DNCA Invest Alpha Bonds
International Multi-strategies Bonds
Art.8
Key points
Focus on multi-strategy, flexible and international bond management.
- Flexible and international management, active management of sensitivity between [-3 ; +7].
- A dynamic allocation using a wide range of ESG bond strategies.
- An investment process that combines analysis of the macroeconomic environment and valuations with rigorous risk management.
Managers comments February 2025
NAV
€129.27
Risk indicator
Lower risk
Higher risk
Risks :
- Risk of capital loss
- Interest-rate risk
- Risk relating to discretionary management
- Credit risk
- Inflation rate depreciation risk
- Inflation risk
- Counterparty risk
- Risk related to investing in speculative securities
- Risk of investing in derivative instruments as well as instruments embedding derivatives
- Convertible securities risk
- Specific Risks linked to Convertible, Exchangeable and Mandatory Convertible Bonds
- Risk related to exchange rate
- Liquidity risk
- High volatility risk
- Equity risk
- ESG risk
- Sustainability risk
performance and volatility
as of 2025-04-28
Year-to-date performance
+1.93%
+4.23%
+4.93%
+15.54%
3.20%
Footnotes
*The inception date of the Fund is 2017-12-14
It is in this climate of volatility that, for the first time, American exceptionalism is showing signs of fragility. So far, nothing material, but the gradual deterioration of confidence indicators in February is intriguing. This concern is also weighing on households, both through a job market that continues to normalize and through consumption that is surprisingly down. In Germany, the victory of the CDU/CSU is raising hopes of fiscal stimulus and could lead to an improvement in the economic outlook for the Old Continent.
Once again, February showed us that the disinflation process could surprise us and that the road to 2% would be a long one. In the short term, however, inflation should gradually fade into the background and converge towards the central banks' target, aided as ever by falling commodity prices.
The highlight of February was the decline in monetary expectations in the United States. Markets are now expecting three rate cuts from the Fed, two more than at the end of January. In Europe, the downward cycle seems clearer, but it's hard to imagine the European Central Bank dropping below its current expectations (1.8% by the end of 2025).
The tax issue remains at the heart of the debate. In the developed world, only Germany can afford more spending and debt. This will be a priority for the newly elected government. In the rest of the G10, the question of sobriety seems to be taking precedence, while governments do not yet seem able to find ways of encouraging growth without additional debt.
In management, the improvement in valuations prompted us to take profits on our short position in French interest rates and to increase the portfolio's sensitivity. The good performance of US rates relative to their European counterparts made a positive contribution to the strategy's performance in February. We start March with an interest-rate sensitivity up 0.6 to 3.3. The risk budget remains unchanged (1.79% volatility). Finally, on the currency front, we continued to strengthen our long yen position, mainly against the Swiss franc.