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R-co Conviction Credit 12M Euro

(*) Inactive share

Fixed income Range : Conviction Region : Euro zone EUR
FR0010697482
Morningstar Rating™
as of 31/01/2024

Net Asset Value

133.93 €

(17/04/2024)

AUM (fund)

514 M €

(17/04/2024)

Performance

+0.76 %

(YTD) (17/04/2024)

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 17/04/2024

Cumulative performance Annualised performance
10 years 5 years 3 years 1 year YTD 1 month 10 years 5 years 3 years
2.22% 1.84% 2.30% 4.07% 0.76% 0.27% 0.22% 0.36% 0.76%
1.43% 2.67% 3.25% 4.06% 1.05% 0.34% 0.14% 0.53% 1.07%
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 17/04/2024

Volatility Ratios
Fund Reference index Tracking-error Information ratio Sharpe ratio
1 year 0.65% 0.35% 0.34% -0.0653 0.496
3 years 0.77% 0.53% 0.32% -0.9901 -0.7771

Comments

31/03/2024

Yields dipped slightly this month amid a volatile environment, with investors still unsure about upcoming central bank decisions. Mixed employment data in the US initially led to a drop in yields before higher-than-expected inflation dampened these expectations. Uncertainty over the Fed’s two major objectives did not prevent its members from reiterating their desire to reduce the key rate this year. The market is currently expecting fewer than three Fed cuts in 2024 and continues to expect three or four in the eurozone. The 10-year US and German yields dropped by 6bp and 15bp to 4.20% and 2.30%, respectively. Against this backdrop, Italy’s spread continued to tighten, reaching 138bp (-5bp) on the 10-year.
The performance of the European credit market was contrasted in March. Risk premiums continued to tighten in the investment grade segment, with -9bp. All sectors benefited from this momentum, primarily healthcare and real estate (-10bp each) and, to a slightly lesser extent, chemicals (-8bp). The trend was similar for financials, with a sharper compression for subordinated spreads (-12bp) than for senior bonds (-18bp). Conversely, the high yield segment widened by 7bp in March, negatively impacted by particular events, including at Altice and Ardagh. The best-rated debts thus outperformed speculative bonds in March, up 1.21% vs. +0.44%. Momentum was strong in the corporate primary market in March, with €30bn in IG issues and €6bn in HY.
In these conditions, the fund posted a positive performance. Our still moderate sensitivity safeguarded us against the rise in interest rates, while our more concentrated positioning on financials generated value. The fund benefited from subscriptions over the period and we are still working to increase the sensitivity as the rate-cut cycle approaches.

Summary Risk Indicator

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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

See biography

Features

  • ISIN code : FR0010697482
  • Legal form : SICAV
  • AMF Classification : Bonds and other debt securities denominated in euros
  • Inception date : 30/11/2020
  • Management company : Rothschild & Co Asset Management
  • Custodian : Rothschild Martin Maurel
  • Dividend Policy : Accumulation
  • Reference indicator : (25% Markit iBoxx ™ € Corporates 1-3 TR) + (75% (ESTR OIS European Central Bank + 0.085%))
  • Valuation : Daily
  • Latest time for subscriptions-redemptions : 12:00pm
  • Applicable Net Asset Value : Next NAV
  • Settlement (Settlement date) : NAV + 2
  • Minimum initial subscription : 1 equities
  • Subsequent subscriptions : 1/10000th equities
  • Management fees (maximum) : 0.5%
  • Entry fee (maximum) : 1%
  • Exit fee (maximum) : None
  • Performance fee : None

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