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 33 Fossil fuels
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

It fully excludes:

  • Riaa icons 36 Armaments
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations

Overview

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's objective is to maximize current income. The fund will invest in a broad array of fixed income sectors and utilize income efficient implementation strategies. The fund takes explicitly 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 has sustainable investment as its objective within the meaning of Article 9 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 (i.e. Environmental, Social and corporate Governance) in the investment process, applies an exclusion list basis controversial behavior, products (including controversial weapons, tobacco, palm oil and fossil fuel) while avoiding investment in thermal coal, weapons, military contracting and companies that severely violate labor conditions, next to engaging. All currency risks are hedged. The investment policy of the fund is not constrained by a benchmark. This share class of the fund will distribute dividend. You can purchase or sell units in the fund on any valuation day. This fund may not be appropriate for investors who plan to withdraw their money within 5 years.


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 a positive or at least 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 and total return through the cycle
  •    Low duration profile limiting the sensitivity of the portfolio to rising interest rates
  •    Strong sustainability focus by investing in companies that positively contribute to the SDGs
  •    SDG Universe screening enhances the risk-return profile by limiting downside risk and avoiding defaults
  •    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
  •    Excellent and consistent performance records across different credit classes
The following are corporate activities that are screened out.
                                                           Company revenue threshold
  • Global compact breaches      Own operations, supply chain 0%
  • Controversial Weapons          Anti-personnel mines, cluster munitions, chemical, biological, depleted uranium & nuclear weapons 0% 
  • Tobacco                                   Production and key parts 0%
  • Palm Oil                                   Non-RSPO certified, production 20%
  • Military contracting                Weapon systems, tailor-made components 5%
  • Firearms                                  Production 0% 
  • Fossil fuels                              Thermal coal 10%, Oil sands 10%, Artic drilling 5% 
  • Nuclear Power                         Production electricity utilities 25%
  • Alcohol                                    Production 5% ; Retail sales 10% 
  • Gambling                                 Production 5% 
  • Adult entertainment              Production, Services, Print 5% 
  • Cannabis                                  Production 5%; Retail 10%
Please refer to Robeco's exclusion policy: https://www.robeco.com/docm/docu-exclusion-policy-and-list.pdf

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