Our funds
R-co Conviction Credit Euro
Net Asset Value
456.59 €
(20/06/2024)
AUM (fund)
2896.7 M €
(20/06/2024)
Performance
+1.55 %
(YTD) (20/06/2024)
Recommended investment horizon
3 years
Risk scale
2/7
Investment objective
Change in Net Asset Value
Performance by calendar year
Performance as of 20/06/2024
Cumulative performance | Annualised performance | |||||||
---|---|---|---|---|---|---|---|---|
10 years | 5 years | 3 years | 1 year | YTD | 1 month | 10 years | 5 years | 3 years |
9.98% | 1.74% | -3.88% | 7.21% | 1.55% | 0.42% | 0.96% | 0.35% | -1.31% |
9.48% | -4.42% | -7.36% | 6.14% | 0.38% | 0.25% | 0.91% | -0.90% | -2.51% |
Risk indicators as of 20/06/2024
Volatility | Ratios | ||||
---|---|---|---|---|---|
Fund | Reference index | Tracking-error | Information ratio | Sharpe ratio | |
1 year | 3.15% | 3.69% | 0.81% | 1.3834 | 1.0592 |
3 years | 4.28% | 5.04% | 2.15% | 0.554 | -0.6809 |
Comments
31/05/2024
Rates rose in the eurozone in May in a volatile environment, with investors facing statements from central bankers wanting to cut rates for the first time despite the publication of better-than-expected economic data. Uncertainty remains regarding the pace at which the ECB will ease its monetary policy after June, with a second cut expected by the end of the year. The German 10-year ended the month up 8bps at 2.66% while the US 10-year ended the month down 17bps at 4.50%. The latest inflation figures and the downward revision of growth for the first quarter indicate a first rate cut in November or December.
The tightening trend on European credit continued in May, driven by the most speculative securities. Risk premiums were down 2bp for investment grade, with the middle of the curve (-3bp for the 3-5 year) participating more in this movement than the short and long parts, which were stable (0bp for the 1-3 year and the 10+). Financials (-6bp) outperformed Corporates (+1bp), dragged down by subordinated banking and insurance (-16bp and -14bp). The oil and gas sector posted the best performance (-2bp) in the segment while basic materials (+4bp) and chemicals (+2bp) widened. However, the IG index was up 0.22% over the month, while the sharp compression of risk premiums in high yield reached 18bp, enabling the segment to post a marked outperformance (+0.95%).
Against this backdrop, we outperformed our benchmark by a wide margin in May thanks in part to our underexposure to duration and further compression in risk premiums. We slightly increased our position on subordinated financials, which also contributed to the outperformance this month, with in particular the purchase of two perpetual bonds Santander and Erste Bank.
Summary Risk Indicator
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Managers
Emmanuel Petit
General Partner, Head of Fixed Income Specialisation: IG Credit & Crossover
See biographyPhilippe Lomne
Fixed Income Portfolio Manager Specialisation: IG Credit IG & Crossover
See biographyFeatures
- ISIN code : FR0007008750
- Legal form : SICAV
- AMF Classification : Bonds and other debt securities denominated in euros
- Inception date : 08/11/2019
- Management company : Rothschild & Co Asset Management
- Custodian : Rothschild Martin Maurel
- Dividend Policy : Accumulation
- Reference indicator : 100% IHS Markit iBoxx EUR Corporates Total Return EUR
- Valuation : Daily
- Latest time for subscriptions-redemptions : 12:00pm
- Applicable Net Asset Value : Next NAV
- Settlement (Settlement date) : NAV + 2
- Minimum initial subscription : 2500 EUR
- Subsequent subscriptions : 1/10000th equities
- Management fees (maximum) : 0.71%
- Entry fee (maximum) : 2%
- Exit fee (maximum) : None
- Performance fee : None