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EdR Euro Sustainable Credit Corporate bonds

Corporate bonds
Change in NAV (18/10/2017)
110.61 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
110.61 EUR
Change in NAV (18/10/2017)
3
1234567
Risk and reward profile
> 2 years
Recommended holding period
Change in NAV (18/10/2017)
110.61 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 31/08/2017

World market trends were slightly more conservative in August. Sovereign benchmark bonds posted positive performances, with a 20 bps decline in yields on the US 10-year T-Note and Germany's 10-year bund. The market has distanced the prospects of monetary tightening by the central banks. In the euro zone, investors are becoming less concerned about a drastic shift in the ECB's policy on QE, despite the robustly positive economic data. The strength of the single currency could put fresh pressure on the ECB, however. The market now expects the next US Federal Reserve rate hike in 2018, given its disappointment at the unchanging inflation data. The Jackson Hole meeting of world central bankers was rather quiet with neither Janet Yellen nor Mario Draghi hinting at any changes in monetary policy. After an almost unrelenting tightening in corporate spreads this year, a lull was finally seen in August. Geopolitical tensions intensified, the VIX was soaring by mid-month, and equity markets were sluggish or even dropping, depending on the region. Investment grade spreads increased modestly. While July was risky, due to the recovery in stock markets and the continued tightening of credit spreads, August saw a change in momentum. Credit spreads widened on tensions related to North Korea. US high yield bond spreads widened to 35 bps, compared with 20 bps for their European counterparts. Although the excellent economic environment justifies lowering risk premiums to below their long-term average, central bank repurchasing has led to a lack of risk differentiation across the sectors. The potential announcement of a gradual reduction in securities repurchasing and some QE by the ECB will be monitored closely over the next few weeks. Numbers on confidence in the euro zone have remained strong. August yields were positive, although lower than the previous month's. Construction & Materials as well as Oil & Gas (both +0.6% over the month) were the top performers. BB (+0.20%) and B (+0.33%) ratings performed similarly, although the decline in German 10-year bund yields (-16 bps) had a positive impact on long assets. CCC rated issues posted a slightly better performance, which led to their outperforming (+0.40%). August saw an underperformance by euro and dollar Cocos, and insurance perpetuals, offset by a modestly positive performance from the Tier 2 banking and insurance segment. There were several developments in August associated with efforts to clean-up the banking system. Banca Carige announced a plan to increase its solvency at the beginning of the month. In Portugal, Novo Banco unveiled a plan to optimise liabilities. Few primary issues were made during the month. Barclays issued an AT1 bond for £1.25 billion GDP with a 5.875% coupon, while UBS floated a senior bond in two tranches in USD, with fixed or floating coupons and a six-year maturity.

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Change in NAV

Chart – Base 100 (18/10/2017)
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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

4.03 %

2.34 %

4.03 %

2.34 %

1 Year

3.85 %

1.45 %

3.85 %

1.45 %

3 Year

9.44 %

8.23 %

3.05 %

2.67 %

5 year

20.20 %

21.04 %

3.75 %

3.89 %

Since inception

31.95 %

40.49 %

3.66 %

4.51 %

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

Share class (D-EUR)

Benchmark

4.03 %

2.34 %

3.85 %

1.45 %

9.44 %

8.23 %

20.20 %

21.04 %

31.95 %

40.49 %

Annualised

Share class (D-EUR)

Benchmark

3.85 %

1.45 %

3.05 %

2.67 %

3.75 %

3.89 %

3.66 %

4.51 %

*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*2.08 %2.31 %1.19 %0.86 %2.42 %0.39 %
3 Year *3.30 %2.86 %1.36 %0.91 %0.23 %0.95 %
Max. drawdownAlphaBeta
Share class D-EURBenchmarkShare class D-EURBenchmarkShare class D-EURBenchmark
1 Year*-1.74 %0.06 %0.78 %
3 Year *-4.89 %0.02 %1.05 %
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 2.08 % 3.30 % 2.31 % 2.86 %
Tracking Error 1.19 % 1.36 %
Sharpe ratio 0.39 % 0.95 %
Alpha 0.06 % 0.02 %
Correlation coefficient 0.86 % 0.91 %
Information ratio 2.42 % 0.23 %
Max. monthly loss -3.89 %
Max. monthly gain 3.37 %
Max. drawdown -1.74 % -4.89 %
Beta 0.78 % 1.05 %

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)
97 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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