Alma Selwood Euro High-Grade
Alma Platinum IV Selwood Euro High-Grade is a long only European credit investment grade fund.
The fund’s management is delegated to Selwood AM France.
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 Strategy aims to deliver enhanced risk / returns by profiting from dislocations in the pricing of index-related credit instruments (iTraxx Main Europe). The Fund seeks to outperform standard Investment Grade Long Only cash allocations / ETF. The Fund is focused 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 risk mitigation criteria for the Fund, and seeks to lower capital consumption under Solvency II.
Selwood Asset Management is a London based fundamental credit investment manager, established in 2015 by Sofiane Gharred, a former partner at Chenavari and proprietary trader at Credit Agricole CIB. Created in 2020, Selwood Asset Management (France) SAS, is led by Guillaume Merle and Mathieu Labelle. The Firm is focused on managing long bias fixed income funds and seeks to develop products which utilise credit indices and derivatives.
CIO and Conducting Officer of Selwood Asset Management (France) SAS
Mathieu is a fixed income trader with 20 years’ industry experience. He has expertise across instruments, having been a 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. At Credit Agricole CIB, Mathieu developed extensive knowledge in rates and credit trading, in both flows and structured trading. 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).
Co-CIO of Selwood Asset Management (France) SAS
Thibault is a fixed income trader with 15 years’ of industry experience. He has a strong expertise in structured credit investments having been a Structured Credit Trader most of his career. Prior to joining Selwood, Thibault was a senior PM at Orchard Asset Management in London where he spent almost 6 years managing at peak a fund of circa EUR 1bn. Before that he spent 2Y at Christofferson & Rob as Director / PM to help build their structured credit derivatives fund dealing with Rec Cap transactions and acquiring portfolios of derivatives from core and non-core Bank divisions. He also worked several years in the banking industry at UBS as an Executive Director and Calyon – always as a Structured Credit Trader.
Thibault holds a Master of Science from London School of Economics and a degree from Ecole Polytechnique in France (Grande Ecole for Research and Engineering, specialisation in Economics and Applied Mathematics).
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.
Investment Manager's Commentaryas of 31/01/2024
Market Review and Outlook
The economy demonstrated greater resilience than analysts had anticipated, which heightened Central Bank concerns about the market’s expectations for cutting rates and when. Predictably rates were the first to be affected with the German 5-year yield increasing by 10 basis points to 2.05%, while the 2-year yield remained stable and the 10-year a steeper increase of 14 basis points. This led to a slight increase in the iTraxx Investment Grade index by 2 basis points and a depreciation of the Euro against the US Dollar by 2%.
The Central Bank meetings at the end of January further solidified the narrative that interest rates are likely to remain at their current levels for a longer period than the markets had initially expected. The previously positive momentum for interest rates and credit spreads came to a halt, evidenced by a continued decrease in the pricing of credit options and the MOVE index falling. This volatility measure hit its lowest level since January 2023. In January the primary market saw a significant surge in issuance activity, meeting investor demand and showing appetite for a potentially record-breaking year of total notional amounts to be issued. The month witnessed an impressive $700 billion of issuance, surpassing the records in 2023 and 2021. Notably, the new Spanish 10-year bond attracted a record order book of €138 billion. Italy, in addition to its traditional auctions surprisingly syndicated two deals and Greece marked its comeback to the syndication market with a 10-year issuance worth €4 billion, highlighting investor confidence in that sector.
We remain cautious, maintaining relatively conservative exposure levels (Equivalent Delta to ~2.96X on iTraxx Main), primarily due to uncertainties around the timing of the first-rate cut. Additionally, concerns persist about stagnant growth in Europe and now issues in the real estate sector. January marked a shift in analysts’ perspectives with the ‘hard landing’ narrative fading entirely. However, we still consider an overall soft landing to be a strong possibility, although it might impact certain countries and sectors more severely than others. Geopolitical tensions continue to pose risks, particularly regarding energy prices, events centred on the Red Sea region and Russia, as well as apprehensions about China’s growth prospects and possibly Taiwan.
Facts & Documents
Fund Domicile: Luxembourg
Fund Type: UCITS SICAV
Fund Launch: 15 September 2021
Base Currency: EUR
Depositary, Administrator, Transfert Agent: CACEIS 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:
Luxembourg, Austria, Germany, France, UK, Italy, Finland, Ireland
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.
ISIN: LU2139806298 Ticker: ALSEHIE LX Equity Launch: 15 Sep 2021
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ISIN: LU2277570862 Ticker: ALSEHDE LX Equity Launch: 15 Sep 2021