Alma Selwood Euro High-Grade
Cumulative Performance (%)
Fund Inception 15 September 2021
The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Strategy & Manager
The Fund is managed by Selwood Asset Management (France) SAS (“Selwood”), which seeks to implement a strategy for the Fund focusing on European investment grade credit instruments and aims to provide an alternative to traditional cash credit solutions through predominantly deploying senior tranches of CDS index-related instruments. Selwood has also sought to incorporate certain risk mitigation criteria for the Fund seeking to a lower capital consumption under Solvency II*.
*No representations or guarantees as to compliance with Solvency II are being made by the Selwood. Prospective and existing investors need to complete their own analysis of Solvency II requirements.
Selwood Asset Management group was founded in the United Kingdom by Mr Gharred in 2015 as an asset management firm, specialising in non-directional credit strategies. In 2020, Selwood Asset Management (France) SAS was incorporated under the leadership of Mr Merle and Mr Labelle.
Selwood Asset Management (France) SAS is focused on managing long bias fixed income funds and seeks to develop products which utilise credit indices and derivatives.
Mathieu is a fixed income trader with 20 years’ of industry experience. He has a broad expertise in terms of instruments having been market maker on structured credit and derivatives, government bonds and covered bonds.
Prior to joining Selwood, Mathieu was a senior trader at Credit Agricole CIB in London where he spent over 15 years.
During his tenure at Credit Agricole CIB, Mathieu developed extensive knowledge in Rates and Credit Trading, in both Flows and Structured. He gained expertise in identifying business opportunities, following and analysing market behaviour and leveraging a deep understanding of financial industry to drive account and trading success.
Mathieu holds a bachelor of Physics from University of Rouen Normandie, an ITM diploma (Master) from CFPB. He was authorised by the UK’s FCA as approved person between 2005 and 2016 (MAL01151).
Statistics & Commentary
The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
Sector Breakdown as a % of AUM
as a % of AUM
as a % of AUM
as a % of AUM
Investment Manager's Commentaryas of
Market Review and Outlook
Risk appetite optically improved through July as credit indices were tighter and equities rallied. However, this belied the huge intra-day/week volatility where iTraxx Main closed 18.5bps tighter, but traded in a 28bps range through the month. Geopolitical risks remained elevated in Europe. Italian PM Draghi resigned as his coalition government finally fractured, which caused the 10Y Bund/BTPs basis to widen significantly peaking at 250bps as new elections were expected in Sept. The integrity of gas supply to the EU bloc was also in doubt as the key Nord Stream 1 pipeline was temporarily closed for routine annual maintenance. The pipeline re-opened as expected with initial flows matching the pre-maintenance capacity, but this was swiftly reduced by 50% shortly after. Gas exposed single names, as a consequence, underperformed. Central banks were active with the ECB raising rates for the first time since 2011, but by a larger than expected +50bps. Details on how to tackle possible sovereign fragmentation (TPI), was not as well received and BTPs underperformed. The FOMC continued its monetary tightening, raising rates by another +75bps. Chair Powell did indicate that future hikes would be data dependent, thereby effectively removing forward guidance. On the macro data front, inflation remains a key driver of sentiment as CPI hit fresh highs in the EU (8.9%) and also the highest level in the US since 1981 (9.1%). The US entered a technical recession as 2Q GDP unexpectedly came in at -0.9% after a -1.6% contraction in 1Q. The USTs curve inverted aggressively as 2s10s ended July at -23bps (opened at +6.5bps). The fact that the US jobs market remains strong (Jun NFPs were a big beat at +372k vs. cons. +265k, while the unemployment rate remained at all-time low of 3.6%) alleviated concerns over the health of the US economy.
The strong performance of iTraxx Main has benefited our strategy. Rates continue to hold up very well, as the 5Y German dipped just below 50bps. With the ECB likely to continue increasing rates we keep a shorter duration (~3.4) than benchmarked cash bond portfolio.
Facts & Documents
Fund Domicile: Luxembourg
Fund Type: UCITS SICAV
Fund Launch: 15 September 2021
Base Currency: EUR
Depositary, Administrator, Transfert Agent: RBC Investor Services Bank S.A.
Dealing: Daily with a 2-days notice
Cut-off time: 3 pm CET
Management Company: Alma Capital Investment Management
Investment Manager: Selwood Asset Management (France) SAS
Countries where the fund is registered:
The information related to the integration of sustainability risks and to the potential adverse sustainability impacts at the sub-fund level can be found in the prospectus of the Fund.
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