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EdR Fund Emerging Bonds Emerging bonds

Emerging bonds
Change in NAV (22/03/2017)
194.85 EUR
Jean-Jacques  DURAND–LU1160352354–
Jean-Jacques DURAND
Romain BORDENAVE–LU1160352354–
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
194.85 EUR
Change in NAV (22/03/2017)
Risk and reward profile
> 3 years
Recommended holding period
Change in NAV (22/03/2017)
194.85 EUR
Risk and reward profile
Recommended holding period
> 3 years
Jean-Jacques DURAND  
The identity of the managers presented in this document may change during the life of the product.

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 28/02/2017

Another boring and short month in February, with global volatility indicators (VIX being the reference) too low for comfort on an historical basis given the global geopolitical context. Driven by flows, EM Debt markets fared well with hard currency debt up +2% (EMBI Global hedged in EUR) and local currency debt up +1.80% (GBI-EM index). With +3.42% our fund EdR Emerging Bonds (I share) outperformed, mostly on a come-back by some of the most beaten down currencies like the Turkish lira and Mexican peso. In Mexico the central bank launched an active FX swap program to manage currency volatility without burning reserves. This gave further support to the peso rally as investors have been reassessing the reality of the Trump risk factor for Mexico.In hard currency sovereign debt, Iraq, Egypt, Zambia and Belize were among the top performers. Among Asian corporates, a possible investment in Noble by China owned Sinochem gave a further boost to the bonds which rose 10%. In the background, the deleveraging process is still ongoing at the company.Inflows into the asset class have kept their positive momentum reaching USD 10bn YTD, thus marking the second best start of the year since 2004. 2013 was the record, bringing back some painful memories… Talking about records we have seen the fastest ever period of EM new issuance for the first two months of the year. Investors are not as stretched in terms of market positioning as back in early 2013, however crossing that information with an active primary market issuance and rich valuations, we can say that EM hard currency debt is not so attractive as a whole. As a result, this benign environment has been more of an opportunity to increase some hedges at a reasonable level be it on the EM debt index or on China sovereign risk. As another hedge, we also bought a small amount of volatility exposure given the record low levels reached. We remain invested in our top sovereign credit convictions and a couple of local currency markets where we still see some potential left.

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Change in NAV

Chart – Base 100 (22/03/2017)
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 4.39 %  
1 Year 21.51 % 21.51 %
3 Year 45.39 % 13.26 %
5 year 77.13 % 12.11 %
Since inception 94.85 % 11.65 %
Performance I-EUR Since 01/01/2017 1 Year 3 Year 5 year Since inception
Cumulative performance 4.39 % 21.51 % 45.39 % 77.13 % 94.85 %
Annualised performance 21.51 % 13.26 % 12.11 % 11.65 %


VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
1 Year3 Year 1 Year3 Year 1 Year3 Year 1 Year3 Year 1 Year3 Year
Share class I-EUR9.83 %15.34 %7.62 %12.07 %0.63 %0.66 %2.67 %0.72 %1.54 %0.83 %
Benchmark6.02 %6.30 %
1 Year3 Year 1 Year3 Year
Share class I-EUR0.33 %0.48 %1.04 %1.61 %
Share class I-EUR
1 Year 3 Year 1 Year 3 Year
Volatility 9.83 % 15.34 % 6.02 % 6.30 %
Tracking Error 7.62 % 12.07 %
Sharpe ratio 1.54 % 0.83 %
Alpha 0.33 % 0.48 %
Correlation coefficient 0.63 % 0.66 %
Information ratio 2.67 % 0.72 %
Beta 1.04 % 1.61 %

Fund information

Inception Date (Fund)
Inception Date (Part)
Legal form
JP Morgan EMBI Global Hedged
Currency (fund)
Currency (share class)
Distribution Policy
Valuation frequency
Minimum initial investment
500000.00 EUR
AuM (fund)
424 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
0,450 %
Current management fee
0.450 %
Subscription and redemption conditions
Daily before 12.30 am C.E.T. on day's net asset value
Performance fee
10,000 %

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.