Dogma Renovatio Credit Fund, October 2024

This document was prepared by Danilo, G. Onorino for information and marketing purposes. Past performances are not guarantee of future returns.

In October 2024, financial markets reflected a cautious stance among investors, influenced by upcoming political events and mixed economic data. While certain sectors showed resilience, overall market performance was subdued amid persistent inflation and geopolitical tensions.

• Financial Markets Performance: October saw a shift to a more cautious stance in equity markets. The S&P 500 retreated by 1.0% from its recent all-time high, reflecting investor wariness ahead of the U.S. presidential election and the Federal Reserve’s policy stance. The Nasdaq Composite declined by 0.52% as growth-oriented sectors showed some weakness. In the bond market, investment-grade corporate bonds (LQD) was down -3.5%, while high-yield bonds (HYG) declined by 1.4%, indicating de-risking in fixed-income assets.
• Macroeconomic Data: Economic indicators continued to send mixed signals. The U.S. ISM Manufacturing Index rose slightly to 48.5, indicating a slower contraction in manufacturing, while the Services Index improved to 54.9, suggesting steady expansion in the services sector. The labor market added 12,000 jobs, though the unemployment rate ticked up to 4.1%, hinting at a potential cooling. Inflation seems under control, with the Consumer Price Index (CPI) increasing by 0.2% month-over-month, moving the annual rate to 2.4%.
• Global Economic Sentiment: The global economic outlook remained restrained due to geopolitical risks and economic uncertainties. The IMF’s Global Financial Stability Report highlighted systemic vulnerabilities, stressing the need for caution in policy implementation. Energy prices experienced volatility, with Brent crude oil prices declining to approximately $71 per barrel by the end of the month. This decrease was influenced by easing tensions in the Middle East and decisions by OPEC+ to delay planned production increases, aiming to stabilize the market amid fluctuating demand.

Here a summary:

Spx was down 0.99%

Ndx was down 0.85%

LQD was down 3.53%

HYG was down 1.44%

Bloomberg Global Green Bond Index was down 3.48%

We will refer to the A-Class USD shares, ITD Dogma Renovatio Credit Fund scored the following performance:

1) Chart against the Main Credit Indices/ETFs (Source: Bloomberg)

Chart against the Green Bonds Indices-Alternative Energy (Source: Bloomberg)

Dogma Renovatio Credit Fund recorded performance was down 0.45% in October 2024, outperforming the indices and peers by over 3%. The resilient performance has been achieved despite a challenging market environment marked by a steepening yield curve and shifting rate expectations.

The fund’s track is largely attributed to its strategic focus on duration management, quality credit exposure, and yield optimization, while carefully balancing convexity to manage sensitivity to rate changes. This disciplined approach has allowed the fund to maintain stability as the market grappled with the impact of volatile rates and economic uncertainty.

Below a comparison versus the peers since inception.

On a year-to-date basis, and consistently throughout recent performance periods, the Dogma Renovatio Credit Fund ranks in the top quintile among bond funds of comparable asset class and geo-focus. This peers group, amassing over $250 billion in assets under management, operates within similar jurisdictions and legal frameworks, underscoring the fund’s positioning and competitive advantage within the sector.

Ranking by Sharpe Ratio

We will be pleased to share further updates with you in the coming month.

Warm regards,

Danilo G. Onorino