DNCA has broadened its range of bond strategies with the launch of an inflation-linked bond fund and an absolute return fund.
The two SICAV funds are jointly-managed by new recruits Pascal Gilbert and Francois Collet, who joined the company from La Française Asset Management in September 2017.
The two new arrivals completed DNCA’s absolute return team and it was announced they would be charged with launching international absolute return bond investment strategies before the year-end.
The DNCA Invest Flex Inflation and the DNCA Invest Alpha Bonds fund were launched on 13 and 14 December, respectively.
The Flex Inflation fund combines a directional strategy, an interest rate curve strategy to take advantage of changes in the spreads between long and short rates, an arbitrage strategy between fixed-rate and inflation-linked bonds and an international strategy to tap the OECD bond markets.
This is while the Alpha Bonds fund combines a long/short directional strategy, an interest rate curve strategy, an arbitrage strategy and a credit strategy, using private sector bonds. The fund can be up to 100% invested in convertible bonds and up to 20% in contingent convertibles.
Building on bonds
Gilbert joined the group after a 16-year stint at La Française AM, where he served as head of bonds and oversaw a multi-strategy-focused bond fund.
This is while, Collet joined Gilbert’s team at La Française AM in 2006 as deputy head of bond portfolio management, in charge of the inflation theme.
Collet also managed global high yield, Eurozone bond and mixed asset strategies during his 11 years with the group.
At the time of their arrival, DNCA said the duo would enable it to expand beyond the traditional areas of fixed income investment.