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EdR Euro Sustainable Credit Corporate bonds

Corporate bonds
Change in NAV (20/06/2017)
109.37 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)
1234567
Recommended holding period
> 2 years
109.37 EUR
Change in NAV (20/06/2017)
3
1234567
Risk and reward profile
> 2 years
Recommended holding period
Change in NAV (20/06/2017)
109.37 EUR
Risk and reward profile
1234567
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.
Contact

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 31/05/2017

One of the most problematic hurdles for the European bond market was crossed in May: political populism in France. The election of Emmanuel Macron as President of France, with 66.1% of votes, against 33.9% for the populist Marine le Pen, saw credit risk premiums returning to their lows: 65 bps and 250 bps respectively for the iTraxx Main and CrossOver indices. And for the time being, there is nothing to suggest they'll widen again in the short term. The euro zone's economic indicators are now in green territory, with good quarterly earnings reports and declining volatility. The technical parameters are strong enough to ignore other political risks, such as the possibility of a Trump impeachment, or Brazilian President Temer's shenanigans. It seems that only a radical change in the ECB's QE programme or a negative result to the Italian elections could ruffle the current good weather in the universe of high yield credit. The market's various segments are continuing to perform well, if at a slower pace. A positive performance was recorded by various segments of the market for financial subordinates. The insurance sector outperformed during the month. Cocos also did very well, particularly when denominated in USD. The weakest performance came from euro-denominated Cocos (+0.71%), which could possibly be linked to Banco Popular. This Spanish bank, which came under severe market pressure, is currently considering two main options. The first would be a capital increase, or the second a takeover by another entity. Moreover, the difficulties encountered by Banco Popular have impacted other Spanish AT1s including Santander, BBVA and Sabadell. May was also positive for the European corporate market in investment grade credit. Macron's election in France triggered a significant reduction in European political risk and generated positive sentiment for credit. Spreads on investment grade corporate credit narrowed slightly in all sectors (although most of the gains were recorded immediately after the first round of the elections in April). The iTraxx Europe CDS investment grade index went from 67 to 62. Macroeconomic numbers in the euro zone were pretty good, with figures for growth, employment, confidence and manufacturing output continuing to make gains in May. However, the yield on the 10-year bund changed little as inflation numbers came in lower than expected. Despite the improved economic environment, the ECB has given no indication of a change in its monetary policy.

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Change in NAV

Chart – Base 100 (20/06/2017)
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 D-EUR Cumulative Annualised
Since 01/01/2017

2.86 %

1.38 %

2.86 %

1.38 %

1 Year

5.41 %

2.48 %

5.41 %

2.48 %

3 Year

9.04 %

9.41 %

2.93 %

3.04 %

5 year

24.88 %

26.33 %

4.54 %

4.78 %

Since inception

30.47 %

39.17 %

3.67 %

4.58 %

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

Share class (D-EUR)

Benchmark

2.86 %

1.38 %

5.41 %

2.48 %

9.04 %

9.41 %

24.88 %

26.33 %

30.47 %

39.17 %

Annualised

Share class (D-EUR)

Benchmark

5.41 %

2.48 %

2.93 %

3.04 %

4.54 %

4.78 %

3.67 %

4.58 %

*Rolling periods

Annual performance



Statistics

VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
Share class D-EURBenchmarkShare class D-EURBenchmarkShare class D-EURBenchmarkShare class D-EURBenchmarkShare class D-EURBenchmark
1 Year*2.30 %2.35 %1.27 %0.85 %2.02 %1.20 %
3 Year *3.27 %2.85 %1.40 %0.90 %-0.14 %1.15 %
Max. drawdownAlphaBeta
Share class D-EURBenchmarkShare class D-EURBenchmarkShare class D-EURBenchmark
1 Year*-1.94 %0.05 %0.83 %
3 Year *-4.89 %-0.02 %1.04 %
Max. monthly gain Since inception3.37 %
Max. monthly loss Since inception-3.89 %
Share class D-EUR
Benchmark
1 Year* 3 Year * 1 Year* 3 Year *
Volatility 2.30 % 3.27 % 2.35 % 2.85 %
Tracking Error 1.27 % 1.40 %
Sharpe ratio 1.20 % 1.15 %
Alpha 0.05 % -0.02 %
Correlation coefficient 0.85 % 0.90 %
Information ratio 2.02 % -0.14 %
Max. monthly loss -3.89 %
Max. monthly gain 3.37 %
Max. drawdown -1.94 % -4.89 %
Beta 0.83 % 1.04 %

Fund information

Inception Date (Fund)
24/06/1982
Inception Date (Part)
03/02/2010
Legal form
Mutual Fund
Benchmark
BarCap Euro-Aggregate Corporates (EUR)
Currency (fund)
EUR
Currency (share class)
EUR
Distribution Policy
Distribution
Valuation frequency
Daily
Minimum initial investment
1 Share
ISIN Code
FR0010789313
AuM (fund)
83 M (EUR)
Regulatory authority
AMF
Management company
Edmond de Rothschild Asset Management (France)
Incorporation
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
Subscription fee
1.00 % max

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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