Factsheet | Figures as of 31-08-2021
Robeco Financial Institutions Bonds DH EUR Robeco Financial Institutions Bonds is an actively managed fund that mainly invests in subordinated euro-denominated bonds issued by financial institutions. The selection of these bonds is based on fundamental analysis. The fund's objective is to provide long term capital growth.The fund offers a diversified exposure to subordinated bonds issued by banks and insurance companies and the focus of the fund is in general towards higher rated issuers (investment grade).
Performance Indexed value (until 31-08-2021) - Source: Robeco 200
180
160 Jan Willem de Moor Fund manager since 16-05-2011 140
Performance 120 Fund Index 1 m 0.04% -0.02% 100 3 m 1.24% 1.28% 80 Ytd 1.54% 1.67% 08-2011 06-2012 04-2013 02-2014 12-2014 10-2015 08-2016 06-2017 04-2018 02-2019 12-2019 10-2020 08-2021 1 Year 4.87% 4.64% Robeco Financial Institutions Bonds DH EUR 2 Years 2.36% 2.26% 3 Years 4.12% 4.31%
5 Years 3.88% 3.80% Performance 10 Years 6.59% 6.37% Based on transaction prices, the fund's return was 0.04%. Since 05-2011 5.69% 5.46% The index return for European subordinated financial debt was 0.0% in August. Credit spreads tightened 5 basis Annualized (for periods longer than one year) Note: due to a difference in measurement period between the fund and the index, performance differences may arise. For further info, see page 4. points to 133 basis points, which means that the spread return of subordinated financial debt amounted to 0.33%. Underlying government bond yields increased a bit, contributing negatively to the total return of the index. The
portfolio return was higher than that of the index. The top-down market positioning was neutral, with a beta very Calendar year performance close to 1. This top-down positioning had no impact on performance. The outperformance in August was driven by Fund Index issuer selection. Individual names that contributed most to performance, on a risk-adjusted basis, were Axa, Sampo, 2020 2.33% 2.56% BNP and LeasePlan. Laggards were Unipol and Intesa Sanpaolo. 2019 11.29% 10.45%
2018 -4.91% -3.32% Market development 2017 9.20% 7.91% Spreads for subordinated bonds issued by banks and insurance companies continued to grind tighter during the 2016 4.99% 5.37% month, thereby outperforming the overall investment grade credit market. The continued spread of the Covid Delta 2018-2020 2.69% 3.08% variant led to some (temporary) weakness in other markets, such as equities and high yield. Fed chairman Powell 2016-2020 4.42% 4.48% confirmed in his Jackson Hole speech that the Fed intends to taper bond purchases in the fourth quarter, unless the Annualized (years) labor market starts to weaken again. Central banks in Europe and the US are not in a hurry at all to increase interest rates, but the bond purchases tailwind will soon become softer. New issue markets were very quiet in the first weeks of the month, which probably helped credit spreads, but the amount of new issuance increased significantly in the Index last week of August. So far issuance has been concentrated in the senior unsecured space, only two index-eligible Bloomberg Euro-Aggregate: Corp. Fin. Subordinated 2% subordinated bonds were issued in August. This means that portfolio activity was also muted in August. Issuer Cap (EUR)
Expectation of fund manager General facts Most likely, the credit market will at best deliver a coupon excess return. A boring year, in other words. We think it is Morningstar better to be positioned on the cautious side. ‘All signs on green’ has become the widely shared view for credit. This is Type of fund Bonds a market that no longer compensates for tail risks and which is vulnerable to negative surprises. Confirmation biases Currency EUR rule. The credit impulse is set to roll over in Europe, the US and China. So, the net combined fiscal and private credit Total size of fund EUR 2,510,514,126 impulse will become negative soon. Towards 2022, this might start to have a dampening impact on growth rates. At Size of share class EUR 142,717,575 times like these, it is best to be humble about the unknowns and to just accept that, every now and then, it is difficult Outstanding shares 807,163 to see the forest for the trees. In the past quarters, we reduced the overall market sensitivity of the portfolio to 1st quotation date 16-05-2011 neutral versus the index. We mainly achieved this by reducing the exposure to CoCos. In an environment where Close financial year 31-12 spreads are low and compressed, we think it makes sense to aim for a more cautious positioning. Ongoing charges 0.91% Daily tradable Yes Dividend paid No Ex-ante tracking error limit 4.00% Management company Robeco Institutional Asset Management B.V.
Sustainability profile
Exclusions Full ESG Integration
Engagement
For more information on exclusions see https://www.robeco.com/exclusions/
The value of your investment may fluctuate. Past performance is no guarantee of future results.Please visit www.robeco.com for more information, the Key Page 1 / 4 Investor Information Document and the prospectus For more information visit: www.robeco.com
Robeco Financial Institutions Bonds DH EUR Factsheet | Figures as of 31-08-2021
Top 10 largest positions Top 10 largest positions The fund has a benchmark that caps benchmark weights at Holdings Sector % 2%. For diversification reasons, actual individual positions will Standard Chartered PLC Financials 2.82 be limited to 3% at max. Holdings typically consist of ING Groep NV Financials 2.81 exposures to large and strong banks and insurance companies. NN Group NV Financials 2.81 ASR Nederland NV Financials 2.73 BNP Paribas Cardif SA Financials 2.70 Fund price La Mondiale SAM Financials 2.67 31-08-21 EUR 176.85 Raiffeisen Bank International AG Financials 2.67 High Ytd (05-08-21) EUR 177.18 Banque Federative du Credit Mutuel SA Financials 2.59 Low Ytd (26-02-21) EUR 173.23 CNP Assurances Financials 2.57
Danske Bank A/S Financials 2.55 Fees Total 26.92 Management fee 0.70%
Performance fee None Service fee 0.16% Statistics Expected transaction costs 0.06% 3 Years 5 Years
Tracking error ex-post (%) 1.13 0.99 Legal status Information ratio 0.65 1.00 Investment company with variable capital incorporated Sharpe ratio 0.72 0.82 under Luxembourg law (SICAV) Alpha (%) 0.21 0.48 Issue structure Open-end Beta 1.11 1.12 UCITS V Yes Share class DH EUR Standard deviation 7.71 6.36 This fund is a subfund of Robeco Capital Growth Funds, Max. monthly gain (%) 5.55 5.55 SICAV Max. monthly loss (%) -10.05 -10.05 Above mentioned ratios are based on gross of fees returns
Registered in Hit ratio Austria, Belgium, Chile, France, Germany, Italy, 3 Years 5 Years Luxembourg, Netherlands, Singapore, Spain, Switzerland, United Kingdom Months outperformance 22 39 Hit ratio (%) 61.1 65.0 Months Bull market 25 40 Currency policy Months outperformance Bull 18 32 All currency risks are hedged. Hit ratio Bull (%) 72.0 80.0 Months Bear market 11 20
Risk management Months Outperformance Bear 4 7 Risk management is fully embedded in the investment Hit ratio Bear (%) 36.4 35.0 process to ensure that positions always meet predefined Above mentioned ratios are based on gross of fees returns. guidelines. Characteristics Fund Index Dividend policy Rating BAA1/BAA2 BAA1/BAA2 The fund does not distribute dividend. The fund retains any income that is earned and so its entire performance is Option Adjusted Modified Duration (years) 4.3 4.3 reflected in its share price. Maturity (years) 4.6 4.6 Yield to Worst (%, Hedged) 0.8 0.6 Green Bonds (%, Weighted) 3.1 5.2 Derivative policy Robeco Financial Institutions Bonds fund make use of derivatives for hedging purposes as well as for investment Changes purposes. These derivatives are very liquid. Changes (only for share classes launched before March 2012)Before March 2012 the benchmark was the Barclays
Euro Universal, sub financials index (Investment Grade + High Yield) (EUR). In the current benchmark, High Yield bonds are excluded and the issuers are capped on max. 2% per single issuer, which limits the absolute risk towards a Fund codes single issuer. ISIN LU0622663176 Bloomberg ROBFIDH LX
Sedol BYSJKJ5 ESG integration policy WKN A1JUN8 Valoren 12950162 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.
The value of your investment may fluctuate. Past performance is no guarantee of future results.Please visit www.robeco.com for more information, the Key Page 2 / 4 Investor Information Document and the prospectus For more information visit: www.robeco.com
Robeco Financial Institutions Bonds DH EUR Factsheet | Figures as of 31-08-2021
Sector allocation Sector allocation Deviation index The fund only invests in financials – excess cash may be invested in
(German) government bonds. Two positions in the fund, La Financials 92.6% 1 -7.4% Banque Postale and Caixa Geral, are classified as agencies.
Treasuries 5.1% 1 5.1% Agencies 0.9% 1 0.9% Cash and other instruments 1.3% 1 1.3%
Currency denomination allocation Currency denomination allocation Deviation index The fund is allowed to invest in currencies other than euros.
Approximately 7% of the fund is invested in bonds issued in pound Euro 93.0% -7.0% sterling and US dollar. All foreign currency exposures are hedged.
Pound Sterling 3.5% 3.5% U.S. Dollar 3.4% 3.4%
Duration allocation Duration allocation Deviation index The fund aims to hold an interest rate position that is neutral versus the benchmark. Euro 4.3 1 0.0
Rating allocation Rating allocation Deviation index The fund does not follow an active rating strategy – the current rating allocation is a result of bottom-up bond AAA 5.1% 1 5.1% selection. The fund is allowed to invest in high yield and circa 13% of the portfolio is currently invested in high yield A 12.6% 1 -7.7% rated bonds. BAA 68.4% 1 -11.3% BA 11.3% 1 11.3% B 1.3% 1 1.3% Cash and other instruments 1.3% 1 1.3%
Country allocation Country allocation Deviation index Country allocation is to a large extent bottom-up driven. We are underweight in French banks, as spreads are tight. The largest France 17.9% 1 -6.5% overweight can be found in Spanish banks.
Netherlands 16.3% 1 5.3% Spain 9.7% 1 1.8% United Kingdom 8.8% 1 -2.1% Germany 8.7% 1 -1.6% Switzerland 7.5% 1 1.5% Denmark 4.6% 1 0.6% Belgium 4.3% 1 0.0% Italy 4.3% 1 2.3% Austria 4.2% 1 -1.6% Finland 2.6% 1 -1.1% Other 9.8% 1 0.1% Cash and other instruments 1.3% 1 1.3%
Subordination allocation Subordination type allocation Deviation index About 78% of the portfolio is invested in Tier 2 debt: 46% is invested in Tier 2 bonds issued by banks and 32% in Tier Tier 2 77.5% 1 -8.6% 2 bonds issued by insurance companies. About 7% of the portfolio is invested in Tier 1 debt, of which bank Tier 1 Hybrid 7.2% 1 -5.1% CoCo bonds represent around 4%. We reduced exposure Tier 1 7.0% 1 5.9% to CoCo bonds in January as credit markets have Senior 6.9% 6.9% performed strongly in the past months and we prefer to 1 have a beta positioning that is neutral (close to 1). On top Subordinated 0.1% 1 -0.4% of the bank CoCo bonds, we hold a bit more than 1% in Cash and other instruments 1.3% 1 1.3% insurance CoCo bonds. The exposure to senior bonds mainly consists of German Bunds. The hybrid category contains subordinated debt issued by insurance companies.
The value of your investment may fluctuate. Past performance is no guarantee of future results.Please visit www.robeco.com for more information, the Key Page 3 / 4 Investor Information Document and the prospectus For more information visit: www.robeco.com
Robeco Financial Institutions Bonds DH EUR Factsheet | Figures as of 31-08-2021
Investment policy Robeco Financial Institutions Bonds is an actively managed fund that mainly invests in subordinated euro-denominated bonds issued by financial institutions. The selection of these bonds is 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, next to engagement. The fund offers a diversified exposure to subordinated bonds issued by banks and insurance companies and the focus of the fund is in general towards higher rated issuers (investment grade). The majority of bonds selected will be components of the Benchmark, but bonds outside the Benchmark 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.
Fund manager's CV 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 info 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.
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.
Morningstar Copyright © Morningstar Benelux. 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. For more information on Morningstar, please refer to www.morningstar.com
Febelfin disclaimer The fact that the sub-fund has obtained this label does not mean that it meets your personal sustainability goals or that the label is in line with requirements arising from any future national or European rules. The label obtained is valid for one year and subject to annual reappraisal. For further information on this label, please visit www.towardssustainability.be.
Disclaimer This document has been carefully prepared by Robeco Institutional Asset Management B.V. (Robeco). The information contained in this publication is based upon sources of information believed to be reliable. Robeco is not answerable for the accuracy or completeness of the facts, opinions, expectations and results referred to therein. Whilst every care has been taken in the preparation of this document, we do not accept any responsibility for damage of any kind resulting from incorrect or incomplete information. This document is subject to change without notice. The value of the investments may fluctuate. Past performance is no guarantee of future results. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency. Unless otherwise stated, performances are i) net of fees based on transaction prices and ii) with dividends reinvested. Please refer to the prospectus and the Key Investor Information Document of the funds for further details. These are available at the Robeco offices or via the www.robeco.com website. The ongoing charges mentioned in this publication express the operational costs including management fee, service fee, taxe d'abonnement, depositary fee and bank charges and is the one stated in the fund's latest annual report at closing date. The information contained in this document is solely intended for professional investors under the Dutch Act on the Financial Supervision (Wet financieel toezicht) or persons who are authorized to receive such information under any other applicable laws. Robeco Institutional Asset Management B.V. has a license as manager of UCITS and AIFs from the Netherlands Authority for the Financial Markets in Amsterdam.
The value of your investment may fluctuate. Past performance is no guarantee of future results.Please visit www.robeco.com for more information, the Key Page 4 / 4 Investor Information Document and the prospectus For more information visit: www.robeco.com