Our funds

R-co Conviction Credit Euro

Fixed income Range : Conviction Region : Euro zone EUR

FR0007008750

Morningstar Rating™

as of 31/08/2024

Net Asset Value

472.27 €

(03/10/2024)

AUM (fund)

3056.3 M €

(03/10/2024)

Performance

+5.03 %

(YTD) (03/10/2024)

Recommended investment horizon

3 years

Risk scale

2/7

Investment objective

R-co Conviction Credit Euro is invested in private corporate bonds. Its investment universe is essentially composed of Investment Grade securities. R-co Conviction Credit Euro seeks to outperform the Markit iBoxx™ € Corporates index over the recommended investment horizon. The Markit iBoxx™ € Corporates index comprises all euro-denominated fixed interest bonds issued by private and public companies for an amount equivalent to at least EUR 500m.

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 : 08/11/2019

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.

* This sub-fund of the SICAV resulted from the merger by absorption of the R-co Euro Crédit FCP on 8 November 2019. C EUR units of the FCP were created on 22 February 1997 and became C EUR shares of this sub-fund.

Performance as of 03/10/2024

Cumulative performance						Annualised performance
10 years	5 years	3 years	1 year	YTD	1 month	10 years	5 years	3 years
13.94%	4.31%	-0.97%	10.68%	5.03%	1.16%	1.31%	0.85%	-0.32%
10.98%	-2.55%	-4.33%	10.05%	3.84%	1.29%	1.05%	-0.52%	-1.46%

R-co Conviction Credit Euro C EUR

100% IHS Markit iBoxx EUR Corporates Total Return EUR

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 03/10/2024

	Volatility		Ratios
	Fund	Reference index	Tracking-error	Information ratio	Sharpe ratio
1 year	3.01%	3.52%	0.77%	0.6955	2.263
3 years	4.33%	5.09%	2.15%	0.5417	-0.5358

Comments

31/08/2024

Rates fell sharply at the beginning of the month, with US employment figures raising fears of a more pronounced slowdown in the economy. Better data for growth and jobless claims in the United States in the following weeks mitigated this trend, including in Europe. The US 10-year ended down 13bp at 3.90% after hitting a low of 3.79%. The German 10-year ended at 2.30%, stable over the month, after reaching 2.17%. The drop was more pronounced for short-term rates, which led to a steepening of the curves.
Spreads widened by 5bp for investment grade, in a uniform movement across the entire curve: +4bp for the 1-3 year, +5bp for the 7-10 year. Only the +10-year segment underperformed the other maturities, with +8bp. The utilities and real estate sectors held up well, with +0bp and +2bp, respectively, while insurers suffered on both senior debt, +8bp, and subordinated debt, +7bp. In contrast to the market, high yield narrowed by 13bp to 377bp and gained 1.12% over the month. Investment grade credit posted a weaker performance, +0.31%, driven by its carry and slightly lower rates.
The fund outperformed its benchmark index, driven by a tactical reduction in sensitivity during the market stress of 5 August and by the good performance of our diversification allocation in high yield, and on a few specific names. At the end of the month, after the good performance of credit spreads, we further reduced our exposure to subordinated financials.

Summary Risk Indicator

Lower risk

Higher risk

Managers

Emmanuel Petit

General Partner, Head of Fixed Income Specialisation: IG Credit & Crossover

See biography

Philippe Lomne

Fixed Income Portfolio Manager Specialisation: IG Credit IG & Crossover