Fixed income

An asset class that is less volatile than equities and often used to diversify an investment portfolio.

Investing in bonds is a medium- to long-term financial investment, offering potential for gain and a level of risk that varies depending on the characteristics of the bond concerned.

Bond expertise lies at the heart of DNCA’s investment approach. Developed over successive market cycles, it is built on active and flexible management, underpinned by in-depth analysis of issuers and macroeconomic environments. It spans the entire fixed-income universe, from government bonds to corporate credit.

This expertise is reflected in a range of strategies designed to meet investors’ diverse objectives and constraints.

A bond must be looked at not only from the perspective of its return but also in terms of issuer risk and the risk of changes in interest rates.

Pascal Gilbert, Bond Manager

A broad universe of instruments

Typically viewed as less risky than equities, bonds offer steady returns but are sensitive to changes in interest rates.

Government bonds
Bonds issued by a government to finance its expenditures.
Corporate bonds
Bonds issued by a private company.
Convertible bonds
They allow investors to take part in rising equity markets while benefiting from relative protection in the event of a decline, thanks to their bond component.
Inflation-linked
They have a principal and an interest rate indexed to inflation. The interest rate is generally lower than that of fixed-rate bonds with the same maturity. The coupon is revalued so that its value over time remains the same as that intended at issuance.

The pillars of our fixed-income management

Issuer selection
Fundamental analysis of issuers, to hold only quality bond signatures.
Active sensitivity management
Actively steering duration and rate sensitivity through the cycle.
Macro anticipation
Anticipating the macroeconomic backdrop and monetary policy to seize opportunities.

Our funds