JULY 2026
Fund of the month:
R-co valor
Each month, we highlight an investment fund to help you better understand its specific features and strategy.
The goal: to provide you with a concrete perspective
Advertising communication
R-co Valor:
A strategy that defines its own path
[1] The fund management company may cease marketing the sub-fund in Belgium.
Full investment flexibility
Most Mutual Funds have a defined benchmark to beat. It is a true reflection of whether their investment team was able to add value in the long-term as opposed to merely following a market index, which can be done through a passive ETF.
Benchmarks are helpful for comparison, but they restrict an asset manager’s freedom. If a passive ETF is a car stuck on a single highway, an active Mutual Fund is one that can exit the traffic to find a quicker side road. R-Co Valor takes this a step further: it has no “map” or benchmark, allowing it to navigate anywhere.
With an equity range of 0% to 100%, the strategy is unconstrained by geography or asset class. This “carte blanche” approach empowers managers to hedge against market stress or aggressively capture mispriced assets. It is a conviction-led process fuelled by macro analysis. The following charts illustrate this variability, detailing how our asset and sector allocations have evolved over time.
Source: Morningstar for the period January 2007 – 31st May 2026A
Active and conviction-driven
R-co Valor combines a top-down macro view4 with fundamental stock selection through a high-conviction approach, focused on a concentrated selection of innovative and financially solid companies with strong value-creation potential (with 53 international equities as of 30th April 2026; this number is subject to change and is provided for illustrative purposes only). The managers focus on structural themes such as Basic Materials, Financial Services, Consumer Cyclical, Technology, Communication Services and Healthcare. The largest positions reflect these convictions, as it can be seen in the below table
Top 10 Equity Holdings
Source: Morningstar Direct as of 30th April 2026
In addition, the fund deliberately maintains a meaningful level of liquidity, currently, as of 30th April 2026, higher than 20% of the portfolio, a relatively uncommon approach among globally diversified flexible funds. This allows the managers to act swiftly during market corrections or when new opportunities arise. This level of liquidity is not a fixed requirement of the investment policy and is subject to change depending on market conditions and the managers’ views.
Long-term performance
While short-term performance may fluctuate — with a 1-year return of 11.25% as of 31st May 2026 — the long-term picture remains compelling. Over the last 10 years as of 31st May 2026, the fund has delivered an annual return of +9.11%. All performance numbers are net of fees. Investors should be reminded that past return is not a reliable predictor of future performance, and that higher expected return has historically correlated with higher expected risk. Please note that performance is subject to the new 10% Belgian Capital Gain Tax (in effect from 1st January 2026), which applies to the capital gains realized by investors upon the sale of their fund units.
Risk Considerations
Significant risks not adequately reflected in the risk and reward profile:
- Credit risk: The fund can invest in bonds. The issuers of these bonds may become insolvent, thus the value of the bonds may be lost in full or in part. If the bonds are high yield, the risk is higher.
- Counterparty risk: If a fund counterparty becomes insolvent, it can no longer, or only partially, pay outstanding obligations. When the fund uses derivatives this risk may be amplified.
- Derivatives risk: The fund may enter into derivative transactions. The higher profit opportunities thus created are associated with higher risks of loss, which in some cases may be more than you originally invested. The use of such instruments may involve specific liquidity risks, credit risks, counterparty risks, legal risks, valuation risks, operational risks and risks related to the underlying assets.
- Liquidity risk: The fund may invest in securities that are not easily tradable on a stock exchange or similar market. This could affect the fund's ability to repay investors.
- Emerging market risk: The fund will be more volatile because these markets are typically smaller, less liquid and more sensitive to economic and political factors.
- Currency Risk: The fund can be adversely affected by exchange rate fluctuations.
More information on risks can be found in the KID or in the prospectus.
Key metrics and risks over the last 10 years
| Metric | Value | Concept | Simple example |
|---|---|---|---|
| Volatility | 17.45 | The "Price Changes": How much the investment's value moves up or down from its average. | Expect price fluctuations of roughly 17.45% above or below the investment value over a year. |
| Sharpe Ratio | 0.62 | The "Reward-to-Risk" Score: The extra profit earned for every unit of risk taken. | For every 1% of volatility (risk) experienced, the fund generated 0.62% of extra return above a standard, "safe" bank rate. |
| Alpha | 2.44 | The "Extra Performance": The specific value added by the investment's strategy compared to a market. | If the general market grew by 10%, this specific investment grew by 12.44% — yielding an extra 2.44% profit purely from the manager's choices. |
Source: Morningstar Direct for 31st May 2016 to 31st May 2026
1 Consumer Cyclical: Industries sensitive to economic cycles, such as automotive, housing, and entertainment.
- 2 Consumer Defensive: Industries that remain stable regardless of the economy, such as food, beverages, and hygiene products.
3 Core Strategy: A central investment approach focused on long-term growth through a diversified portfolio of established companies.
4 Top-down Macro View:An investment strategy that first analyses global economic trends (e.g. Gross Domestic Product, inflation, interest rates… etc.) before selecting specific sectors or stocks.
Disclaimer
This document constitutes a marketing communication relating to a public offering of units of the fund R Co Valor. This information is provided for advertising purposes only and does not constitute investment advice, an offer, or a recommendation to buy or sell any financial instrument. The content may be subject to change without prior notice. The content is not intended to provide investment advice or any other investment service, and does not constitute, on the part of MeDirect Bank SA, an offer, a personalized recommendation, or advice regarding investment in the asset classes mentioned, nor should it be considered as such. The information contained on this page does not constitute legal, tax, or accounting advice.
The fund(s) featured have been selected by MeDirect Bank SA based on internal quantitative and qualitative criteria. There is no specific agreement between the respective fund houses and MeDirect Bank SA for this advertisement, and the Bank receives no direct payment for this publication. While MeDirect Bank SA receives standard retrocessions (inducements) from fund providers, these have not been increased or modified for the purposes of this advertisement.