IRIS Finance International Group announces the creation of IRIVEST Investment Managers, resulting from the merger of its two subsidiaries Chahine Capital and DYNASTY Asset Management, to form its Collective Investment Management division.

This operation, approved by the Commission de Surveillance du Secteur Financier (CSSF) on July 31th, 2025 merges Chahine Capital and DYNASTY Asset Management while preserving the DNA that has made the success of these two complementary and recognized areas of expertise. Investment philosophies, teams, and management tools remain unchanged, while the company gains enhanced resources to strengthen its investments in Research & Development, enabling us to deliver even more efficient services to the satisfaction of our clients.

 

IRIVEST Investment Managers: Strong Expertise Serving Investors

IRIVEST Investment Managers offers 4 high value-added areas of expertise:

• Quantitative “Momentum” Equity Investment: Through the SICAV Chahine Funds (formerly Digital Funds SICAV, subject to CSSF approval), the proprietary quantitative Momentum strategies deliver some of the industry’s best risk-adjusted performances, thanks to an active investment approach supported by continuous research and a systematic, disciplined, and rigorous investment process.

Since 1998 and the launch of the SICAV, Chahine Capital has been the European pioneer in quantitative momentum equity investment. The SICAV currently comprises 5 funds invested in European and U.S. equities.

• Convertible Bond & Credit Investment: Through DYNASTY SICAV, created in 2014, the investment philosophy is characterized by a non-benchmarked, conviction-driven approach, a bottom-up bond selection process, and a conservative strategy (with an average delta below 40% for convertible bond portfolios, in particular), which has enabled investors to benefit from a strong risk-adjusted performance track record.

• Management Company Services: IRIVEST IM provides tailor-made Management Company services in Luxembourg. Its “ManCo Services” offering is aimed at investment managers and investment advisors, with a full and modular range of services adapted to their needs: portfolio management, risk control, valuation, compliance, reporting — in both UCITS and AIF formats.

• Private Wealth Management: IRIVEST IM also provides tailor-made Portfolio Management and Investment Advisory services for wealth management, through partnerships with leading banking institutions.

 

Preserving Investment Teams and Philosophies

The merger of Chahine Capital and DYNASTY Asset Management follows a principle of preserving the integrity, visibility, and historical roots of each area of expertise. IRIVEST Investment Managers therefore maintains two autonomous investment teams, with no changes to the existing investment processes.

Commercial, IT, risk & compliance, communication, and HR teams are pooled to enhance efficiency and provide IRIVEST IM with greater resources to continue investing and expanding for the benefit of its clients.

A Strengthened Position in the European Investment Management Market

The consolidation of Chahine Capital and DYNASTY Asset Management positions IRIVEST Investment Managers as a leading independent European investment manager, with strategic offices in Luxembourg (headquarters) and Paris (branch), as well as commercial presences in Germany and Italy, and product distribution in Switzerland via its sister company, Compagnie Financière Genevoise 1855.

Supported by a Board of Directors of six members (including two independent directors), governance is entrusted to Michaël Sellam, Chairman of IRIS Finance International Group, as Chairman of the Board of IRIVEST Investment Managers, and Charles Lacroix, CEO of Chahine Capital since 2021 and of DYNASTY AM since 2025, who becomes Director and CEO of IRIVEST Investment Managers.

 

Promoting Innovation, Expertise, and Sustainability

The primary objective of IRIVEST Investment Managers remains the same as that of Chahine Capital and DYNASTY Asset Management, and which has driven their success: to provide original and innovative active investment solutions, delivering high-performance products, combined with strong proximity to clients. Our expertise across asset classes is consistently demonstrated through performance and reliability.

IRIVEST IM is also committed to responsible finance, embedding sustainable investment processes at the core of its approach, including exclusion policies, ESG voting, engagement, and responsible investment practices.

Several funds within the Chahine Funds SICAV and DYNASTY SICAV have been awarded leading European labels (LuxFLAG ESG Label and French ISR Label), demonstrating the rigorous integration of environmental, social, and governance (ESG) criteria into the investment process.

IRIVEST IM intends to pursue this trajectory in the coming years to meet clients’ growing expectations for transparency and sustainability.

 

“I am particularly pleased to announce the launch of IRIVEST Investment Managers. This initiative stems from our commitment to continue offering investors unique and high value-added active investment solutions, while equipping ourselves with enhanced resources to further our development — always to the benefit of our clients”, said Michaël Sellam, Chairman of the Board of IRIVEST Investment Managers.

 

Contact us

contact@irivest.com

Press Contact

Mallawry Lèbre: mallawry.lebre@irivest.com

Dear investors,

The first half of the year saw a continuation of the stock market rally that began almost 3 years ago, against a very active political and geopolitical backdrop. The period was very favourable for the ‘momentum’ style, reflecting the strong trends seen in the market. At the end of June, the MSCI Europe NR posted a +8.5% return in EUR since the start of the year, and the MSCI USA NR +6.1% in USD.

Against this backdrop, all European Digital Stars strategies outperformed over the year, benefiting from sustainable trends in several market segments that had been identified in advance, particularly in the defence and finance sectors.

 

Annualised performance of Digital Stars funds

Risk indicator: 5/7

 

 

 

 

 

 

 

 

 

 

Source: FactSet/Chahine. Data as of 30/06/2025. Past performance is not indicative of future returns.

Digital Stars Europe (retail share class)

Source: FactSet/Chahine. Data as of 30/06/2025. Past performance is not indicative of future returns.

Over the first half of 2025, the fund’s “pro-cyclical” positioning has been favourable for Digital Stars Europe, particularly since the beginning of March when the small- and mid-caps began their rebound relative to the market. The wide dispersion within European equities has supported good stock selection, with a clear focus on the market’s strongest trends. The fund benefited from excellent sector positioning, with an overweight in financials and industrials, two of the market’s leading sectors in terms of weight and performance, and a clear underweight in healthcare and consumer staples. In the end, the fund benefited from the value theme and the renewed interest in defence.

 

Digital Stars Continental Europe (retail share class)

Source: FactSet/Chahine. Data as of 30/06/2025. Past performance is not indicative of future returns.

In the first half of 2025, Digital Stars Continental Europe benefited from its “pro-cyclical” all-cap positioning, as well as from a good selection of stocks, supported by a positioning well oriented towards strong underlying market trends. The fund’s overweighting of financials and industrials, and underweighting of healthcare, consumer discretionary (particularly luxury goods) and technology, contributed positively to the fund’s outperformance, echoing a favourable year for value and defence.

 

Digital Stars Eurozone (retail share class)

Source: FactSet/Chahine. Data as of 30/06/2025. Past performance is not indicative of future returns.

Digital Stars Eurozone benefited from a market environment that favoured its “pro-cyclical” all-cap positioning over the half-year. It also benefited from good stock selection and neutral sector positioning. The main contributors were financials and industrials. In terms of the fund’s positioning, the overweight in the financials sector, the main positive contributor to performance, was offset by an overweight in the consumer discretionary sector, particularly luxury goods.

 

Digital Stars Europe Smaller Companies (retail share class)

Source: FactSet/Chahine. Data as of 30/06/2025. Past performance is not indicative of future returns.

During the first half of the year, Digital Stars Europe Smaller Companies benefited from a good selection of stocks, supported by a positioning that was well aligned with the strongest underlying market trends. Good earnings announcements for the stocks in the portfolio, as well as an overweight in the financial sector and defence stocks, made a positive contribution to outperformance.

 

Digital Stars US Equities (retail share class)

Source: FactSet/Chahine. Data as of 30/06/2025. Past performance is not indicative of future returns.

In the first half of 2025, the US equity markets experienced a sharp correction, followed by a rapid rebound on the back of political developments, particularly on the issue of tariffs. This environment has benefited the largest caps, and the index is leading Digital Stars US Equities in terms of year-to-date performance, because of the fund’s all-cap allocation. However, the fund stands clearly ahead of the small cap index, showing the good stock selection of the strategy, particularly in the technology, industrials and consumer discretionary sectors.

FOCUS ON DIGITAL STARS EUROPE

Over the first half of 2025, Digital Stars Europe’s “pro-cyclical” all-cap positioning has been buoyant, particularly since the beginning of March. After a difficult start to the year in relative terms for small and mid caps, which have been well represented in the portfolio, these recovered from March onwards, benefiting the fund’s truly all-caps positioning. The new situation in transatlantic relations has certainly contributed to this turnaround, pushing the theme of sovereignty in different ways. In terms of economic sovereignty, since European small and mid caps are less dependent on trade with the United States, the context has been more favourable for them than for the larger, more globalised companies. As for military sovereignty, this was reflected in the market’s renewed appetite for defence-related companies, which are also well represented in the fund, particularly in the industrial sector (Kongsberg Gruppen, Rheinmetall, MilDef, etc.). The value theme continued to build on its momentum of 2024, while remaining well represented in the fund over the half-year, particularly in the banking (BPER, Banco de Sabadell) and insurance (Unipol Assicurazzioni) sectors. M&A rumours and manoeuvres in the Italian financial sector provided additional support for the sector. In addition to its overweight positions in financials and industrials (two of the market’s leading sectors in terms of weight and performance), the fund also benefited from excellent sector positioning through its marked underweight in healthcare and consumer staples.

 

Digital Stars Europe performance attribution vs. MSCI Europe, by GICS sectors

Gross performance and contribution, excluding fees. Data as of 31/12/2024 to 30/06/2025. Past performance is not indicative of future returns.

 

Portfolio dynamics

 

Positioning of Digital Stars Europe vs. MSCI Europe as of 30/06/2025.

These breakdowns evolutions are not constant and may change over time.

 

The portfolio’s style profile remained relatively stable over the first half of the year. In relative terms, the quality/visibility style generally behaves in the opposite way to the value style. Consequently, being underweight “quality/visibility” allowed the fund to be positively sensitive to the value trend that dominated the market in the first six months. The theme of the revaluation of value assets continued over the half-year, and should continue for certain segments that are still priced at a discount.

In terms of sectors, this stylistic positioning continues to translate into a clear overweighting of the financials and industrials sectors, and an underweighting of healthcare (especially pharmaceuticals) and consumer staples. This sector allocation remained stable over the period.

In geographical respects, Italy still represents the fund’s largest overweight, although this has been reduced in recent portfolio reviews. France remains the most underweight country.

Finally, our economic momentum indicator continues to show that the Eurozone economy is in a positive dynamic. This pro-cyclical regime is a priori more favourable to small caps in relative terms. The fund has therefore continued to apply an equal-weight logic for new entrants during portfolio reviews. As a result, the fund has an appropriate allocation that boosts exposure to small and mid caps and underweights the largest market caps. Our indicator could switch to contracyclical mode in the second half of the year. This would have the effect of reducing the underweight in the giant caps, as remaining too underweight in this market segment would represent a major active risk in this type of macroeconomic context.

Strong stylistic, sectoral and geographical trends benefited the Momentum factor as implemented in the European Digital Stars strategies, which significantly outperformed over the year. We will now attempt to analyse the forces that we believe will determine the performance of the European and US equity markets in the second half of the year.

 

 

Fundamental normalization led equity markets in the first half of the year

The stock market rally that began almost 3 years ago continued during the first half of the year (MSCI Europe NR +8.5% in Euro, MSCI USA NR +6.1% in USD), despite the particularly dense political and geopolitical news.

However, not all segments of the equity market benefited from this rise, and performance was atypically widely dispersed.

In Europe, for example, the banking sector gained +29.1% in the first half, while the consumer goods and healthcare sectors both lost -6.3%.

Source: FactSet/Chahine Capital. Data as of 30/06/2025.

 

Geographically, the US Dollar decline (-13.3% vs. Euro) was such that, expressed in Euro, US equities declined by -5.9% strongly underperforming Europe and China in the first half of the year.

Source: FactSet/Chahine Capital. Data as of 30/06/2025.

 

A perfectly intelligible and logical phenomenon in what could be the third and final stage of the stock market rally initiated in autumn 2022.

The first stage, between September 2022 and October 2023, was seen as easing up on the economic cycle. The global economy was proving far more resilient than anticipated, despite inflation at the time running into two digits.

The second stage, between October 2023 and December 2024, was the positive consequence of rapidly falling inflation and the imminence of an accommodating monetary pivot by central banks, which materialized in June 2024 for the ECB and September 2024 for the Fed.

The third phase, which has taken root since the beginning of the year, is that of the fundamental normalization of the various equity market segments. This phenomenon is traditionally observed at the end of an expansionary cycle.

 

Fundamental normalization boosted Value

This fundamental normalization explains the good performance of the Value segment and of small and mid-cap compartment in Europe during the first half of the year.

At the start of the year, all Value sectors, i.e. those with low valuations, were at a discount to their historical valuation standards. This is no longer the case. Conversely, the « expensive » sectors, notably the Visibility sectors (Food, Consumer Goods, Health Care, Media), exhibited a valuation premium at the start of the year, which their recent significant underperformance has gradually helped to normalize.

Source: FactSet/Chahine Capital. Data as of 30/06/2025.

 

The behaviour of the various geographies also contributes to this phenomenon of fundamental normalization. Europe’s strong outperformance is gradually reducing the historical discount observed at the start of the year. At the same time, the opposite phenomenon was observed in India and the United States during the half-year.

Source: FactSet/Chahine Capital. Data as of 30/06/2025.

 

Rising euro and trade tariff soap opera lift Europe’s domestic segments

This fundamental normalization in the first half of the year also lifted Europe’s most domestic market segments. This will surprise no one in a political context dominated by the new Trump administration’s threats of tariffs. All the more so as the euro rose sharply against the dollar, weighing on exporting companies in relative terms.

Banks, Insurance, Telecoms and Utilities stood out, as these sectors combine Value and domestic characteristics, unlike Consumer Goods, Healthcare or Automobiles.

This phenomenon also supported small and mid-cap stocks in relative terms. The latter generate only 13% of their sales in the United States, compared with 25% for large caps on average.

 

A more diversified Momentum in the second half?

The normalization process has been such that the fundamental discrepancies have now largely been rectified.

It would therefore not be surprising to see a gradual shift in the Momentum, which is currently highly polarized, towards segments that have been neglected.

Indeed, some segments have underperformed to such an extent that they are once again becoming attractive. In Europe, Food & Beverage, Healthcare, Consumer Goods, Luxury Goods and Automotive are all part of this trend. In the United States, a stabilization, or even a retracement, of the US dollar could boost small and mid-cap stocks in relative terms, which were neglected in the first half of the year.

The catalyst for this could be a larger-than-expected rate cut by the US Fed in the second half of the year, which would enable the Trump Administration to loosen its grip on tariffs and restore the confidence of investors scalded by the isolationist tendencies of the first half of the year.

Article by Stéphane Levy, Strategist and Head of Innovation, available in full on the L’Agefi website.

The stock market rally that began nearly three years ago continued during the first half of the year. The MSCI Europe NR rose 8.5% in euros, despite particularly intense political and geopolitical news. This increase did not affect all segments of the European market, and a powerful and atypical dispersion of performance was observed.

For example, the banking sector rose 29.1% in the first half of the year, while the consumer goods and healthcare sectors both fell 6.3%.

 

The rise of the euro and the ongoing saga of customs tariffs favoured domestic segments

This is a perfectly understandable and logical phenomenon in what could be the third and final phase of the stock market rally that began in autumn 2022.

The first phase, between September 2022 and October 2023, was one of relief linked to the economic cycle. The global economy proved much more resilient than anticipated, despite double-digit inflation at the time.

The second phase, between October 2023 and December 2024, was the positive consequence of the rapid decline in inflation and the imminent accommodative monetary pivot by central banks, which materialised in June 2024 for the ECB and September 2024 for the Fed.

The third phase, which has been underway since the beginning of the year, is one of fundamental normalisation across the various segments of the equity market. This phenomenon is traditionally observed at the end of an expansionary cycle.

Fundamental normalisation has boosted value

This is why value stocks and small and mid caps performed well during the first half of the year. At the beginning of the year, all value-dominated sectors, i.e. low-valuation sectors, were trading at a discount to their historical valuation standards. This is now less true. Conversely, ‘expensive’ sectors, particularly visibility sectors (agri-food, consumer goods, healthcare, media), had a valuation premium at the start of the year, which has gradually normalised due to their significant recent underperformance.

This fundamental normalisation in the first half of the year also boosted the most domestic market segments in Europe. This comes as no surprise in a political context dominated by the threat of tariffs from the new Trump administration. This is all the more true given that the euro has appreciated significantly against the dollar, which has weighed relatively heavily on exporting companies.

Banks, insurance, telecoms and utilities stood out because these sectors combine value and domestic characteristics, unlike consumer goods, healthcare and automotive sectors.

More diversified momentum in the second half of the year?

The normalisation process has been such that the fundamental inconsistencies we identified at the beginning of the year have now largely been resolved. It would therefore not be surprising to see a gradual shift in momentum, which is currently highly polarised, towards segments that are currently neglected in the coming months.

Some sectors have underperformed to such an extent that they are becoming attractive again. These include agri-food, healthcare, consumer goods, luxury goods and automotive.

One catalyst for this scenario could be a larger-than-expected interest rate cut by the US Federal Reserve in the second half of the year, which would allow the US administration to ease its grip on tariffs.