Equity markets are undergoing a period of significant transformation, driven by changing monetary policies, persistent geopolitical tensions, and evolving economic conditions. In this uncertain landscape, investors are increasingly prioritizing long-term strategies that not only address these challenges but also aim to foster potential sustainable value creation in the future.

The uncertainty in the equity market is prompting investors to adopt a more cautious stance. However, the CM-AM Convictions Fund Range could provide a potential solution to address these concerns. With its distinctive dual-market strategy, which includes the actively managed, high-conviction funds CM-AM Convictions Euro and CM-AM Convictions USA (offering access to European and U.S. markets, respectively), the range stands out in the investment landscape. By maintaining lower volatility compared to their respective benchmarks1 until now, these funds could offer a more stable path through market fluctuations while focusing on value-creation companies through quality-growth stocks.

With over €1.32 billion and €‌​​6722 million in assets under management in CM-AM Convictions Euro and CM-AM Convictions USA, respectively, and nearly 20 years of experience emphasizing a fundamental investment approach using proprietary tools, the fund range’s philosophy is built around four key trends. These mega-trends—innovation, well-being and lifestyle, sustainable economy, and longevity—serve as powerful long-term growth drivers, regardless of short-term economic shifts. Leveraging the investment team’s deep understanding of these secular trends, the funds maintain a significant exposure to transformative sectors, with at least 2/3rd2 of the portfolio allocated to them. By capitalizing on these trends, the portfolio managers focus on identifying companies that could be positioned to benefit from long-term structural changes in the global economy.

The portfolios maintain a disciplined focus on estimated growth and quality stocks, enhanced by strategic diversification that allows for adaptation to shifting market conditions. By identifying companies with estimated sustainable competitive advantages, solid balance sheets, and experienced management teams, the funds aim to deliver consistent long-term potential performance. Until now this approach has proven effective in both regions, with recent performance3 figures highlighting the success of these strategies. For instance, although CM-AM Convictions Euro (S Share class) matched the performance of its benchmark, the Euro Stoxx® Net Return4 (7.3%3) in the first month of 2025, it outperformed in 2024 (15.7%3 vs 9.3%3). Similarly, CM-AM Convictions USA (IC Share class) outperformed its benchmark in 2024 (40.9%3 vs 32.4%3 in euros).

What makes the CM-AM Convictions Funds range potentially appealing in the current environment is the proven resilience during times of market stress recorded until now. Historical analysis indicates that the funds typically in the past exhibited lower volatility compared to their reference benchmarks1, a characteristic that could attract investors seeking a more stable form of exposure. For example, CM-AM Convictions Euro has recorded historical volatility of 18.2%2 compared to 18.8%2 for the benchmark1 over the analyzed period, with observed volatility readings falling below the reference indicator in 60%5 of cases. Similarly, CM-AM Convictions USA has recorded lower volatility compared to its benchmark1 since launch6 (15.8%2 vs 16.8%2).

More specifically, until now CM-AM Convictions Euro has showed resilience3 during periods of significant market stress, successfully navigating the European equity landscape and maintaining stability amid fluctuations. For instance, during months when the Euro Stoxx4 index declined by more than 5% in a month, the fund outperformed its benchmark 72% of the time3. This defensive profile has proven valuable, particularly in light of ongoing geopolitical uncertainties and potential market volatility. Additionally, the fund currently holds a Morningstar Rating of 4 Stars as of the end of January7, further highlighting its strong performance and reliability.

The CM-AM Convictions Funds Range employs a well-established investment methodology that combines sophisticated proprietary tools developed in-house, integrating both quantitative and qualitative analysis. The investment process begins with a quantitative screening using a “Radar Tool” which filters the defined universe and identifies opportunities based on growth metrics, earnings revisions, and return ratios. This screening is followed by in-depth fundamental analysis, evaluating business models through a standardized DCF approach that assesses balance sheet structure and operational leverage. This model helps to estimate the medium-term upside potential of companies. Additionally, the investment process incorporates a robust risk control framework, including monitoring liquidity risk, assessing the volatility of individual positions adjusted for weight within the portfolio, and holding monthly performance review meetings with the extended management team.

While both funds currently have a large cap bias, the portfolio construction process emphasizes diversification across all market capitalizations depending on market conditions to optimize performance potential and maintain liquidity. Primarily focused around 60-702 stocks, with the top 10 holdings making up more than 40%2 of the portfolio, the range ensures exposure to a broad mix of sectors and company sizes, while also maintaining adequate liquidity.

The CM-AM Convictions funds range incorporates ESG considerations through a comprehensive framework, including a unique bonus/penalty approach applied to the Weighted Average Cost of Capital (WACC), based on companies’ ESG ratings. By targeting companies that demonstrate high level of ESG commitment, both funds maintain ESG scores above their respective investment universes while actively monitoring key metrics such as carbon intensity and board gender diversity. This results in a minimum sustainable investment threshold of 30%. Furthermore, the CM-AM Convictions Funds Range meets the criteria for SFDR 8 classification8, aligning financial objectives with responsible investment practices.

Looking ahead, the funds’ focus on clear, sustainable, and well-positioned companies across attractive sectors and all market capitalizations—combined with their proven ability to protect capital during market downturns—could make them an appealing choice for investors seeking long-term value creation through active management in the current environment.

Main associated risks: capital loss risk, equity market risk, discretionary management risk, concentration risk, liquidity risk, foreign exchange risk.

Jean-Louis Delhay, Chief Investment Officer

Jean-Luc Menard, Hoofd van het Convictions-team

1. Euro Stoxx® Net Return and S&P 500 NR are the benchmarks respectively for CM-AM Convictions Euro and CM-AM Convictions USA. 
2. Source: Groupe La Française as of 31/01/2025. 
3. Source: Groupe La Française as of 31/12/2024. Past performance is not a guide to future performance. 
4. The EURO STOXX® Index is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland (“STOXX”), Deutsche Börse Group or their licensors, and is used under license. The fund is neither sponsored nor promoted, distributed or in any other manner supported by STOXX, Deutsche Börse Group or their licensors, research partners or data providers, and STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions or interruptions in the EURO STOXX® Index or its data. 
5. Sources: Crédit Mutuel Asset Management, Bloomberg as of 31/12/2024. Methodology: 52-week rolling volatility since 2006, calculated by measuring the weekly returns of both the fund and its benchmark. Each return is derived by dividing the value of one week by the previous week (e.g., =H5/H4-1) to reflect short-term fluctuations. 
6. Since 22/03/2022. 
7. Source: Morningstar as of 31/01/2025. 
8. SFDR classification doesn’t guarantee funds’ performance.

Disclaimer

MARKETING DOCUMENT FOR PROFESSIONAL INVESTORS ONLY WITH REGARD TO THE MIFID DIRECTIVE (2014/65/EU)

For a full description of the risks and further information on the strategies and all fees, please refer to the current prospectus and key information document available in English on our website. The policy relating to customer inquiries and complaints implemented by Groupe La Française is available on our website. The asset management company may interrupt the distribution of the fund without notice. Non contractual information considered to be accurate at the date of publication and likely to change over time. Past performance is not indicative of future performance. This non-contractual support in no way constitutes a recommendation, solicitation of an offer, or an offer to buy, sell, or arbitrage, and should not be interpreted as such. The reference to certain securities or financial instruments is provided for illustration purposes only. It is not intended to promote direct investment in these instruments. Crédit Mutuel Asset Management disclaims any responsibility for any alteration, distortion, or falsification of this communication. Any reproduction or modification of this document is strictly prohibited, unless authorized by Crédit Mutuel Asset Management. La Française AM Finance Services, an investment firm approved by the ACPR under number 18673 (www.acpr.banque-france.fr) and registered with ORIAS (www.orias.fr) under number 13007808 on 4 November 2016.  Crédit Mutuel Asset Management: 128, boulevard Raspail 75006 Paris. Asset management company approved by the AMF under number GP 97 138. Société Anonyme (public limited company) with share capital of euros 3871680 registered with “RCS de Paris” under number 388 555 021 APE code 6630Z. Intra Community VAT: FR 70 3 88 555 021. Crédit Mutuel Asset Management is a subsidiary of Groupe La Française, the asset management holding company of Crédit Mutuel Alliance Fédérale.

Address of the local paying agent: Allfunds Bank SA Calle Estafeta 6- Complejo Plaza de la Fuente, Edificio 3, La Moraleja, Spain; Italy: Allfunds Bank, Via Bocchetto, 6, 20123 - MILANO – Italia, Portugal: Banco Best: Rua Dom João V 24 Esc. 0.05, 1250-091 Lisboa, Portugal