Our funds

R-co Conviction Credit SD Euro

(*) Inactive share

Fixed income Range : Conviction Region : Euro zone EUR

FR0014006PM4

Morningstar Rating™

as of 31/01/2024

Net Asset Value

163.64 €

(20/06/2024)

AUM (fund)

511.9 M €

(20/06/2024)

Performance

+1.20 %

(YTD) (20/06/2024)

Recommended investment horizon

3 years

Risk scale

2/7

Investment objective

R-co Conviction Credit SD Euro aims to outperform the Markit IBoxx€ Corporates 1-3 index over the recommended investment horizon. To do so, the fund's investment process combines top-down and bottom-up approaches in investing at least 80% in investment grade bonds and the rest in convertible bonds, high yield and mutual funds. Currency risk is accessory, with modified duration between 0 to 4. The fund's credit risk level is not pre-set but varies with maturities and the credit ratings of the chosen issues (high yield up to 10%). An issuer's rating is an estimate and not a guarantee of solvency.

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 : 12/11/2019

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 Crédit Horizon 1-3 FCP on 12 November 2019. C EUR units of the FCP were created on 11 December 2008 and became C EUR shares of this sub-fund.

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
3.70%	1.64%	0.70%	4.80%	1.20%	0.35%	0.36%	0.33%	0.23%
6.44%	1.72%	0.69%	5.17%	1.27%	0.43%	0.63%	0.34%	0.23%

R-co Conviction Credit SD Euro C EUR

100% Markit iBoxx ™ € Corporates 1-3 TR

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 20/06/2024

	Volatility		Ratios
	Fund	Reference index	Tracking-error	Information ratio	Sharpe ratio
1 year	1.35%	1.33%	0.36%	-0.9077	0.7507
3 years	1.80%	1.82%	0.84%	-0.0049	-0.7635

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%).
The fund posted a positive performance this month while short-term rates remained stable and a further contraction in risk premiums was profitable for the portfolio. Financials, in which we recently increased the weighting, also contributed positively. We continue to focus our purchases on quality issuers and senior financials such as TechnipFMC, Societe Generale and OTP Bank.

Summary Risk Indicator

Lower risk

Higher risk

Managers

Philippe Lomne

Fixed Income Portfolio Manager Specialisation: IG Credit IG & Crossover

See biography

Emmanuel Petit

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