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EdR Fund Euro Credit Short Term Corporate bonds

Corporate bonds
Change in NAV (22/03/2017)
148.43 EUR
Raphaël  CHEMLA–LU1082946473–
Raphaël CHEMLA
Julie GUALINO-DALY–LU1082946473–
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
Between 12 and 24 months
148.43 EUR
Change in NAV (22/03/2017)
Risk and reward profile
Between 12 and 24 months
Recommended holding period
Change in NAV (22/03/2017)
148.43 EUR
Risk and reward profile
Recommended holding period
Between 12 and 24 months
Raphaël CHEMLA  
The identity of the managers presented in this document may change during the life of the product.

Investment objective

The Sub-Fund's investment objective is to outperform its benchmark, net of management fees, over an investment horizon of one to two years, through a portfolio representing investment opportunities present on the short-term corporate credit markets.

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Commentary 28/02/2017

In February, markets were caught between two opposing forces, increased political risk on one hand, and the publication of promising fundamentals and macroeconomic data on the other. While investors worried about President Trump's campaign promises, the S&P 500 and Dow Jones continued their climb to historic highs, as Fed chair Janet Yellen said the US economy could maintain the upward cycle. In Europe, concerns have grown over the possibility of far-right victories in the upcoming elections in France and the Netherlands. Meanwhile, we have continued to see very promising advanced indicators (US consumer confidence, plus Ifo business confidence in the euro zone). Robust technical factors are continuing to support the credit market, particularly the high yield segment. Since the beginning of the year, performance has been highly positive, with a gain of +1.9% for the BB segment and 1.6% for the B- segment, while the iTraxx Crossover index reached 291 bps by February's end (-9 bps over the month) . Annual reports show improved credit ratios, with lower default rates and leverage levels. The Fnac-Darty group reported better-than-expected earnings and the synergies initially hoped for by end 2019 were brought forward to 2018. There were more mixed results from BUT (furniture), which saw a dip in its margins and free cash-flow, while Vallourec (steel tubing) saw sales falling -22%, with 2016 Ebitda down to -€220 million. In the wake of these results, S&P decided to downgrade Vallourec from B+ to B. On the M&A scene, we note that Opel, the European branch of General Motors, has been bought by Peugeot's holding company PSA (rated Ba2) for €2.2 billion. The new group will become the second largest car maker in Europe, with a 17% market share. This acquisition should enable PSA to achieve significant economies of scale. Meanwhile, primary issues have mainly been driven by refinancing transactions. Volumes in January and February 2017, respectively €6 billion and €7.7 billion, far exceed 2016 levels. Two new issues in euros have replaced existing dollar tranches: Levi Strauss (Ba2/BB+), which issued a tranche of €450 million 10-year NC5 bonds to replace the USD 6.875% 2022 and also Rexel (Ba2/BB), which has issued a senior unsecured series for €300 million at 2.625% NC3 to refinance its existing USD 5.25% 2020. Two major new issues were the Quintiles IMS Inc (Ba2/BBB-) senior notes at €1,425 million 3.25% 2025 and Thyssenkrupp AG (Ba2/BB) at €1,250 million 1.375% 2022. The spreads on investment grade corporate credit tightened considerably in February (by around 6 bps). Despite this, Europe's credit market underperformed its US counterpart in February, to the extent that for the first time since the European sovereign debt crisis, corporate spreads are higher in Europe than in the United States. And this, despite the ECB continuing its corporate bond repurchasing programme. This underperformance is partly due to rising political risk, and particularly concerns about the outcome of the upcoming Dutch and French elections. In this climate of increasing risk aversion, German 10-year bund yields fell sharply over the month from almost 0.5% to 0.21%.

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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 A-EUR Cumulative performance Annualised performance
Since 01/01/2017 -0.02 %  
1 Year 1.26 % 1.26 %
3 Year 3.47 % 1.14 %
5 year 6.96 % 1.35 %
Since inception 48.42 % 2.19 %
Performance A-EUR Since 01/01/2017 1 Year 3 Year 5 year Since inception
Cumulative performance -0.02 % 1.26 % 3.47 % 6.96 % 48.42 %
Annualised performance 1.26 % 1.14 % 1.35 % 2.19 %


VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
1 Year3 Year 1 Year3 Year 1 Year3 Year 1 Year3 Year 1 Year3 Year
Share class A-EUR0.96 %1.49 %0.72 %1.00 %0.68 %0.84 %1.08 %-0.17 %3.86 %2.24 %
Benchmark0.49 %0.66 %
3 Year 1 Year3 Year
Share class A-EUR-0.11 %1.35 %1.90 %
Share class A-EUR
1 Year 3 Year 1 Year 3 Year
Volatility 0.96 % 1.49 % 0.49 % 0.66 %
Tracking Error 0.72 % 1.00 %
Sharpe ratio 3.86 % 2.24 %
Alpha -0.11 %
Correlation coefficient 0.68 % 0.84 %
Information ratio 1.08 % -0.17 %
Beta 1.35 % 1.90 %

Fund information

Inception Date (Fund)
Inception Date (Part)
Legal form
BofA Merrill Lynch 1-3 Year Euro Corporate Non-Fin
Currency (fund)
Currency (share class)
Distribution Policy
Valuation frequency
Minimum initial investment
1 Share
AuM (fund)
221 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
0,400 %
Current management fee
0.400 %
Subscription and redemption conditions
Daily before 12.30 am C.E.T. on day's net asset value
Subscription fee
3.00 % 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.