(Boursier.com) — Richelieu 26 is mainly invested in corporate bonds maturing at the end of December 2026. Its simplified operation, accessible at any time and without entry or exit fees, makes the fund eligible for life insurance. It is now listed with a number of insurance companies.
Two major characteristics.
Richelieu 26 combines the characteristics of a traditional bond with the diversification of a traditional bond fund. “Rate increases are historic in terms of their magnitude and the speed of the movement. Our central scenario: a slow decline in inflation which, on average, will be, for the next 3 years, higher than that of the last ten years. In this context, a fund with a maturity date makes particularly good sense,” explains Alexandre Hezez, co-manager of Richelieu 26 and Strategist of the Richelieu Group.
The Simplicity Card.
Investing in the best return/risk ratio Richelieu 26 plays the card of simplicity, the fund is invested exclusively in solid corporate bonds issued in euros, to the exclusion of any complex product. With rising rates, the team is convinced that companies with high leverage could be at risk over the next two years.
GI Bonds.
Thus, it does not invest in any bond with a rating lower than BB- and largely favors European companies (80-90% of the portfolio), 50% of which are French and come from around twenty sectors of activity. Around 40% of the portfolio’s assets are invested in Investment Grade bonds. In addition, the fund is SFDR 8, with a proprietary approach of the Best in universe type retaining, within the initial investment universe, the 80% of issuers having obtained the best ESG rating. Eligible for life insurance, Richelieu 26 has no marketing period. Neither entry fees nor exit fees, subscribers can thus leave the fund if the period is good or stay until maturity otherwise.
Financial solidity.
“Our choice for the 2026 maturity is partly linked to the shape of the yield curve. On the short end of the curve, yields increase very rapidly with maturity. doing 5 years does not necessarily bring much more yield than 4 years. On the other hand, the risk increases: the further the maturity goes, the less there is visibility, from a macro-economic point of view, than the financial solidity of the various issuers,” adds Etienne Dubourg, Bond Manager at Richelieu Gestion, who has already managed funds at maturity.
Conclusion
An attractive fund for taking advantage of rising rates.