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DNCA Sérénité Plus
Short-term eurozone bonds
Art.8
The markets are easing further after a very turbulent April. Although still closely followed, D. Trump's announcements are having less and less impact. The EURO STOXX 50 NR is back to its pre-April 2 levels, or "Liberation Day" in the United States. The index rose by 5.4% over the month. In its wake, credit rose by +0.5% and +1.4% respectively in the investment-grade and high-yield segments, and the short-term bond index by +0.15%.

DNCA Sérénité Plus continued its good momentum over the month (+ 0.32%), reaching+ 1.58% since the beginning of the year.

Within the portfolio, Abertis, Iberdrola, Rabobank and British Telecom are exercising the early redemption option on their hybrid debt, as expected. For valuation reasons, the Ethias 1/26 line has been sold, while the AT1s in the Intesa and Commerzbank portfolios have been reinforced. Sabadell is back in the portfolio via an AT1 and a Tier 2 with a call of less than one year, with both bonds offering a strong incentive for the issuer to redeem early. The primary market offers good investment-grade opportunities with longer maturities: Lundbeck 4 years, Equinix 4 years, RCI Banque 5 years, Piraeus Bank 3.5 years and Transdev 3 years. Following the market's return to less comfortable valuation levels, the government bond component was strengthened by the purchase of Spain 10/2030. Lastly, the high-yielding, high-quality companies SNF, IQVIA, Loxam and Wizz Air have been reinforced, as have the hybrids EDF and Veolia Environnement.

Duration was increased by all these operations and by the strengthening of the derivative position on 5-year Germany, reaching 1.5 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 82.06%.

The markets have regained all their optimism - and valuation - from before D. Trump's massive announcements. However, it's 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, with low overall credit risk and sensitivity revised upwards. In this way, our ability to intervene should the markets react in the coming weeks remains intact.
Footnotes

*The inception date of the Fund is 2011-01-18