RobecoSAM SDG Credit Income IH EUR
Targeting a consistent level of income by investing in companies that contribute to the SDGs
Share classes
Share classes
Every share class of a product invests in the same portfolio of securities and has the same investment objectives and policies. However, their parameters might deviate. For instance and amongst others, their distribution type, currency exposure or fees and expenses might differ. The most common share classes at Robeco are:
a) D/DH shares, which are regular shares and available for all Investors;
b) I/IH shares, for institutional investors as defined from time to time by the Luxembourg supervisory authority.
For more information on share classes please go to the prospectus.
IH-EUR
BX-USD
BXH-EUR
C-USD
CH-EUR
CH-GBP
F-USD
FH-EUR
IBH-GBP
IBX-USD
IH-GBP
Class and codes
Asset class:
Bonds
ISIN:
LU1806347891
Bloomberg:
ROCIIHE LX
Reference index
Bloomberg Customized BBB-BB rated Global Corporate index, 1-7 years (Hedged into EUR)
Sustainability-related information
Sustainability-related information
Under the EU Sustainable Finance Disclosure Regulation, products can be labelled as either Article 6, 8 or 9 fund.
Article 6 - The fund is not in scope of enhanced sustainability disclosures compared to Article 8 and 9.
Article 8 - The fund does not have a sustainable investment objective but promotes environmental or social characteristics and is subject to enhanced sustainability disclosures.
Article 9 - The fund has a sustainable investment objective and is subject to enhanced sustainability disclosures.
Regardless of Article 8 or 9, the companies in which investments are made must follow good governance practices, and sustainable investments must not do any significant harm.
Article 8
Morningstar
Morningstar
Copyright © Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Download The Morningstar Rating for Funds (chapter: The Morningstar Rating: Three-, Five-, and 10-Year) on the Morningstar website.
Rating (28/02)
- Overview
- Performance & costs
- Portfolio
- Sustainability
- Commentary
- Documents
MISSING: fund.detail.tabs.
Key points
- Flexibility to invest in all fixed income segments, including investment grade, high yield and emerging market corporate bonds
- Invests in companies that contribute to the United Nations Sustainable Development Goals
- Fund aims to maximize current yield and income for investors who are targeting a consistent level of income
About this fund
RobecoSAM SDG Credit Income is an actively managed fund that invests in companies that contribute to realizing the UN Sustainable Development Goals (SDGs). The selection of these bonds is based on fundamental analysis. The fund will invest in a broad array of fixed income sectors and utilize income efficient implementation strategies. The fund takes into account the contribution of a company to the UN SDGs. The portfolio is built on the basis of the eligible investment universe and the relevant SDGs using an internally developed framework about which more information can be obtained via the website www.robeco.com/si. The fund's objective is to maximize current income.
Defining fair value in global credit markets
Key facts
Total size of fund
€ 1,236,928,025
Size of share class
€ 44,374,930
Inception date share class
20-04-2018
1-year performance
5.57%
Dividend paying
No
Fund manager
Evert Giesen
Reinout Schapers
Jan Willem Knoll
Evert Giesen is Portfolio Manager Investment Grade in the Credit team. Previously, he was an Analyst, responsible for covering the Automotive sector within the Credit team. Prior to joining Robeco in 2001, Evert worked at AEGON Asset Management for four years as a Fixed Income Portfolio Manager. He has been active in the industry since 1997 and holds a Master's in Econometrics from Tilburg University. Reinout Schapers is Portfolio Manager Investment Grade in the Credit team. Prior to joining Robeco in 2011, Reinout worked at Aegon Asset Management where he was a Head of European High Yield. Before that, he worked at Rabo Securities as an M&A Associate and at Credit Suisse First Boston as an Analyst Corporate Finance. Reinout has been active in the industry since 2003. He holds a Master's in Architecture from the Delft University of Technology. Jan Willem Knoll is Portfolio Manager Investment Grade in the Credit team. He joined the Credit team in 2016. Previously, Jan Willem headed the Financials Equity sell-side research team at ABN AMRO. He started his career in the industry in 1999 at APG, where he held several positions including Portfolio Manager of a global insurance portfolio and subsequently a pan-European financials portfolio. Jan Willem holds a Master’s in Business Economics from the University of Groningen and he is a CFA® charterholder.
Performance
1 month
-1.03%
3 months
3.11%
YTD
-0.22%
1 year
5.57%
2 years
-1.50%
3 years
-2.23%
5 years
1.05%
Since inception 04/2018
0.88%
Statistics
Statistics
Characteristics
- Statistics
- Characteristics
Tracking error ex-post (%)
The ex-post tracking error is defined as the volatility of the fund's achieved excess return over the index return. In fund management, most managers are subject to an ex-ante (pre-determined) tracking error, which defines the extent of the additional risk they may take when aspiring to outperform the fund's benchmark. The ex-post tracking error explains the distribution of past fund performances compared to those of its underlying benchmark. With a higher tracking error, the fund's returns deviate more from its index's returns, hence there is a greater chance that the fund may outperform. The wider the spread of returns relative to the benchmark, the more "actively" a fund has been managed. In contrast, a low tracking error indicates more "passive" management.
2.02
5.28
Information ratio
This ratio serves to evaluate the quality of the excess return a fund manager has achieved because it takes the active risk involved into account. The information ratio is defined as the excess return over the benchmark return divided by the fund's tracking error. The higher the information ratio, the better. For example, a fund with a tracking error of 4% and an excess return of 2% over benchmark has an information ratio of 0.5, which is quite good.
0.13
0.57
Sharpe ratio
This ratio measures the risk-adjusted performance and allows the performance quality of different investments to be compared. It is calculated by subtracting the risk-free rate from the fund's returns and dividing the result by the fund's standard deviation (risk). So the Sharpe ratio tells us whether a fund's returns are the result of smart investment decisions or stem from taking extra risk. The higher the ratio, the better, meaning that a greater return is achieved per unit of risk. This ratio is named after its inventor, Nobel Laureate, William Sharpe.
-0.38
0.15
Alpha (%)
Alpha measures the difference between a portfolio's actual return and its expected performance, given the level of risk, compared to the benchmark. A positive alpha figure indicates that the fund has performed better than expected, given the level of risk. Beta is used to calculate the level of risk compared to the benchmark..
0.37
3.25
Beta
Beta is a measure of a portfolio's volatility, or systematic risk, in comparison to the benchmark. A beta of 1 indicates that the portfolio will move with the benchmark. A beta of less than 1 means that the portfolio will be less volatile than the benchmark. A beta of more than 1 indicates that the portfolio will be more volatile than the benchmark. For example, if a portfolio's beta is 1.2 it is theoretically 20% more volatile than the benchmark.
1.03
1.04
Standard deviation
Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread out the data is, the higher the deviation. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility (risk).
7.52
7.70
Max. monthly gain (%)
The maximum (i.e. highest) absolute positive monthly performance in the underlying period.
4.60
5.13
Max. monthly loss (%)
The maximum (i.e. highest) absolute negative monthly performance in the underlying period.
-6.20
-8.48
Rating
The average credit quality of the securities in the portfolio. AAA, AA, A en BAA (Investment Grade) means lower risk and BB, B, CCC, CC, C (High Yield) higher risk.
BAA2/BAA3
Option Adjusted Modified Duration (years)
The interest rate sensitivity of the portfolio.
5.00
Maturity (years)
The average maturity of the securities in the portfolio.
5.90
Green Bonds (%)
The percentage of total AuM in the portfolio (market-weight based) that is indicated as Green Bond in Bloomberg. Green bonds are any type of regular bond instrument for which the proceeds will be applied exclusively to environmental projects.
9.50
Costs
Ongoing charges
Indication of annual charges that are deducted for this fund. This indication is based on the costs over the last calendar year and may vary from year to year. Transaction costs incurred by the fund, any performance fees and other one-off costs are not included in the ongoing charges.
0.64%
Included management fee
A fee paid by the fund to the asset management company for the professional management of the fund.
0.50%
Included service fee
This fee is intended to cover official fees, such as the cost of annual reports, annual shareholders' meetings and price publications.
0.12%
Transaction costs
The transaction costs shown are the average annual transaction costs over the last three years calculated in accordance with European regulations.
0.03%
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.
Fund allocation
Currency
Duration
Rating
Sector
Subordination
Top 10
- Currency
- Duration
- Rating
- Sector
- Subordination
- Top 10
Policies
All currency risks are hedged.
The fund make use of derivatives for hedging purposes as well as for investment purposes.
This share class of the fund does not distribute dividend.
RobecoSAM SDG Credit Income is an actively managed fund that invests in companies that contribute to realizing the UN Sustainable Development Goals (SDGs). The selection of these bonds is based on fundamental analysis. The fund will invest in a broad array of fixed income sectors and utilize income efficient implementation strategies. The fund takes into account the contribution of a company to the UN SDGs. The portfolio is built on the basis of the eligible investment universe and the relevant SDGs using an internally developed framework about which more information can be obtained via the website www.robeco.com/si. The fund's objective is to maximize current income. The fund has sustainable investment as its objective within the meaning of Article 8 of the European Sustainable Finance Disclosure Regulation. The fund advances the UN Sustainable Development Goals (SDGs) by investing in companies whose business models and operational practices are aligned with targets defined by the 17 UN SDGs. The fund integrates ESG (Environmental, Social and Governance) factors in the investment process, applies Robeco’s Good Governance policy. The fund applies sustainability indicators, including but not limited to normative, activity-based and region-based exclusions. The investment policy of the fund is not constrained by a benchmark.
Risk management is fully embedded in the investment process to ensure that positions always meet predefined guidelines.
Sustainability-related disclosures
Sustainability profile
ESG Important Information
The sustainability information below can help investors integrate sustainability considerations in their process. This information is for informational purposes only. The reported sustainability information may not at all be used in relation to binding elements for this fund. A decision to invest should take into account all characteristics or objectives of the fund as described in the prospectus.
Sustainability
Sustainability is incorporated in the investment process by the means of a target universe, exclusions, ESG integration, and a minimum allocation to ESG-labeled bonds. The fund solely invests in credits issued by companies with a positive or neutral impact on the SDGs. The impact of issuers on the SDGs is determined by applying Robeco's internally developed three-step SDG Framework. The outcome is a quantified contribution expressed as an SDG score, considering both the contribution to the SDGs (positive, neutral or negative) and the extent of this contribution (high, medium or low). In addition, the fund does not invest in credit issuers that are in breach of international norms or where activities have been deemed detrimental to society following Robeco's exclusion policy. ESG factors are integrated in the bottom-up security analysis to assess the impact of financially material ESG risk on the issuer's fundamental credit quality. Furthermore, the fund invests at least 5% in green, social, sustainable, and/or sustainability-linked bonds. Lastly, where a credit issuer is flagged for breaching international standards in the ongoing monitoring, the issuer will become subject to exclusion.The following sections display the ESG-metrics for this fund along with short descriptions. For more information please visit the sustainability-related disclosures.The index used for all sustainability visuals is based on Bloomberg Customized BBB-BB rated Global Corporate index, 1-7 years (Hedged into EUR).
Market development
The US economy continues to be strong. Labor market data continues to surprise on the upside. The positive economic data was positive for risk assets in February. And the stronger economic data also shows that inflation is not on track to reach the Fed's target soon. Markets started to price out early rate cuts and 5-year Treasury yields rose 40 bps to 4.24%. In earlier notes, we wrote that we are cautious about the real estate sector. In February, there was further evidence of stress in this sector. New York Community Bancorp reported large losses on commercial real estate loans. In Europe, Deutsche Pfandbriefbank continues to be under pressure due to exposure to the US real estate market. Within emerging markets, the only real underperformer continues to be China. The economic recovery remains lackluster and prospects are not great. The Party Congress is now finally realizing that more centralized measures are needed to fix the economy. Global High Yield Index spreads decreased 37 bps to 3.95% and spreads on the Bloomberg Global Aggregate-Corporates Index decreased 5 bps to 1.06%. In emerging markets, the CEMBI spread decreased 29 bps to 2.83%.
Performance explanation
Based on transaction prices, the fund's return was -1.03%. The total return was negative in February. Credit contributed positively to the total return over the month, while duration made a negative contribution as yields rose. First Quantum bonds continued to perform as the company sold 2nd lien bonds in combination with an equity raise of USD 1 billion. This will give the company several years to arrange a solution for the dispute in Panama. Braskem bonds showed a strong performance as concerns about litigation risks are declining. Hybrid bonds of PCCW rallied as the underlying Hong Kong Telecom business remains solid, while the hybrid bonds still offer decent yields to investors looking for higher yielding investment opportunities. Deutsche Bank bonds were slightly weaker due to concerns around Deutsche Pfandbriefbank.
Expectation of fund manager
Evert Giesen
Reinout Schapers
Jan Willem Knoll
We argue that it remains wise to stay cautious in this environment. Markets seem to have fully embraced a goldilocks scenario. However, in our view, risks have not abated. History tells us that tightening cycles by central banks almost always lead to a recession. The early 90s were the exception when economies continued to do well in the years thereafter. Markets might simply be fooled by the long time lag before rate hikes impact the economy. The market is currently pricing in an optimistic scenario and for longer-dated credits, valuations are approaching historically tight valuations. However, there are still some pockets of value in the market. Valuations in shorter-dated credits are still relatively attractive and are around historical median levels. Bonds in the banking sector also still look attractive. A recession could lead to wider spreads, but the impact on the total return is manageable given the low spread duration. We also expect that in a recession scenario Treasury yields will drop, whereby the fund's 5-year duration position will support total returns.