Paris based boutique DNCA Investments, owned by Natixis, is to merge two of its fixed income funds domiciled in France, InvestmentEurope has learned.
As from 1 August 2016, DNCA Rendement Sud 2017, which invests in convertible and traditional bonds denominated in euros and issued by private or public issuers mostly headquartered in Southern Europe (Italy, Spain, Portugal, Greece) with maturity ending 31 December 2017, will roll into DNCA Sérénité Plus.
DNCA Rendement Sud 2017 had €11m in assets under management as of 30 June 2016.
With AUM of €257m as at end June 2016, DNCA Sérénité Plus aims to outperform its benchamark FTSE Mts Emu Gov Bond 1-3 years over 18 months.
It invests in convertible and traditional bonds denominated in euros and issued by private or public issuers. Howewer, it differentiates from DNCA Rendement Sud 2017 by being exposed to equity markets at a maximum of 10% through the selection of funds or direct line investments.
Also the fund can trade on both derivatives and futures markets and remains unconstrained in geographical and sectorial investments as well as bonds ratings.
Lead portfolio manager on DNCA Sérénité Plus is Philippe Champigneulle, who also headed DNCA Rendement Sud 2017. Adrien Le Clainche, Romain Grandis and Baptiste Planchard work alongside Champigneulle.
The merger has been approved by French market regulator AMF.
DNCA Investments specified that the DNCA Rendement Sud 2017, launched in September 2012, had delivered gross returns of 5.5% per annum (4.2% net p.a.) as at end March 2016.
The firm estimated gross returns of the fund from end March 2016 to maturity (December 2017) at 5.11% (3.81% net p.a.).
DNCA Investments had €19.7bn in assets under management as at end May 2016.