Robeco has launched a new global fund for its head of investment grade credits to meet investor demand for diversified bond strategies, Citywire Global can reveal.
The Robeco Global Credits fund is Luxembourg domiciled and was formally launched on 4 June.
Speaking to Citywire Global, Verberk said: ‘It is designed as a very flexible total return fund. The fund is predominantly investment grade but it can also move into ABS and the covered bonds markets, as well as adding high yield and emerging markets where appropriate.’
It will invest at least two-thirds of its asset in non-government bonds and similar securities from around the world. Verberk will also be able to use derivatives for hedging purposes where appropriate.
Verberk will attempt to achieve higher yields than government bonds but without the high risks associated with the high-yield corporate bonds market.
In addition, Verberk said he intends to run the fund without a regional bias as he said a large number of global funds become overly weighted towards the US market due to its size.
‘When you look at the bulk of products in the market, you see an overwhelming amount of funds focused on the Anglo-Saxon markets. We see some funds with around 80% allocated to the US, so we are making sure there is no regional bias,’ he said.
It had been run as a segregated mandate for over three years and has now been launched as a wider available fund with €50 million in seed capital.
Verberk said the fund would complement the existing range of funds at Robeco, which include a host of funds covering the Euro area and global fixed income.
The fund is initially registered in Luxembourg but will be rolled out to other markets as client demand dictates. It will be benchmarked against the Barclays Global Aggregate – Corporates (EUR Hedged) index.