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EdR Fund Euro IG Corporate Bonds Corporate bonds

Corporate bonds
Change in NAV (15/11/2017)
107.16 EUR
Mark  KOWALSKI–LU1080014530–
Mark KOWALSKI
Marc LACRAZ–LU1080014530–
Marc LACRAZ
The identity of the managers presented in this document may change during the life of the product.
Risk and reward profile (1)
1234567
Recommended holding period
> 2 years
107.16 EUR
Change in NAV (15/11/2017)
3
1234567
Risk and reward profile
> 2 years
Recommended holding period
Change in NAV (15/11/2017)
107.16 EUR
Risk and reward profile
1234567
Recommended holding period
> 2 years
Mark KOWALSKI  
Marc LACRAZ  
The identity of the managers presented in this document may change during the life of the product.
Contact

Investment objective

The goal of the EDR fund EUR IG Corporate Bonds is to outperform the Bank of America Merrill Lynch 1-10 Year Euro Corporate Index.

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Commentary 31/10/2017

European credit performed strongly in October, despite investor' anticipation about ECB's policy meeting at the end of the month. Mario Draghi's announcement of a 9-month extension to QE at half the current rate has been seen as supportive for credit markets and led to an acceleration in the pace of spread compression. The ECB also left the door open to extend the program if necessary. The tussle between Madrid and Catalonia dominated news this month but had very limited impact on credit markets. Over the month, Investment Grade corporate bonds performed strongly, with both the CDS index and cash bonds tightening by 7 bps, and High Yield corporate cash bonds tightened by 23bps while iTraxx XOver tightened by 27bps. Credit was also helped by falling benchmark yields, also driven by relief over the ECB (10 year bund yield fell 10 bps, from 0.46% to 0.36%). On the supply side, European High Yield experienced the strongest supply month on record, with surely the deal of the year being Wind Tre's refinancing. Wind Tre, the new operator emerging from the 50-50 joint venture between Wind and Hutchison's 3 Italia, has completed the largest euro high-yield debt sale on record, issuing a secured bond in five tranches amounting to EUR 7.3 billion, with investor orders topping EUR 25 billion. Following this jumbo financing, 2017 has already become the best-ever year for high-yield bond issuance in Europe, with more than 80bn euros-equivalent of bonds so far this year, surpassing the previous highest total of 73.7 billion euros in 2014. In company news, despite the recently announced partnership with Airbus, Bombardier was downgraded by Moody's from B2 to B3 and the outlook was cut to negative, thereby sending its bond ratings into Caa1. Spanish construction company OHL (Caa1) intends to sell its entire stake in OHL Concesiones to Australian infrastructure fund IFM for €2.23bn. That will allow OHL to repay all its gross debt (€1.38bn as of June 30). Nyrstar (metals, B3/B-) saw quarterly sales rise 33% and EBITDA 35%. Maxeda (B2/B), a Dutch company specialising in DIY stores, saw second quarter sales slip due to less favourable weather and fewer Sunday openings.

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Change in NAV

Chart – Base 100 (15/11/2017)
Avertissement
You are about to download the historical data for a portfolio. Please note that past performance is not an indication of future performance and it may vary over time. They may be affected, for example, by changes in exchange rates


Performance I-EUR Cumulative Annualised
Since 01/01/2017

2.53 %

2.49 %

2.53 %

2.49 %

1 Year

2.77 %

2.94 %

2.77 %

2.94 %

3 Year

5.45 %

7.21 %

1.78 %

2.34 %

Since inception

7.16 %

9.42 %

2.10 %

2.74 %

Since 01/01/2017 1 Year 3 Year 5 year Since inception
Cumulative

Share class (I-EUR)

Benchmark

2.53 %

2.49 %

2.77 %

2.94 %

5.45 %

7.21 %

7.16 %

9.42 %

Annualised

Share class (I-EUR)

Benchmark

2.77 %

2.94 %

1.78 %

2.34 %

2.10 %

2.74 %

*Rolling periods

Annual performance



Statistics

VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
Share class I-EURBenchmarkShare class I-EURBenchmarkShare class I-EURBenchmarkShare class I-EURBenchmarkShare class I-EURBenchmark
1 Year*1.79 %1.85 %0.50 %0.96 %-0.38 %1.51 %
3 Year *2.58 %2.31 %0.57 %0.98 %-1.08 %1.20 %
Max. drawdownAlphaBeta
Share class I-EURBenchmarkShare class I-EURBenchmarkShare class I-EURBenchmark
1 Year*-1.35 %0.93 %
3 Year *-3.99 %-0.07 %1.09 %
Max. monthly gain Since inception1.47 %
Max. monthly loss Since inception-1.69 %
Share class I-EUR
Benchmark
1 Year* 3 Year * 1 Year* 3 Year *
Volatility 1.79 % 2.58 % 1.85 % 2.31 %
Tracking Error 0.50 % 0.57 %
Sharpe ratio 1.51 % 1.20 %
Alpha -0.07 %
Correlation coefficient 0.96 % 0.98 %
Information ratio -0.38 % -1.08 %
Max. monthly loss -1.69 %
Max. monthly gain 1.47 %
Max. drawdown -1.35 % -3.99 %
Beta 0.93 % 1.09 %

Fund information

Inception Date (Fund)
24/05/2005
Inception Date (Part)
21/07/2014
Legal form
SICAV
Benchmark
BofA Merrill Lynch 1-10 Year Euro Corporate
Currency (fund)
EUR
Currency (share class)
EUR
Distribution Policy
Accumulation
Valuation frequency
Daily
Minimum initial investment
500000.00 EUR
ISIN Code
LU1080014530
AuM (fund)
168 M (EUR)
Regulatory authority
CSSF
EU Regulation
UCITS
Management company
Edmond de Rothschild Asset Management (Luxembourg)
Delegated Management Company
Edmond de Rothschild (Suisse) S.A.
Incorporation
Luxembourg
Maximum management fee
0,375 %
Current management fee
0.375 %
Subscription and redemption conditions
Daily before 12.30 am C.E.T. on day's net asset value

Fund documentation

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(1) The rating grades the funds on a scale from 1 to 7. This rating system is based on the average fluctuations of the net asset value over the past five years. It corresponds to the variation range of the portfolio upwards and downwards. If the net asset value is less than 5 years old, the rating is determined by other regulatory calculation methods. Historical data such as those used to calculate the rating may not be a reliable indication of the future risk profile. The current category is neither a guarantee nor an objective. Category 1 does not signify a risk-free investment.

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