French investment firm Dorval Asset Management, owned by Natixis AM at 50.1%, has rebranded its Dorval Flexible Monde fund to Dorval Global Convictions.
The boutique explained it wants to “organise its funds” into two ranges : ‘Convictions’ for its flexible funds (Dorval Convictions, Dorval Convictions PEA and Dorval Global Convictions) and ‘Manageurs’ for European equity strategies (Dorval Manageurs, Dorval Manageurs Europe, Dorval Manageurs Smid cap euro and Dorval Manageurs Small Cap Euro).
Dorval Global Convictions, co-managed by Sophie Chauvellier and Gustavo Horenstein alongside the firm’s economist François-Xavier Chauchat in charge of the fund’s strategy, is a flexible multi-asset fund aiming to perform in line with the global economic growth.
The fund’s positioning depends on the managers’ economic and financial convictions. Currently, the management team is playing themes such as the Japanese and European domestic reflation, the disinflationary recovery in emerging countries and the digitalisation of the global economy among its convictions.
Dorval AM said these positions are implemented through baskets of equities, European credit and emerging-market bonds.
“In terms of hedging, the team has decided to have limited exposure to equities (37%), and the bonds portion of the portfolio has a duration of almost zero. Exposure to the dollar through non-European markets was fully hedged,” the manager added.
Dorval’s economist Chauchat said: “Dorval Global Convictions’ management process is innovative and especially well-suited to current market conditions. In the current environment of very low interest rates and high volatility in the correlation between equities and bonds, it’s clear that flexible mixed funds need to be managed differently than in the past. Dorval Global Convictions reflects our strongest macroeconomic convictions in terms of investment themes for capturing global growth.”
Gustavo Horenstein, co-manager of the fund, added: “The fund is also unique in its approach to risk management. It offers several options: the choice of level of exposure to risk assets, diversification and choice of hedging strategies.”
Sophie Chauvellier, co-manager of the fund, explained: “Dorval Global Convictions aims to reap the benefits of global growth while minimising risk and volatility. Asymmetric hedging strategies were particularly useful during the Brexit vote and the French election campaign.”
Dorval AM has recorded €218m of net inflows in the Convictions fund range since the start of 2017 while the Manageurs’ strategies have posted €600m in net new cash during the same period.