Our funds
R-co Conviction Credit SD Euro
(*) Inactive share
Net Asset Value
164.74 €
(25/07/2024)
AUM (fund)
501.5 M €
(25/07/2024)
Performance
+1.88 %
(YTD) (25/07/2024)
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 25/07/2024
| Cumulative performance | Annualised performance | |||||||
|---|---|---|---|---|---|---|---|---|
| 10 years | 5 years | 3 years | 1 year | YTD | 1 month | 10 years | 5 years | 3 years |
| 4.53% | 1.94% | 1.25% | 4.89% | 1.88% | 0.60% | 0.44% | 0.39% | 0.42% |
| 7.24% | 2.37% | 1.42% | 5.45% | 2.16% | 0.75% | 0.70% | 0.47% | 0.47% |
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 25/07/2024
| Volatility | Ratios | ||||
|---|---|---|---|---|---|
| Fund | Reference index | Tracking-error | Information ratio | Sharpe ratio | |
| 1 year | 1.31% | 1.30% | 0.36% | -1.5095 | 0.7274 |
| 3 years | 1.80% | 1.83% | 0.84% | -0.0636 | -0.7324 |
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%.
In this context, the performance was positive, driven by high carry and the contraction of German rates. These two effects more than offset the widening of short-term credit spreads, which outperformed the rest of the curve. We increased our position in Italian bank Unicredit and took part in the issue of tyre manufacturer Pirelli.
Summary Risk Indicator
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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
See biographyFeatures
- ISIN code : FR0014006PM4
- Legal form : SICAV
- AMF Classification : Bonds and other debt securities denominated in euros
- Inception date : 12/11/2019
- Management company : Rothschild & Co Asset Management
- Custodian : Rothschild Martin Maurel
- Dividend Policy : Accumulation
- Reference indicator : 100% Markit iBoxx ™ € Corporates 1-3 TR
- 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 : 1/100000th equities
- Management fees (maximum) : 0.6%
- Entry fee (maximum) : 2%
- Exit fee (maximum) : None
- Performance fee : None