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 Financial Bonds Corporate bonds

Corporate bonds
Change in NAV (16/11/2018)
95.75 GBP
Julien  de SAUSSURE–FR0013307683–
Julien de SAUSSURE
Benjamine NICKLAUS–FR0013307683–
Benjamine NICKLAUS
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
> 3 years
95.75 GBP
Change in NAV (16/11/2018)
Risk and reward profile
> 3 years
Recommended holding period
Change in NAV (16/11/2018)
95.75 GBP
Risk and reward profile
Recommended holding period
> 3 years
Julien de SAUSSURE  
Benjamine NICKLAUS  
The identity of the managers presented in this document may change during the life of the product.

Investment objective

The UCITS' objective is to outperform the Bank of America Merrill Lynch EMU Financial Corporate Index over the recommended investment period through a portfolio exposed to bonds issued primarily by international financial institutions.

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Commentary 31/10/2018

Peripheral issuers were at the centre of attention this month. Italian banks suffered from the uncertain path facing the country's debt and its first complicated exchanges with the European Commission on its budget. Strong hikes in the 10-year Italian bond yield (to levels not seen since 2014) troubled investors. However, the market seemed modestly reassured by the rating agencies decisions: Moody's downgraded Italy's sovereign rating by one notch to but kept its outlook stable (Baa3 stable), while S&P downgraded its only it's outlook, to negative (BBB neg). The decision by Spain's Supreme Court to render stamp duties on real estate transactions chargeable to banks rather than clients — suspended for further reflection to November 5 — has been a source of pressure on Spanish issuers. Meanwhile, Portugal has moved back into the Investment Grade category, with Moody's being the last agency to lift the country's rating to Baa3. Given the climate of weakness facing issuers in Italy and Spain, spreads have widened. The somewhat inconclusive negotiations on Brexit, and trade tensions have also impacted the market. In particular, the insurance segment underperformed, with insurance perpetuals widening 44 bps. Euro CoCos were at -1.39% against -1.03% for those in USD. But there was a modest rally at October's end, in the wake of the rating agencies' recent announcements. The reporting season began with the results from Scandinavian, Spanish, Swiss and UK banks. Earnings were above the consensus at Lloyds, UBS and Santander (CET1 capital ratio already above the 11% target), but Deutsche Bank and Nordea proved rather disappointing. Dankse Bank is still undergoing several money laundering investigations in Estonia, and confirms it has also received information requests from the US regulator. Similar concerns spread to other Scandinavian banks at the beginning of October but these have, for the moment, managed to reassure the market. The primary market was pretty lack-lustre. Lloyds issued an AT1 bond with 7.5% coupon for $1.5 billion. But Aegon (insurance) has postponed its issuance of a Restricted Tier 1 bond, citing unfavourable market conditions.

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Fund information

Inception Date (Fund)
Inception Date (Part)
Legal form
Mutual Fund
ICE BofAML Euro Financial
Currency (fund)
Currency (share class)
Distribution Policy
Valuation frequency
Minimum initial investment
1 Share
AuM (fund)
1,934 M (EUR)
Regulatory authority
EU Regulation
Management company
Edmond de Rothschild Asset Management (France)
Maximum management fee
0,850 %
Current management fee
0.850 %
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
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.