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La Française is pleased to announce that La Française Sub Debt has reached €923 million (US$1,017) in assets under management.
The fund is a diversified portfolio of approximately 150 subordinated debt securities with an average rating of BB (Source: La Française, as at 30/11/2019) and is co-managed by Paul Gurzal, Head of Credit who joined La Française in 2008, and Jérémie Boudinet, Fund Manager. Overall, La Française AM manages €1,4 billion in subordinated debt instruments.
The track record of Paul Gurzal, manager of the fund since its creation in 2008, and Jérémie Boudinet is especially notable and attracting attention among European professional investors. The fund has registered €230 million in net inflows since past January. La Française Sub Debt has a recommended investment horizon of more than 10 years and had a cumulative net performance since inception (20/10/2008) of 124% (30/11/2019), considerably outperforming the performance objective of 112%. The annualized performance of the fund over the same period was 7.54% compared to its annual objective of 7%.
Paul Gurzal remains positive on the outlook for subordinated debt and commented, “Subordinated debt is an alternative to High Yield bonds. They enable investors to build exposure to financial and non-financial companies which in our selection process are mostly Investment Grade-rated. Subordinated bonds carry structural risks but can add a better “carry” component to fixed income portfolios, as their average yields remain largely positive.”
Paul Gurzal holds a “AAA” Citywire Fund Manager Rating for his rolling risk-adjusted performance for the period running from 30/11/2016 to 30/11/2019 (Source & copyright: Citywire)
The C-share class of the Fund had a net performance YTD as at 30/11/2019 of 13.88% and over the last ten calendar 12-month periods of: -6.45% (2018), +13.42% (2017), +5.8% (2016), -0.60% (2015), +9.11% (2014), +11.2% (2013), +35.33% (2012), -24.99% (2011), +4.89% (2010), +28.87% (2009). (Source: La Française AM) It should be noted that an investment in the Fund entails certain risks including the risk of capital loss, interest rate risk, risks arising techniques such as derivatives, etc.
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