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EdR Euro Sustainable Credit Corporate bonds

Corporate bonds
NAV (22/02/2017)
108.43 EUR
Alexis  FORET–FR0010789313–
Alexis FORET
Raphaël CHEMLA–FR0010789313–
Raphaël CHEMLA
The identity of the managers presented in this document may change during the life of the product.
Risk and reward profile (1)
Recommended holding period
> 2 years
108.43 EUR
NAV (22/02/2017)
Risk and reward profile
> 2 years
Recommended holding period
NAV (22/02/2017)
108.43 EUR
Risk and reward profile
Recommended holding period
> 2 years
Alexis FORET  
Raphaël CHEMLA  
The identity of the managers presented in this document may change during the life of the product.

Investment objective

The UCITS aims to outperform its benchmark index over the recommended investment period through investments on the corporate bond markets that seek to combine financial profitability and the implementation of a sustainable development policy in return for a risk of capital loss.

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Commentary 31/01/2017

The New Year opened under better auspices than 2016. Leading financial markets closed in neutral to positive territory, with the exception of European government bonds. Rising numbers on the PMI indices confirm the improvement in business and consumer confidence, serving to get cyclical stocks back into the headlines. On the corporate side, the quarterly reporting season is in full swing. It got off to a good start with positive growth in all regions and most companies publishing better-than-expected numbers. The weakness of European sovereign bonds was very marked this month. The market was surprised by a number of euro zone economic indicators (notably inflation) which were greater than expected, and by uncertainties over the political future of Europe. The corporate investment grade market outperformed sovereign debt, but could nevertheless not help being pulled down by the general downtrend. Credit has been supported by strong technical factors, high subscription rates for mutual funds, and the resumption of ECB repurchasing at a sustained pace after the year-end slowdown, hitting a weekly average of €1.8 billion. In this environment, credit indices are trading at relatively tight levels, with the iTraxx Crossover at 300 bps, relatively unchanged over the month. The primary market for high yields was not as dynamic as expected, working partly to the benefit of the syndicated loan market. However, the so-called scarcity of new issues, a very significant additional technical factor, has served to sustain credit risk premiums on the secondary market. Note the inaugural euro issue for Jaguar Land Rover (€500 million in senior notes at 7 years), followed by a tap on its existing 2021 bond in GBP. Then there are the jumbo bonds, issued by Telecom Italia (€1 billion dated 2023) and Ardagh ($1 billion 2025). More generally, we note that issuers have been seizing advantage of this environment to refinance existing debt and extend their redemption profiles. The European Commission has approved the Areva rescue plan (with a €4.5 billion injection from the French state) under a number of conditions, and in particular that Areva's reactor business is sold off. M&A news has been plentiful with Essilor and Luxotica merging, Safran has announced its acquisition of Zodiac Aerospace. Loxam is set to buy Lavendon for nearly €720 million, as TVH bows out. Lower-rated credit outperformed, while financial bonds outperformed industrials. The market for financial subordinates recorded positive performances, except in the Tier 2 banking segment which was penalised by the rise in European interest rates (+1.05% on the CoCo Euro Index, -0.03% for the Tier 2 banking index, +0.35% on the Tier 2 insurance index). The primary market was highly active in the AT1 segments (with issuance hitting €3.5 billion) and in the insurance sector (€4.5 billion) in the first half of January.

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Change in NAV

Chart – Base 100 (22/02/2017)
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 D-EUR Cumulative performance Annualised performance
Since 01/01/2017 0.58 %  
1 Year 7.20 % 7.18 %
3 Year 9.23 % 2.98 %
5 year 23.62 % 4.33 %
Since inception 27.58 % 3.51 %
Performance D-EUR Since 01/01/2017 1 Year 3 Year 5 year Since inception
Cumulative performance 0.58 % 7.20 % 9.23 % 23.62 % 27.58 %
Annualised performance 7.18 % 2.98 % 4.33 % 3.51 %


1 Year3 Year
Share class D-EUR2.66 %3.24 %
Benchmark2.33 %2.82 %
Share class D-EUR
1 Year 3 Year 1 Year 3 Year
Volatility 2.66 % 3.24 % 2.33 % 2.82 %
Tracking Error

Fund information

Inception Date (Fund)
Inception Date (Part)
Legal form
Mutual Fund
BarCap Euro-Aggregate Corporates (EUR)
Currency (fund)
Currency (share class)
Distribution Policy
Valuation frequency
Minimum initial investment
1 Share
AuM (fund)
78 M (EUR)
Regulatory authority
Management company
Edmond de Rothschild Asset Management (France)
Maximum management fee
1,000 %
Current management fee
1.000 %
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.