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EdR Emerging Convertibles Convertible bonds

Convertible bonds
Change in NAV (17/08/2017)
117.44 EUR
Laurent  LE GRIN–FR0010842419–
Laurent LE GRIN
Thibaud BAILLY–FR0010842419–
Thibaud BAILLY
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
> 3 years
117.44 EUR
Change in NAV (17/08/2017)
3
1234567
Risk and reward profile
> 3 years
Recommended holding period
Change in NAV (17/08/2017)
117.44 EUR
Risk and reward profile
1234567
Recommended holding period
> 3 years
Laurent LE GRIN  
Thibaud BAILLY  
The identity of the managers presented in this document may change during the life of the product.
Contact

Investment objective

The UCITS' investment objective, over a recommended investment period of more than three years, is to outperform its benchmark, the Thomson Reuters Growth Markets Hedged CB Index (USD) for units denominated in US dollars, by mainly selecting convertible or exchangeable bonds, whose underlying equity is relative to a company conducting the majority of its activity in emerging countries or which has its registered office in an emerging country.

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Commentary 31/07/2017

As a consequence of Janet Yellen's reiteration that inflation in the US was still below target and the turmoil affecting President Trump, weaker dollar propelled emerging markets stocks in July with MSCI Emerging Index finishing the month at 4.89%. Another positive factor was oil price that increased 9% going back to 50 USD levels. China's GDP in Q2 came at 6.9% beating estimates, supported by strong consumption. A notable outperformer was Hang Seng Index that added 6.05% in July for a total YTD performance of 24.20%. As a consequence we took profits on some high delta Asian names that outperformed in July like Nanya Tech CB, Tencent calls, ENN Energy CB and Ctrip.com 2020 CB, which we switched to lower delta 2022 CB. Instead we have added new position in Telenor/Veon 2019 exchangeable bond that has more balanced profile. Veon (previously known as Vimplecom) is a telecom company operating in Russia, CIS countries, Bangladesh, Algeria and Pakistan. Russian inflation has declined to 3.9% in July, the lowest level since 2012. We have also added to our position in Gedeon Richter CB after recent stock underperformance. With the sale of high delta ENN we decided to buy lower delta Kunlun Energy 2019 CB that was also cheap in terms of implied volatility. Convertibles primary market saw a revival of Asian deals. We had a jumbo deal from China with Shanghai International Port issuing 2 tranche 1 bn USD 4 & 5 year bonds exchangeable into shares of Postal Saving Bank of China; the proceeds of these premium redemption bonds with 0.75% yield will be used for refinancing. A property developer from Thailand Singha Estate issued 180 mln USD 2% 2022 convertible, simultaneously raising 1.66 bn THB for development projects and acquisitions. And Chinese Biotech Company 3SBio came to market with 300 mln USD 0% 2022 convertible for refinancing and R&D, we have participated in this deal.

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Change in NAV

Chart – Base 100 (17/08/2017)
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 B-EUR Cumulative Annualised
Since 01/01/2017

3.62 %

2.42 %

3.62 %

2.42 %

1 Year

3.85 %

2.18 %

3.85 %

2.18 %

3 Year

3.47 %

8.30 %

1.14 %

2.69 %

5 year

14.46 %

26.48 %

2.74 %

4.81 %

Since inception

17.46 %

41.55 %

2.13 %

4.66 %

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

Share class (B-EUR)

Benchmark

3.62 %

2.42 %

3.85 %

2.18 %

3.47 %

8.30 %

14.46 %

26.48 %

17.46 %

41.55 %

Annualised

Share class (B-EUR)

Benchmark

3.85 %

2.18 %

1.14 %

2.69 %

2.74 %

4.81 %

2.13 %

4.66 %

*Rolling periods

Annual performance



Statistics

VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
Share class B-EURBenchmarkShare class B-EURBenchmarkShare class B-EURBenchmarkShare class B-EURBenchmarkShare class B-EURBenchmark
1 Year*2.89 %3.45 %1.31 %0.93 %0.85 %1.33 %
3 Year *4.87 %5.23 %1.59 %0.95 %-0.99 %0.61 %
Max. drawdownAlphaBeta
Share class B-EURBenchmarkShare class B-EURBenchmarkShare class B-EURBenchmark
1 Year*-1.72 %0.04 %0.78 %
3 Year *-10.60 %-0.10 %0.89 %
Max. monthly gain Since inception5.60 %
Max. monthly loss Since inception-9.20 %
Share class B-EUR
Benchmark
1 Year* 3 Year * 1 Year* 3 Year *
Volatility 2.89 % 4.87 % 3.45 % 5.23 %
Tracking Error 1.31 % 1.59 %
Sharpe ratio 1.33 % 0.61 %
Alpha 0.04 % -0.10 %
Correlation coefficient 0.93 % 0.95 %
Information ratio 0.85 % -0.99 %
Max. monthly loss -9.20 %
Max. monthly gain 5.60 %
Max. drawdown -1.72 % -10.60 %
Beta 0.78 % 0.89 %

Fund information

Inception Date (Fund)
31/12/2009
Inception Date (Part)
31/12/2009
Legal form
Mutual Fund
Benchmark
Thomson Reuters Growth Markets CB Idx Hedged (EUR)
Currency (fund)
USD
Currency (share class)
EUR
Distribution Policy
Accumulation
Valuation frequency
Daily
Minimum initial investment
1 Share
ISIN Code
FR0010842419
AuM (fund)
18 M (USD)
Regulatory authority
AMF
Management company
Edmond de Rothschild Asset Management (France)
Delegated Management Company
Edmond de Rothschild Asset Management (France)
Incorporation
France
Maximum management fee
1,800 %
Current management fee
1.800 %
Subscription and redemption conditions
Daily before 4.30 pm C.E.T.on next day's net asset value
Subscription fee
1.00 % max
Performance fee
20,000 %

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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