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 (17/08/2018)
97.19 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
97.19 GBP
Change in NAV (17/08/2018)
Risk and reward profile
> 3 years
Recommended holding period
Change in NAV (17/08/2018)
97.19 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 31/07/2018

The market was up, buoyed by solid figures in the United States and Europe (particularly Germany), and by easing fears of a trade war. These concerns were nevertheless still present, especially in mid-July, and resulted in short episodes of spread drift during the month. Political tensions in Germany and England, as well as a brief return for Italian political risk, were a source of concern for investors, but they only briefly slowed the uptrend. It also accelerated in late July, following trade talks between Europe and the United States and an unsurprising view by the ECB. This month has seen positive performances in most segments. The insurance sector experienced a strong rebound particularly on perpetuals, which have tightened by 68 bps (with performance at 3.55% against 2.41% for Tier 2). In the same way, EUR and USD denominated CoCos posted very strong performances at 1.96% and 2.43%. Banking Tier 2 issues also achieved a positive performance (0.93%). Meanwhile, European banks have started publishing their Q2 results. The Scandinavian banks reported respectable figures. However, there were rather unsatisfactory operating results for Danske Bank, with a dip in revenue and uncertainties over fines related to money-laundering. Spanish banks have also been posting good results, except Sabadell which, despite its respectable income, has had to deal with larger-than-expected provisions. Meanwhile, UBS and Credit Suisse surprised the market with net profits rising sharply year-on-year. At the regulatory level, the Dutch government announced an end to tax deductibility on coupons for Additional Tier 1 and Restricted Tier 1 bonds as of January 1, 2019. This could constitute a Tax Event and lead to a recall at par for certain bonds. However, ABN AMRO, Rabobank, ASR and Vivat have already indicated that they do not want to exercise this option. In addition, the EBA has decided not to open an in-depth investigation into the classification of Unicredit's ‘Cashes' (Convertible And Subordinated Hybrid Equity-linked Securities), which are currently recognised as CET1 capital (which has been challenged by Caius Capital Fund). On the primary market, Credit Suisse issued an Additional Tier 1 bond with a 7.50% coupon for $2 billion. The insurers P&V Assurance and Vittoria Assicurazioni, based in Belgium and Italy, have issued Tier 2 bonds for approximately €390 million and €250 million (with 5.50% and 5.75% coupons).

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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)
2,051 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.