DNCA Invest Eurose
Flexible asset
Art.8
Key points
Attractive, flexible, diversified management in euro zone equities and bonds
- Conviction-based management that takes corporate responsibility into account and excludes companies with the lowest ESG ratings.
- A wealth management approach through a portfolio that adapts to different market configurations via constant arbitrage between four main asset classes: traditional bonds, convertible bonds, equities and money market products.
- A flexible and diversified strategy aimed at selecting the securities considered most promising by the management team.
Managers comments May 2025
NAV
€190.28
Risk indicator
Lower risk
Higher risk
Risks :
- Interest-rate risk
- Credit risk
- Equity risk
- Risk of capital loss
- Risk of investing in derivative instruments as well as instruments embedding derivatives
- Specific Risk linked to ABS and MBS
- Distressed securities risk
- Risk of investing in speculative grade bonds
- Risk related to investing in speculative securities
- Specific risks of investing in contingent convertible bonds ("Cocos")
- Specific risks associated with OTC derivative transactions
- ESG risk
- Sustainability risk
- Risk related to exchange rate
- Risk relating to investments in derivative products
performance and volatility
as of 2025-07-07
Year-to-date performance
+6.21%
+2.94%
+6.77%
+21.72%
3.73%
Footnotes
*The inception date of the Fund is 2007-09-28
DNCA Invest Eurose continues its good momentum over the month (+ 1.48%), with+ 5.84% since the beginning of the year.
Equities made a positive contribution over the month, thanks in particular to the banking sector (BNP Paribas, Commerzbank and Société Générale) and Thales. During the month, the fund initiated a new position with the addition to its portfolio of Enel, Italy's leading integrated energy company (production and distribution), which operates not only in Italy, but also on the Iberian peninsula and in Latin America. With a P/E of less than 12x, the share is trading at a discount to its European peers, and the leverage of 2.5x remains healthy, enabling both the acceleration of network development and a dividend yield in excess of 5.8%. The fund has strengthened its positions in stocks under offer (Grupo Catalana Occidente, Just Eat Takeaway and Verallia), and entered 2 new positions (Covestro and Esso). International holdings continue to be reinforced on Commerzbank, CTP, Intesa SanPaolo, Siemens and wienerberger; conversely, French companies, mainly banks, are being reduced. At the end of May, the fund's net equity exposure stood at 23.9% (22.3% excluding carry trades), after increased hedging (3.2%).
In the bond portfolio, as the credit market becomes more expensive, risk is gradually being reduced, by reducing exposure to high-yield issuers (Ardagh Metal Packaging, ams-OSRAM, Forvia, Volvo Cars, Cheplapharm) and cyclical issuers (Traton, Südzucker), and by selling Iberdrola convertible bonds following their excellent post-issue performance. In the same vein, the Spain 2034 line has been strengthened, as has the pharmaceuticals sector (Ipsen, IQVIA, Lundbeck). Finally, the primary market enabled us to strengthen the financial sector, in particular Tier 2 (investment grade) with comfortable yields (Bankinter, ING, Lloyds Banking, AXA). Duration was increased by these transactions and by the strengthening of the derivative position on German 5-years, reaching 3.2 at the end of the month.
The extra-financial characteristics of the portfolio show a responsibility performance of /responsability_score and a sustainable transition exposure of 83.35%.
The markets have regained all their optimism - and valuation - from before D. Trump's massive announcements. However, it is hard to imagine that the customs measures already underway, the ongoing threats and, above all, the widespread uncertainty will not have an impact on the global economy. We prefer to maintain a cautious approach to management: net equity exposure (excluding carry trades) has been revised to 22%, and credit investments remain defensive, with duration increased to 3.2. Our ability to intervene should the markets react in the coming weeks remains intact.