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EdR Fund Convertible Europe All Caps Convertible bonds

Convertible bonds
NAV (23/02/2017)
106.19 EUR
Laurent  LE GRIN–LU1054232688–
Laurent LE GRIN
Kris DEBLANDER–LU1054232688–
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
106.19 EUR
NAV (23/02/2017)
Risk and reward profile
> 2 years
Recommended holding period
NAV (23/02/2017)
106.19 EUR
Risk and reward profile
Recommended holding period
> 2 years
Laurent LE GRIN  
The identity of the managers presented in this document may change during the life of the product.

Investment objective

The objective of this Sub-Fund is to achieve medium term capital growth by managing a portfolio of fixed income securities convertible into stock of companies domiciled in European countries or exercising a preponderant part of their economic activity in that region.

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Commentary 31/01/2017

The January effect was short lived. Investors bought stocks following Trump's election, betting on more aggressive US reflation economic policy, but sold the market beyond the inauguration day as the new President's immigration ban damaged sentiment. Nonetheless, estimates for earnings growth remain favourable, with +20% expected for the UK and +12% for the Eurozone and the US in 2017. Ageas Fresh contributed positively to performance. The Belgian insurer will report mid-February and we expect a nice set of results. The more positive interest rate context should also help to raise more premiums. Ageas could also take part in M&A activities and BNP could exercise its right to sell 25% of AG Insurance back. Within the insurance sector our positioning in Generali through call options delivered a strong performance. The portfolio also benefited from Sacyr 2019 and Kering. Both STM 2019 and 2021 rose strongly after results given higher operating margins and a big contract announced with Apple. During the month we restruck our call option on Generali, Allianz and Ageas. We sold our holdings in the convertible bonds of Brait. We took profits on our Credit Agricole call options as we do not see further significant upside. We cut our holding in Inmarsat as we feel the newsflow around competitive pressure could become more negative for the credit. We bought or increased some holdings in convertible bonds such as Air France, UbiSoft, Rallye 2018 and Indra Sistemas 2018 to invest cash. We participated in the new plain-vanilla convertible bond issue from Prysmian for which the credit profile is healthy and potential for margin upside could awaken the equity valuation. However, we avoided the non-dilutive Michelin 2022 as the underlying valuation is too rich in our view. We did the same for the new Immofinanz as we are not confident enough in the creditworthiness of the company. We end the month with portfolio equity sensitivity around 40%. We continue to hold protection through put options on the Euro Stoxx 50 maturing in March with a strike of 3,200.

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Change in NAV

Chart – Base 100 (23/02/2017)
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 I-EUR Cumulative performance Annualised performance
Since 01/01/2017 1.74 %  
1 Year 10.28 % 10.25 %
Since inception 6.19 % 2.18 %
Performance I-EUR Since 01/01/2017 1 Year 3 Year 5 year Since inception
Cumulative performance 1.74 % 10.28 % 6.19 %
Annualised performance 10.25 % 2.18 %


VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
1 Year1 Year1 Year1 Year1 Year
Share class I-EUR6.18 %2.70 %0.90 %1.68 %1.06 %
Benchmark5.05 %
1 Year1 Year
Share class I-EUR0.07 %1.11 %
Share class I-EUR
1 Year 3 Year 1 Year 3 Year
Volatility 6.18 % 5.05 %
Tracking Error 2.70 %
Sharpe ratio 1.06 %
Alpha 0.07 %
Correlation coefficient 0.90 %
Information ratio 1.68 %
Beta 1.11 %

Fund information

Inception Date (Fund)
Inception Date (Part)
Legal form
Exane Euro Convertibles Index
Currency (fund)
Currency (share class)
Distribution Policy
Valuation frequency
Minimum initial investment
500000.00 EUR
AuM (fund)
121 M (EUR)
Regulatory authority
EU Regulation
Management company
Edmond de Rothschild Asset Management (Luxembourg)
Delegated Management Company
Edmond de Rothschild Asset Management (France)
Maximum management fee
0,900 %
Current management fee
0.900 %
Subscription and redemption conditions
Daily before 12.30 am C.E.T. on day's net asset value
Performance fee
15,000 %

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.