Interview - Moorea Fund - High Yield Opportunity 2025 and Floating rate Income

Bertrand Durnez, Head of Fixed Income Management and Quentin Schmitt, Fixed Income portfolio manager at Société Générale Private Wealth Management review the impact of the year 2020 on two Moorea Funds: High Yield Opportunity 2025 & Floating Rate Income.


2020 has been an exceptional year in many ways for the fixed income market. Like all other market segments, the fixed income one was unprepared for the emergence of COVID 19 and what would become the worst pandemic in nearly 100 years. The year had started on a solid footing, with the bond market offering good prospects, buoyed by abundant liquidity and encouraged by good corporate fundamentals. The shock of the pandemic was all the more violent. Bond valuations fell, reflecting both the risk of recession and the effect of the sudden deterioration in liquidity conditions and a profound dysfunction of the bond market. This almost unprecedented situation affected all types of bonds, even the safe havens ones such as government securities, and it lasted until the massive interventions of central banks coupled with fiscal stimulus policies put out the ongoing fire. Bond markets, which were directly targeted by central banks, were the first to recover.

Overall, despite the high volatility of 2020, we are satisfied with the performance of our funds, most of which ended in positive territory. The robust construction of our portfolios, based on strong diversification and a rigorous selection of issuers, as well as our reactivity during the year made it easier for us to navigate in a difficult context and to respond to our clients' expectations and needs. Besides, the launch of Moorea Fund- High Yield Opportunity 2025, allowed us to expand our range at an opportune moment.

Our two funds "Moorea Fund - Gestion Patrimoniale" and "Moorea Fund - Floating Rate Income” got awarded the “LuxFLAG” ESG label We are proud that our commitment to a more responsible economy was recognized one again.

Download the entire interview and learn more about our perspectives by clicking on the link below.

Bertrand DURNEZ Head of Fixed Income Management