Funds that offer a world of opportunities

AIMING TO DELIVER ATTRACTIVE INCOME WITH REAL WORLD IMPACT

The Robeco SDG Credit Income Fund (AUD Hedged) (Fund) aims to maximise current yield and income and seeks to meet the needs of investors who are targeting a consistent level of income. In addition, the Fund applies a screening process to select securities that contribute to realising the UN Sustainable Development Goals (’SDGs’).

The Fund is actively managed by Robeco’s experienced investment team, whose well-structured and disciplined investment approach combines top-down and bottom-up research to help manage risk and identify the best investment opportunities. With the flexibility to invest in all fixed income segments, the Fund has the potential to provide an attractive and stable income throughout the credit cycle.

Key Benefits

• Flexibility to invest in all fixed income segments, including investment grade, high yield and emerging market corporate bonds.
• The Fund aims to maximise current yield and income and seeks to meet the needs of investors who are targeting a consistent level of income.
• Can offer diversification benefits when employed in conjunction with other asset classes and investment styles.
• The Fund has high sustainability standards and strong alignment with the UN Sustainable Development Goals.
• Managed by a highly experienced, stable investment team with diverse backgrounds and experience.

Key Risks

• Credit Risk – the issuer of a fixed income security (or counterparty) may be unable to meet its obligations to pay interest and principal when it is due.
• Currency risk – the Fund will invest in global securities, which are denominated in foreign currencies that will give rise to foreign currency exposure. This means that the Australian dollar value of these investments will vary depending on changes in the exchange rate.
• Derivatives risk – derivatives may be used for hedging and for the efficient management of the Fund’s portfolio, however are not intended to be used to gear (leverage) the Fund. Derivative risk is the risk that a derivative cannot be traded or the risk that the counterparty to the derivative cannot meet their payment obligations when they are due.
• Emerging market securities risk – Some of the Underlying Fund’s (in which the Fund invests) investments may be in emerging markets. Investments in emerging markets may involve a higher than average risk. The below emerging market characteristics could result in a lower level of investor protection and higher risk of incurring losses as compared to investing in more developed markets. In particular, emerging markets may have,
  • less government supervision of stock exchanges;
  • less rigorous financial reporting, auditing and disclosure requirements;
  • less reliable or efficient trading and settlement systems;
  • less liquid or efficient markets, making it more difficult to buy and sell securities;
  • greater restrictions on foreign investments; or
  • greater government involvement or influence on a country’s economy and investment returns of companies.

• ESG Strategies and Policies risk – The use of ESG criteria and exclusionary screens may affect the Underlying Fund and the Fund’s investment performance and, as such, the Underlying Fund and the Fund may perform differently compared to similar funds that do not use such criteria. The Manager has developed its own policies and processes to manage and implement its ESG screening and criteria. There is a risk that these policies and processes are not drafted comprehensively, or updated in a timely manner to reflect an ESG development, or that there is a system or human error or oversight which impacts the correct implementation of the policy or process. Each of these risks, if realised, may impact the ESG credentials of the Fund or Underlying Fund.
• Interest rate risk – changes in interest rates can affect the value and returns of investments in the Fund. As the Fund invests in Australia and overseas, it will be sensitive to both domestic and international interest rates.
• International investments risk – if the Fund has exposure to international financial products additional risks may apply, including differences between countries relating to accounting, auditing, financial reporting, taxation, government regulation, securities exchanges and transactional procedures and foreign markets may have different levels of liquidity, pricing availability, settlement and clearance procedures.
• Underlying Fund risk – The Fund may implement some or all of its investment strategy through an investment in the Underlying Fund. The Fund and the Underlying Fund are managed as separate entities, with separate investment objectives and investment strategies. No guarantee can be given that the underlying fund will meet its investment objective, continue to be managed according to its current investment strategy or be open to investments in the future. Changes to the Underlying Fund may be made without unitholder approval. Should the Underlying Fund change its investment objective or investment strategy, we will review such changes with consideration to the investment objective and strategy of the Fund. Further, if the Underlying Fund were to be suspended, closed or terminated for any reason, the Fund would be exposed to those changes.