Our funds

R-co Conviction Credit 12M Euro

(*) Inactive share

Fixed income Range : Conviction Region : Euro zone EUR

FR0010697482

Morningstar Rating™

as of 30/06/2024

Net Asset Value

135.64 €

(25/07/2024)

AUM (fund)

496.5 M €

(25/07/2024)

Performance

+2.05 %

(YTD) (25/07/2024)

Recommended investment horizon

1 year

Risk scale

2/7

Investment objective

R-co Conviction Credit 12M Euro aims to outperform the 75% [capitalized ESTR index + 0.085%] + 25% Markit Iboxx € Corporates 1-3, net of management fees, over the recommended investment horizon, with a portfolio invested in the different short-term bond market opportunities. From 23 December 2008 to 2 May 2013, this fund was a fixed maturity bond fund with a 2013 maturity. Since 2 May 2013, this fund is a short-term bond fund. Risk indicators and returns published since inception for few share classes are calculated from the last management change (2 May 2013).

Change in Net Asset Value

Past performance does not indicate future performance, and is not constant over time. Performance indicated is net of fees, calculated in the reference currency of the unit.

Performance by calendar year

This chart shows the fund’s performance as the percentage loss or gain per year over the last 10 years against its benchmark. It can help you to assess how the fund has been managed in the past and compare it to its benchmark

Inception date of the unit/share : 30/11/2020

Past performance is not a reliable indicator of future performance. Markets could develop very differently in the future. It can help you to assess how the fund has been managed in the past. Performance is shown after deduction of ongoing charges. Any entry and exit charges are excluded from the calculation.

* The R-co Conviction Credit 12M Euro sub-fund resulted from the merger by absorption of the R-co Conviction Credit 12M Euro FCP by the R-co 2 SICAV sub-fund of the same name on 30 November 2020. C EUR units of the R-co Conviction Credit 12M Euro FCP were created on 23 December 2008 and became C EUR shares of the SICAV’s R-co Conviction Credit 12M Euro sub-fund.

Performance as of 25/07/2024

Cumulative performance						Annualised performance
10 years	5 years	3 years	1 year	YTD	1 month	10 years	5 years	3 years
3.20%	3.14%	3.64%	4.48%	2.05%	0.50%	0.31%	0.62%	1.20%
2.61%	4.02%	4.54%	4.39%	2.28%	0.42%	0.26%	0.79%	1.49%

R-co Conviction Credit 12M Euro C EUR

(25% Markit iBoxx ™ € Corporates 1-3 TR) + (75% (ESTR OIS European Central Bank + 0.085%))

Past performance does not indicate future performance, and is not constant over time. Performance indicated is net of fees, calculated in the reference currency of the unit.

Risk indicators as of 25/07/2024

	Volatility		Ratios
	Fund	Reference index	Tracking-error	Information ratio	Sharpe ratio
1 year	0.64%	0.32%	0.34%	0.1214	0.8573
3 years	0.78%	0.55%	0.32%	-0.9241	-0.6853

Comments

30/06/2024

While the ECB made its first rate cut at the beginning of the month, volatility persisted in Europe amid political risk aversion following the dissolution of the French National Assembly. The German 10-year yield fell by 16bp to 2.51% while the OAT-Bund spread widened by 35bp to reach 82bp on 27 June, its highest level since 2012. The Italian 10-year also widened by 26bp to 157bp. In the United States, the drop in inflation and the first signs of an economic slowdown allow investors to envisage the possibility of a first rate cut in November. The US 10-year ended the month down 10bp at 4.40%.
European credit suffered from the French political context in June. Risk premiums rose 11bp for Investment grade, with the long part of the curve (+13bp for the 7-10 year) participating more in this movement than the short end (+6bp for the 1-3 year). Financials (+14bp) underperformed corporates (+9bp) following the correction of the subordinated banking (+24bp) and insurance (+26 bp) sectors, in particular French ones. Specifically, utilities (+14bp) and construction (+13bp) suffered the most while basic materials (+4bps) and chemicals (+6bps) were resilient.
The monthly performance remained positive, driven by the tightening of German rates. The IG index gained 0.67% while the performance of high yield, less correlated to sovereign rates, stood at 0.37%.
Against this backdrop, the fund posted a positive performance, generated on the one hand by the carry and on the other by the effect of the tightening of rates, which largely offset the widening of credit spreads. We benefited from inflows over the period, and we maintain our objective of increasing the portfolio’s sensitivity in order to take advantage of the rate cut cycle.

Summary Risk Indicator

Lower risk

Higher risk

Managers

Yann Roux

Fixed Income Portfolio Manager Specialisation: Money Markets & Short-Term Credit

See biography

Philippe Lomne

Fixed Income Portfolio Manager Specialisation: IG Credit IG & Crossover