Our funds

R-co Conviction Credit SD Euro

(*) Inactive share

Fixed income Range : Conviction Region : Euro zone EUR

FR0014006PM4

Morningstar Rating™

as of 31/08/2024

Net Asset Value

166.88 €

(03/10/2024)

AUM (fund)

495.6 M €

(03/10/2024)

Performance

+3.20 %

(YTD) (03/10/2024)

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 03/10/2024

Cumulative performance						Annualised performance
10 years	5 years	3 years	1 year	YTD	1 month	10 years	5 years	3 years
5.96%	3.33%	2.63%	5.82%	3.20%	0.69%	0.58%	0.66%	0.87%
8.47%	4.16%	3.16%	6.62%	3.83%	0.90%	0.82%	0.82%	1.04%

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 03/10/2024

	Volatility		Ratios
	Fund	Reference index	Tracking-error	Information ratio	Sharpe ratio
1 year	1.32%	1.34%	0.38%	-2.1338	1.4932
3 years	1.82%	1.86%	0.85%	-0.1654	-0.6185

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.
Despite a slight widening of risk premiums, the performance was positive, driven by the positive trend of yields and the portfolio’s internal return. We underperformed the benchmark slightly due to the lower sensitivity of the fund.

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