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EdR Fund Emerging Bonds Emerging bonds

Emerging bonds
Change in NAV (26/04/2017)
140.08 USD
Jean-Jacques  DURAND–LU1160351620–
Jean-Jacques DURAND
Romain BORDENAVE–LU1160351620–
Romain BORDENAVE
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
> 3 years
140.08 USD
Change in NAV (26/04/2017)
5
1234567
Risk and reward profile
> 3 years
Recommended holding period
Change in NAV (26/04/2017)
140.08 USD
Risk and reward profile
1234567
Recommended holding period
> 3 years
Jean-Jacques DURAND  
Romain BORDENAVE  
The identity of the managers presented in this document may change during the life of the product.
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Investment objective

The objective is to outperform the benchmark, over using discretionary management on all bond markets from emerging countries.

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Commentary 31/03/2017

The month has been marked by a continuity of the trend established since the beginning of the year but as a trader said this month : “You have a lot of risk events, but the market is still remarkably relaxed and bullish. This shows you once again the power of technicals”. Still driven by flows, EM Debt markets fared well with hard currency debt up +0.19% (EMBI Global hedged in EUR) and local currency debt up +2.31% (GBI-EM index). With -0.46% our fund Edr Emerging Bonds underperformed mostly on some volatility in Venezuela at month end and the initiation of a new special situation strategy. The momentum is still there regarding inflows into EM debt (+$22.9bn in YtD) although they seem to be more dominated by retail money or cross over investors rather than dedicated EM investors. The later tend to view valuations as pricey and a record primary issuance YtD is starting to act as a headwind.On the currencies front the rebound of some majors like the Mexican peso or the Turkish lira has gained further strength. Regarding the peso, it benefited from Navarro and Ross constructive' s tones on Mexico and a better than expected economic picture. The rand in South Africa is the exception, victim of renewed political volatility after a sharp rally from its weakest point in 2016. On the bond side, we have been hurt by our Venezuela exposure. After the huge rebound of last year and during the first months of this year, political developments and a coming bond maturity in April have put pressure on the credit lately. However, we are still confident about the long term potential of Venezuela, with or without a debt restructuring on the way, given valuations and the still high willingness to pay. On the opposite, we strongly benefited from our Ukraine exposure thanks to a JP Morgan research paper about GDP warrants. These securities rebounded c. +25% since then. One new story on the special situations front has appeared in Croatia with the financial stress of the biggest retail and food conglomerate in the Balkans. It represents an interesting asymmetrical risk with a significant potential of rebound. Indeed, there is a huge incentive for the government and the parties involved to reach a constructive solution as the company represents around 15% of Croatia's GDP and 40 000 employees. Other specific opportunities might arise while we keep or could further reduce our cautious market exposure.

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Change in NAV

Chart – Base 100 (26/04/2017)
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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

Performance K-USD Cumulative performance Annualised performance
Since 01/01/2017 6.78 %  
1 Year 26.77 % 26.77 %
Since inception 40.08 % 13.66 %
Performance K-USD Since 01/01/2017 1 Year 3 Year 5 year Since inception
Cumulative performance 6.78 % 26.77 % 40.08 %
Annualised performance 26.77 % 13.66 %


Statistics

VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
1 Year1 Year1 Year1 Year1 Year
Share class K-USD10.03 %7.94 %0.61 %2.29 %1.40 %
Benchmark5.90 %
Max. monthly lossMax. monthly gainAlphaBeta
Since inceptionSince inception1 Year1 Year
Share class K-USD-8.50 %12.81 %0.30 %1.04 %
Benchmark
Share class K-USD
Benchmark
1 Year 3 Year 1 Year 3 Year
Volatility 10.03 % 5.90 %
Tracking Error 7.94 %
Sharpe ratio 1.40 %
Alpha 0.30 %
Correlation coefficient 0.61 %
Information ratio 2.29 %
Max. monthly loss -8.50 %
Max. monthly gain 12.81 %
Beta 1.04 %

Fund information

Inception Date (Fund)
29/04/1998
Inception Date (Part)
08/09/2014
Legal form
SICAV
Benchmark
JP Morgan EMBI Global (USD)
Currency (fund)
EUR
Currency (share class)
USD
Distribution Policy
Accumulation
Valuation frequency
Daily
Minimum initial investment
500000.00 USD EQ EUR
ISIN Code
LU1160351620
AuM (fund)
445 M (EUR)
Regulatory authority
CSSF
EU Regulation
UCITS
Management company
Edmond de Rothschild Asset Management (Luxembourg)
Delegated Management Company
Edmond de Rothschild Asset Management (France)
Incorporation
Luxembourg
Maximum management fee
0,700 %
Current management fee
0.700 %
Subscription and redemption conditions
Daily before 12.30 am C.E.T. on day's net asset value

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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