# ANNUAL MANAGEMENT REPORT at 12/31/2021
- Bonds or negotiable debt securities.
- The Fund may hold convertible bonds.

Securities with an Investment Grade (BBB-) rating as a minimum. The Management Company relies on its teams and its own methodology to appraise credit risk. The securities comprising the portfolio must satisfy rating constraints as described below: Standard & Poor’s rating or equivalent.
The sensitivity range for securities will be between 0 and 6.
Investors are reminded that the specific management of sub-funds in the bond and credit markets is not the ultimate purpose of the management objective, as the portion of interest rate products is held to curb the portfolio’s overall volatility.
- Shares or units of other UCIs:The Fund may hold units or shares in UCIs (UCITS or AIFs) or investment funds, subject to a limit of 10% of its assets.

| UCITS under French law* | X |
| --- | --- |
| UCITS under European law* | X |
| Retail investment fund under French law* | X |
| Professional investment funds under French law in compliance with the common law governing cash borrowings (not over 10%), counterparty risk, overall risk (not over 100%) and limiting at 100% the re-use of collateral* |  |
| AIFs under European law or investment funds under foreign law that are the subject of a bilateral agreement between the AMF and the fund’s oversight authority and if information exchange arrangements have been set up reporting the management of assets on behalf of third parties* |  |
| Collective investments under French law or AIFs under European law or investment funds under foreign law meeting the conditions set out in Article R 214-13 of the French Monetary and Financial Code* |  |
| Investment funds under European or foreign law meeting the criteria set out in the French Financial Markets Authority’s General Regulation (Article 412-2-2 of the AMF General Regulation) |  |
| Feeder UCITS or AIF |  |
| Funds of funds (UCITS or AIF) under French or European law holding more than 10% in UCIs |  |
| Professional investment funds that do not meet the common law criteria above |  |
| Professional specialized investment funds |  |
| Private equity funds (including FCPR venture capital funds, FCPI innovation funds, FIP local investment funds); and professional capital investment funds |  |
| OPCI real estate mutual funds, OPPCI professional real estate mutual funds, and similar structures under equivalent foreign law |  |
| Alternative funds of funds |  |

* These UCITS/AIFs/Funds may not themselves hold more than 10% of their assets in UCITS/AIFs/Funds.
The UCIs and funds held by the Fund may be managed by Dorval Asset Management or one of the management companies in Groupe BPCE, in which case, there may be a fully recognized disparity between the ESG/SRI approaches taken.
| Type of instruments used | MARKET TYPE | RISK TYPE | OPERATION TYPE |
| --- | --- | --- | --- |
| Admission to regulated markets | Organized markets | Over-the-counter markets | Equities | Interest rates | Exchange rates | Credit | Other risk(s) | Hedging | Exposure | Arbitrage | Other strategy (ies) |
| Futures on |
| Equities | X | X |  | X |  |  |  |  | X | X |  |  |
| Interest rates | X | X |  |  | X |  |  |  | X | X |  |  |
| Exchange rates | X | X |  |  |  | X |  |  | X | X |  |  |
| Indices | X | X |  | X | X | X |  |  | X | X |  |  |
| Options on |
| Equities | X | X |  | X |  |  |  |  | X | X |  |  |
| Interest rates | X | X |  |  | X |  |  |  | X | X |  |  |
| Exchange rates | X | X |  |  |  | X |  |  | X | X |  |  |
| Indices | X | X |  | X | X | X |  |  | X | X |  |  |
| Swaps |
| Equities |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest rates |  |  |  |  |  |  |  |  |  |  |  |  |
| Exchange rates |  |  |  |  |  |  |  |  |  |  |  |  |
| Indices |  |  |  |  |  |  |  |  |  |  |  |  |
| Forward foreign exchange |
| Currency(ies) |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit derivatives |
| Credit Default Swap (CDS) |  |  |  |  |  |  |  |  |  |  |  |  |
| First-To-Default |  |  |  |  |  |  |  |  |  |  |  |  |
| First-Loss Credit Default Swap |  |  |  |  |  |  |  |  |  |  |  |  |

| Type of instruments used | TYPE OF RISKS	OPERATION TYPE |
| --- | --- |
| Equities | Interest rates | Exchange rates | Credit | Other risks | Hedging | Exposure | Arbitrage | Other strategy(ies) |
| Warrants on |  |
| Equities |  |  |  |  |  |  |  |  |  |
| Interest rates |  |  |  |  |  |  |  |  |  |
| Exchange rates |  |  |  |  |  |  |  |  |  |
| Indices |  |  |  |  |  |  |  |  |  |
| Subscription warrants |  |
| Equities | X |  |  |  |  | X | X |  |  |
| Interest rates |  |  |  |  |  |  |  |  |  |
| Equity linked |  |  |  |  |  |  |  |  |  |
| Convertible bonds |  |
| Exchangeable bonds |  |  |  |  |  |  |  |  |  |
| Convertible bonds | X | X | X | X | X | X | X |  |  |
| Contingent convertible bonds | X | X | X | X | X | X | X |  |  |
| Callable interest rate products |  |  |  |  |  |  |  |  |  |
| Puttable interest rate products |  |  |  |  |  |  |  |  |  |
| Structured EMTN / MTNs |  |
| Structured MTNs |  |  |  |  |  |  |  |  |  |
| Structured EMTNs |  |  |  |  |  |  |  |  |  |
| Credit-Linked Notes (CLN) |  |  |  |  |  |  |  |  |  |
| Other (to be specified) |  |  |  |  |  |  |  |  |  |

- Deposits:These transactions may be used within the limits set out in the regulations to earn interest on cash according to their levels of remuneration in comparison to other money-market products.

Translation (ENFR, 2021-12-31):
# RAPPORT DE GESTION ANNUEL au 31/12/2021
à la fois par la moindre dangerosité du variant Omicron par rapport au Delta et par le discours de
la Fed quant à l’inflation. En Europe la BCE a poursuivi sa politique monétaire accommodante.
En cohérence avec notre scénario de poursuite du boom économique en 2022, nous maintenons une opinion raisonnablement positive sur les actions à échéance fin d’année. Le rallye montre des signes de maturité, ce qui justifie une exposition modérée en absolu, mais la classe d’actifs reste attractive par rapport aux obligations. Nous identifions l’inflation comme principal scénario de risque et resterons vigilants quant à la réponse des banques centrales en termes de politique monétaire.
En 2021, Dorval Convictions (part I) enregistre une performance de +12,8% contre une hausse de
+11,1% pour son indice de référence (50% Euro Stoxx 50 NR et 50% Eonia capitalisé). Le taux d’exposition aux actions a été principalement dynamique au cours de l’année. Celui-ci a évolué dans une fourchette de 52% à 100% en fonction de la rapidité de la hausse des marchés financiers, des nouvelles sur l’évolution sanitaire (variants Delta et Omicron), de l’avancée des vaccinations et des tensions inflationnistes.
Portés par les campagnes de vaccinations et la reprise économique, les marchés financiers ont fortement progressé au cours des cinq premiers mois de l’année. Le taux d’exposition offensif et le biais plus cyclique du portefeuille ont principalement contribué à la bonne performance relative de Dorval Convictions au cours de la période. A partir de juin, dans un contexte d’inquiétudes liées au variant Delta et d’une possibilité de reconfinement mais aussi de craintes d’inflation dues aux goulets d’étranglement, les investisseurs ont procédé à une forte rotation sectorielle en faveur des grandes valeurs de croissance et à des prises de bénéfices sur les valeurs cycliques (industrielles, financières). Dans ce contexte, le taux d’exposition avait été réduit en prenant des bénéfices sur nos valeurs liées à la reprise de la consommation.
Au cours du second semestre, les marchés sont restés bien orientés, soutenus par les bonnes publications des résultats, des politiques monétaires toujours accommodantes et la dynamique des vaccinations en Europe. En novembre, l’apparition du variant Omicron a dans un premier temps fait brutalement baisser les marchés mais la moindre dangerosité de celui-ci et le taux élevé des vaccinations ont permis d’éviter un arrêt de l’activité.
La croissance mondiale va rester soutenue au cours des prochains mois et les entreprises devraient afficher de bons résultats 2021. Dans ce contexte, le taux d’exposition aux actions est resté proche de 100% en fin d’année. L’évolution de l’inflation et des politiques monétaires seront les principaux indicateurs à surveiller début 2022.