DNCA Invest
Flex Inflation
International Multi-strategies Bonds
Copier le code ISINPortfolio managers comments | December 2018
December 2018
Economic stats published in December reflected a worldwide economic slowdown across the US, the euro area and Asia, with the world composite PMI down 0.5 points to 52.7.
Oil prices fell again in December, ending the quarter down almost $20, the biggest drop since the fourth quarter of 2014. This drop should have a fairly substantial impact on inflation trends in 2019. However, looking to wages, figures continue to point to a sharp increase in the US, Europe and Japan, and this acceleration suggests that falling oil prices will only have a passing effect on inflation.
As expected across the...
Pascal Gilbert - François ColletText completed on January 02, 2019
NAV
99.18€
Risk indicator
Year-to-date performance
Annualized performance
since inception
Performance
2018
-2.13%
Volatility over 1 year
Recommended minimum investment horizon
Net assets
(At 2019-01-31)
Inception date
Fund Managers
Pascal Gilbert began his career in 1987 at Banque Fédérative du Crédit Mutuel as a prop trader. In 1998 Pascal joined Banque de Financement et de Trésorerie where as Head of Eurozone bond portfolio management. He then joined La Française in 2001 as Head of bond funds, he was in charge of a team of seven and he managed more than €15bn, including the Multistratégies Obligataires Fund which was rated 5 stars by Morningstar. He was ranked AAA by Citywire.
In September 2017, Pascal Gilbert joined DNCA Finance.
François Collet began his career in 2003 at Natixis Asset Management as a bond fund manager. He managed Natixis Oblivariable and set up Natixis Euro Inflation.
In 2006, François joined La Française as Deputy Head of bond portfolio management, he was more particularly in charge of the inflation theme. He managed five bond strategies with total assets under management of €2.6bn, including the Euro Inflation Fund which was rated 5 stars by Morningstar. He received a Lipper award in 2013.
In September 2017, François Collet joined DNCA Finance.
Performances
| PerfAt 2019-02-20 | YTD | 1 month | 3 months | 6 months | 1 year | 2 years | 5 years | Since | 2018 |
| DNCA Invest Flex Inflation | +1.08% | +0.80% | -0.30% | -1.76% | -0.02% | - | - | -0.82% | -2.13% |
| Bloomberg Barcl WorldGovt TR H | +1.19% | +1.53% | +1.73% | -0.82% | +0.71% | - | -2.62% |
Briefly
The investment process is made of the combination of several strategies including principally:
- a directional strategy aiming to optimise the performance of the portfolio based on interest rate and inflation expectations;
- an interest rate curve strategy aiming to exploit the variations of the spreads between long-term rates and short-term rates;
- an arbitrage strategy between, fixed-rate bonds and inflation-linked bonds to take advantage of the variations of the differential between the nominal rates and the real rates according to the anticipated growth and inflation outlook;
- an international strategy the aim of which is to take advantage of the opportunities offered by the OECD bond markets with an exposure to interest rates and inflation in these countries.
And secondarily:
- a credit strategy founded on the usage of bonds issued by the private sector.
The modified duration of the Sub-Fund will stay between 0 and 15, without any restriction on the modified duration of individual securities in the Sub-Fund.
What objective?
The Sub-Fund seeks to provide, over the recommended investment period of more than three years, a higher performance, net of any fees, than the Bloomberg Barclays World Govt Inflation Linked Bonds Hedged EUR (Bloomberg ticker : BCIW1E Index). Investors’ attention is drawn to the fact that the management style is discretionary.
What breakdown?
The Sub-Fund will at all times invest up to 100% of its total assets in floating-rate and/or nominal bonds and/or inflation-linked debt instruments within the following limits: OCDE issuers (up to 100% of its total assets), Public and semi-public sector (up to 100% of its total assets), Private sector (up to 50% of its total assets).
In exceptional market circumstances, the Sub-Fund may invest up to 100% of its total assets in negotiable debt securities, fixed-rate bonds, treasury bills, commercial papers, certificates of deposit and money market instruments.
The Sub-Fund may invest up to 10% of its net assets in units and/or shares of UCITS and/or AIFs.
The Sub-Fund will use all types of eligible derivatives instruments traded on regulated or OTC markets when these contracts are better suited to the management objective or offer lower trading costs. These instruments may include, but are not restricted to: futures, options, swaps, CDS on indices, CDS.
The Sub-Fund may invest in securities denominated in any currency. The non-base currency exposure may be hedged back to the the base currency to moderate the currency exchange risks which will not represent more than 10% of the total assets of the Sub-Fund.
The Sub-Fund may also use efficient management techniques such as temporary repurchase transactions, reverse repurchase transactions and securities lending.
For what type of investor?
The Sub-Fund is intended primarily for investors seeking a means to diversify their bond investments, articularly at a time when conventional bonds (fixed-rate) are exposed to a possible rise in interest rates and the inflation rate.
Which characteristics?
Pricing : Daily
Fund Legal Type : SICAV mutual fund governed by Luxembourg law
Country Of Domicile : LU
Min Subscription Amount :
Nil (Share B, Share N, Share ND)
200000 (Share I)
2500 (Share A)
50000000 (Share SI)
Min Subscription Shares :
None (Share B, Share I, Share N, Share ND, Share A, Share SI)
Subscription Fees : 2% max
Performance fee : 20% of the positive performance net of any fees above Bloomberg Barcl WorldGovt TR H with High Water Mark
The above information is not a confirmation of any transaction and does not comprise investment advice. Past performances are not a reliable indicator of future performances. Management fees are included in performances. Access to products and services presented may be restricted regarding certain persons or countries. Tax treatment depends on the individual situation of each investor. For full information regarding strategies and fees, please refer to the prospectus, KIID documents and other regulatory information available on this website or free of charge on demand from the investment management company’s registered offices.