Robeco SDG Credit Income Fund (AUD Hedged) - Class B

Product Name

Robeco SDG Credit Income Fund (AUD Hedged) - Class B

Issuer

Robeco

Category

Investment

Type

Fund or Trust

Target

Wholesale, Institutional

Certified Since

2021

Asset Classes

Fixed income

Markets

New Zealand, Australia

Investment Approaches

Positive Screening, ESG Integration

It Includes:

  • Riaa icons 14 Education
  • Riaa icons 11 Impact investments
  • Riaa icons 10 Renewable energy and energy efficiency
  • Riaa icons 15 Social and sustainable infrastructure
  • Tree green background Sustainable land and agricultural management
  • Riaa icons 31 Sustainable water

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

It fully excludes:

  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations

Overview

In the RobecoSAM SDG Credit Income strategy we look for investments with a positive societal impact, whilst generating healthy financial returns. We define impact as an alignment with the UN Sustainable Development Goals (SDGs). We identify and evaluate the impact that specific credits have on the SDGs, and score all the issuers under coverage of the analyst team. These scores categorize credits as having either a Positive, Neutral, or Negative impact on the SDGs. The scores are then used in a screening process, to define the investable universe that exclude credits with a Negative impact on the SDGs. In addition to the universe screening, our credit analysts integrate ESG factors in their analysis of the companies fundamental credit quality.


Description


Since the United Nations defined its Sustainable Development Goals (SDGs) in 2015, investors are looking at how best to contribute to the realization of these goals through their investments whilst maintaining a good return. Driven by this new approach to sustainable investing, Robeco has developed a proprietary SDG framework that measures the impact a specific corporate has on the 17 UN SDGs.   
 
Based on this framework, the SDG Credit Income strategy applies a screening process to select issuers that contribute to realizing the SDGs. The investable universe  is composed only of issuers that have either a positive or neutral impact on the SDGs. The SDG screening enhances the risk-return profile by limiting downside risks and avoiding defaults.

Key highlights of the SDG Credit Income strategy are:
  • Multi-asset credit strategy focused on generating an attractive income through the cycle 
  • Credit team has a long experience with assessing credit cycles through Credit Quarterly Outlook sessions
  • Bottom-up approach to find the best credit income ideas
  • Low-turnover strategy with a focus on short-dated credits, average duration between 3-5 years
  • Investing in companies that positively contribute to the SDGs
  • SDG Universe screening enhances the risk-return profile by limiting downside risk and avoiding defaults
  • Excellent and consistent performance records across different credit classes
The following are corporate activities that are screened out.
                                                             Company revenue threshold
  • Alcohol                                     Production 5% ; Retail sales 10% 
  • Armaments                              Production 0% 
  • Fossil fuels                              Thermal coal 10% 
  • Gaming                                     Production 5% 
  • Pornography                            Production, Services, Print 5% 
  • Tobacco                                    Production and key parts 0%
  • Global compact breaches       Own operations, supply chain 0%
  • Controversial Weapons          Anti-personnel mines, cluster munitions, chemical, biological, depleted uranium & nuclear weapons 0% 
  • Palm Oil                                   Non-RSPO certified, production 20%
  • Military contracting                Weapon systems, tailor-made components 5%
  • Nuclear Power                         Production electricity utilities 30%

Please refer to Robeco's exclusion policy: https://www.robeco.com/docm/docu-exclusion-policy-and-list.pdf

Other products certified by the Responsible Investment Association Australasia (RIAA)

Robeco Multi Factor Absolute Return Fund - Class B

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