Edmond de Rothschild

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This site provides extensive information about the ranges of Edmond de Rothschild Group funds. In particular, it provides simplified access to key fund-related data (performance, net asset values, features) and their commercial or legal documents.

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EdR Fund Floating Rate Credit Corporate bonds

Corporate bonds
Change in NAV (14/11/2018)
97.98 EUR
Benjamine  NICKLAUS–LU1781814832–
Benjamine NICKLAUS
Léo ABELLARD–LU1781814832–
Léo ABELLARD
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
Between 12 and 24 months
97.98 EUR
Change in NAV (14/11/2018)
2
1234567
Risk and reward profile
Between 12 and 24 months
Recommended holding period
Change in NAV (14/11/2018)
97.98 EUR
Risk and reward profile
1234567
Recommended holding period
Between 12 and 24 months
Benjamine NICKLAUS  
Léo ABELLARD  
The identity of the managers presented in this document may change during the life of the product.
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Investment objective

The Sub-Fund's investment objective is to outperform its benchmark, net of management fees, over an investment horizon of one to two years, through a portfolio representing investment opportunities present on the short-term corporate credit markets.

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Commentary 28/09/2018

In September, credit spreads narrowed across the board , as fading macro concerns and an uptick in demand offset tighter Fed policy and robust corporate bond supply. In this risk on environment, BBB rated debt logically outperformed better rated issuers. This is true for both the EUR and US investment grade corporate debt markets. This positive performance posted in September happened in the context of very heavy primary issuance (top monthly volume year-to-date) ,which is highlighting the resilience of credit spreads. US IG spreads contracted by 10 bps for 7 to 10 year maturities, with EUR IG spreads contracting by 7 bps. Energy, transportation and financials were the best performers in Europe while telecom, metals&mining, and media led the market in the US. The ECB maintained the deposit rate unchanged but Mario Draghi signaled after the meeting that he sees a“relatively vigorous pick-up in inflation”, reinforcing view that the ECB could start hiking rates in autumn 2019. The FED also held a no-surprise meeting, hiking rates for the third time of the year by 0.25%. Finally the Bank of Japan left its main rate unchanged,while also making its first cut in purchase ranges for bonds due in more than a year since August 2017. Despite trade tension flaring up with annonced 10% tariffs on further USD 200 billion of Chinese imports investors adopting a wait-and-see attitude due to negotiations on the Italian budget, the European High Yield market performed quite well with a 25bps tightening of the Xover index. High Yield Cash bonds Index performed by 0.25% total return over the month thanks to a 14bps spread tightening with an outperfomance of BB's versus single B's and CCC. In september, the primary market reopened with among others Jaguar, IGT, Refinitiv, Getlink and Guala Closures. On the financial debts side, Spreads tightened, driven by expectations of an Italian budget in line with European standards. The announcement of Italy's budget deficit at September's end, at -2.4% of GDP, however, disappointed investors, wiping out some of the month's performance. Nevertheless, most segments managed to post positive performances. The insurance sector, particularly perpetuals (+0.46%) and euro-denominated CoCos (+0.45%), performed particularly well. Note, too, the strong performance recorded by Banking Tier 2's (+0.49%). Several money-laundering investigations were openned into Danske Bank regarding its Estonian subsidiary between 2007 and 2015. Its bonds took a beating. Ratings agencies lowered the bank's outlook from stable to negative. Numerous primary CoCos issues were launched this month, with an issue total of €6.2 billion. The Spanish market was particularly dynamic with CoCos issued by Abanca (7.5% coupon), BBVA (5.875% coupon) and Bankia (6.375% coupon). In the insurance sector, Groupama and Phoenix issued Tier 2 bonds with a 10-year maturity (with coupon at 3.375%) and 11 years (4.375% coupon).

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Fund information

Inception Date (Fund)
07/01/1999
Inception Date (Part)
03/04/2018
Legal form
SICAV
Benchmark
EURIBOR EUR 3M
250BP
Currency (fund)
EUR
Currency (share class)
EUR
Distribution Policy
Accumulation
Valuation frequency
Daily
Minimum initial investment
1 Share
ISIN Code
LU1781814832
AuM (fund)
156 M (EUR)
Regulatory authority
CSSF
Management company
Edmond de Rothschild Asset Management (Luxembourg)
Delegated Management Company
Edmond de Rothschild Asset Management (France)
Incorporation
Luxembourg
Maximum management fee
0,600 %
Current management fee
0.600 %
Subscription and redemption conditions
Daily before 12.30 am C.E.T. on day's net asset value
Subscription fee
1.00 % max
Performance fee
15,000 %

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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