not running huge underweight in betas but are simply just below one.
Sander Bus, Roeland Moraal
Sander Bus is Co-Head of the Credit team and Lead Portfolio Manager Global High Yield Bonds. He has been dedicated to High Yield at Robeco since 1998. Previously, Sander worked for two years as a Fixed Income Analyst at Rabobank where he started his career in the industry in 1996. He holds a Master's in Financial Economics from Erasmus University Rotterdam and is a CFA® charterholder. 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 Moraal is Lead Portfolio Manager European High Yield in the Credit team. Before assuming this role, he was Portfolio Manager in the Robeco Duration team and worked as an Analyst with the Institute for Research and Investment Services. Roeland started his career in the industry in 1997. He holds a Master's in Applied Mathematics from the University of Twente and a Master’s in Law from Erasmus University Rotterdam.
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 | |
| Size of share class | |
| Outstanding shares | |
| ISIN | LU0988110366 |
| Bloomberg | RHYOIHC LX |
| Valoren | 22729952 |
| WKN | A14X6H |
| Availability | |
| 1st quotation date | 1383868800000 |
| 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 0.01% 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.
