Rothschild & Co Asset Management launches an innovative investment strategy on the High Yield euro market
Rothschild & Co Asset Management is expanding its Fixed Income funds range with the launch of R-co Conviction High Yield SD Euro, a fund invested in the 1-3 year High Yield1 bond universe.
Short-duration High Yield bonds have historically performed close to those of the High Yield market, with a lower level of volatility2, enabling them to achieve a better Sharpe ratio3 across cycles. This is due to a better return on credit risk on the short end of the curve.
To take advantage of this excess risk premium, R-co Conviction High Yield SD Euro adopts a flexible approach, focusing on selective exposure to quality assets, while paying particular attention to diversifying specific risks. This new fund also offers an innovative approach to credit risk management4, using credit derivatives3 to replace default risk with market risk.
“Fixed income management is one of our company's longstanding areas of expertise, with almost €20 billion under management5. High Yield portfolio management is one of the pillars that we are strengthening in line with the development of the market”, says Didier Bouvignies, General Partner & CIO. Emmanuel Petit, Partner & Head of Fixed Income, adds, “We have always considered Fixed Income as a performance driver in their own right. The characteristics of this asset class are particularly relevant for diversifying the sources of return in an overall allocation.”
This fund is currently distributed in France.
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Find out more:
Rothschild & Co Asset Management
Muriel Helvadjian
Tel: +33 1 40 74 49 24
muriel.helvadjian@rothschildandco.com
Marie Duverne
Tel: +33 1 40 74 14 95
marie.duverne@rothschildandco.com
(2) Source: Rothschild & Co Asset Management. Data calculated from 31/01/2014 to 31/07/2024.
(3) Measure of the difference between the performance of a portfolio of financial assets and the rate of return on a risk-free investment, divided by the standard deviation of its profitability defined by its volatility.
(4) Financial instrument enabling investors to gain exposure to the credit market without needing to own the underlying asset directly.
(5) Source: Rothschild & Co Asset Management, 30/09/2024.
