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Robeco High Yield

Fund Manager Top Pick for 2012!

This fund has been selected by Robeco Investment Managers as a Top Pick Fund for 2012.

Why do the Investment Managers think it has good growth and investment potential?

Robeco's High Yield Bonds fund offers:

  • Pure, global exposure to corporate High Yield markets
  • One of the larger (over EUR 1.8 billion) global High Yield funds with strong track record in top-3 of our peers on 3- and 5-year (10.5% and 6.8% annualized respectively) record, and one of the few to boast an over 10-year history (7.8% annualized; outperformance on 3-, 5- as well as 10-yr basis).
  • Morningstar Rating ****
  • Not exposed to Emerging debt nor currency risks

Key points:

We've had Fund Manager Sander Bus on board since inception of our high yield strategy in 1999, and since 2001 as the lead manager. We adopt a conservative approach with focus on high quality bonds and avoid highly indebted companies.

We don't limit our investment universe to just liquid high yield bonds, but have a proprietary model that can profit from small cap issuers that have outperformed large cap issuers significantly dating as far back as the early 1990s.

To help Robeco High Yield Bonds outperform we are committed to avoiding price drops (not defaults, as that will impact performance) and managing global credit in an integrated way, instead of regionally with a US team and a European team.

Benefits:

Companies and sectors are analysed in their true global context, and we can profit from very attractive cross-currency issuance that is often overlooked or mispriced.

We also boast one of the largest, most experienced European credit teams with six credit portfolio managers, 10 credit analysts and 3 quantitative researchers and career analysts with high level company knowledge, giving us a sustainable competitive edge.

What is the fund objective?Top Picks 2012

The Sub-fund aims to provide long-term capital growth. It invests at least two-thirds of its total assets in bonds, asset backed securities and similar fixed income securities with a rating of BBB+ or equivalent or lower by one of the recognized rating agencies, or with no rating.

The Sub-fund may not invest more than 10% of its total assets in equities or other participation rights, more than 25% of its total assets in convertible bonds and more than one third of its total assets in money market instruments.

To find out more please see the prospectus.


What is the fund's investment strategy?

Robeco High Yield Bonds invests globally in corporate high-yield bonds. In our investment process we use four different performance drivers:

  1. Top-down market view (beta overlay)
  2. Large cap issuer selection and leveraged buyouts
  3. Small cap issuer selection
  4. Investing in 'opportunities' (such as new issues)

Given the diversity of the high yield market we believe that the combination of these performance drivers with both fundamental and quantitative research techniques produces the best investment results.

Robeco High Yield Bonds does not pursue either an active currency policy (all currency risks are hedged into the euro) or an active duration policy. Risk management is fully integrated in the investment process, to ensure that positions always meet predefined guidelines.


Who is the Fund Manager?

Sander Bus is Head of the Credit Team and manages our high yield portfolios. Before joining Robeco in 1998 Sander worked for our parent company Rabobank as a Fixed Income Analyst for three years.

He holds a Master's degree in Financial Economics from Erasmus University, Rotterdam, became a CFA charter holder in 2003 and is registered with the Dutch Securities Institute. Sander has been active in the industry since 1996.

Who is Robeco?

Robeco logoRobeco, established in Rotterdam in 1929, offers investment products and services to institutional and private investors worldwide. It has around EUR 135 billion in assets under management (at 31 December 2009).

Robeco advocates responsible investing. Environmental, social and governance factors are integrated into the investment processes, and there is an exclusion policy in place. Robeco makes active use of its voting right and enters into dialogue with the companies in which it invests. The product range encompasses equity and fixed-income investments, money-market funds and alternative investments, including private equity, hedge funds and structured products. The various strategies are managed from Rotterdam (head office), Boston, Hong Kong, New York, Paris and Zurich.

To service institutional and business clients, Robeco has offices in Bahrain, Belgium, Greater China (Mainland, Hong Kong, Taiwan), France, Germany, Japan, Korea, Luxembourg, Spain, Switzerland and the United States. Robeco has a banking license in France and the Netherlands, where it can sell its products straight to private clients.

Robeco holds a 100% interest in Corestone (Zug, Switzerland), Harbor Capital Advisors (Chicago, USA) and Transtrend (Rotterdam, the Netherlands). Robeco also holds a majority interest in SAM Group (Zurich, Switzerland), a 49% interest in Canara Robeco Investment Management (Mumbai, India) and a 40% interest in AIM (Rijmenam, Belgium).

Robeco is part of Rabobank Group, one of the few privately owned banks in the world with the highest credit ratings from Moody's and Standard & Poor's. Furthermore, within the banking sector, Rabobank is one of the global leaders in terms of corporate social responsibility and sustainability.

As at 4 August 2010

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Costs

Robeco allows distributors to charge 5% for this fund (as per prospectus). At RaboDirect you will only pay 0.75% entry fee and 0.75% upon exit. We never charge for unexecuted or cancelled orders or for that matter cost of account maintenance.

Warning: Past Performance is not a reliable guide to future performance. The value of your investment may go down as well as up. Some Investment Funds may be affected by changes in currency exchange rates.

* Funds frequently bought together: This is for the information of our customers, and potential customers, based on general customer investment patterns, and does not constitute advice from us that you invest in any particular fund or a recommendation from us that a particular fund is suitable for you.

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