Robeco launches global credits short maturity strategy

Robeco has launched a short duration version of their Global Credits strategy, which focuses on developed investment grade corporate bonds with a maximum of six years maturity.

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The Global Credits – Short Maturity strategy will use the Bloomberg Barclays Global Aggregate Corporate 1-5 years as its benchmark index.

Victor Verberk and Reinout Schapers will be lead portfolio managers, alongside the credit team. They will have the flexibility to invest in emerging credits, securitised credits and high yield, which the firm said will be mainly BB-rated.

Verberk said: “Short duration credits have historically delivered higher risk-adjusted returns than longer dated credits due to a low risk anomaly in credit markets.
“Turnover and transaction costs of a short duration credit fund are also lower, as short dated credits are typically held until maturity, this makes strategic allocation to short duration credit bonds in a fixed income portfolio a sensible thing to do.”

Robeco also said it will offer investors the same value, unconstrained approach to global credits investing while focusing on the shorter end of the market.

The fund will be available on main UK distribution platforms for both institutional and wholesale investors.

Nick Shaw, managing director and head of global financial institutions for Robeco, said: “We are delighted to launch our latest global credit strategy into the UK as Robeco continues to grow its presence and client base here.

“Our market leading capabilities in credits are increasingly recognised by clients in the UK and the launch of this fund represents an exciting new addition to our fund offering here”.

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