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EdR Fund Euro Credit Short Term Corporate bonds

Corporate bonds
NAV (23/02/2017)
11,418.52 EUR
Raphaël  CHEMLA–LU1082946630–
Raphaël CHEMLA
Julie GUALINO-DALY–LU1082946630–
Julie GUALINO-DALY
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
Between 12 and 24 months
11,418.52 EUR
NAV (23/02/2017)
2
1234567
Risk and reward profile
Between 12 and 24 months
Recommended holding period
NAV (23/02/2017)
11,418.52 EUR
Risk and reward profile
1234567
Recommended holding period
Between 12 and 24 months
Raphaël CHEMLA  
Julie GUALINO-DALY  
The identity of the managers presented in this document may change during the life of the product.
Contact

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 31/01/2017

The New Year opened under better auspices than 2016. Leading financial markets closed in neutral to positive territory, with the exception of European government bonds. Rising numbers on the PMI indices confirm the improvement in business and consumer confidence, serving to get cyclical stocks back into the headlines. On the corporate side, the quarterly reporting season is in full swing. It got off to a good start with positive growth in all regions and most companies publishing better-than-expected numbers. Investment grade spreads narrowed slightly during January, despite the rising sovereign yields, a widening core-periphery spread, and particularly high levels of primary issuance. The weakness of European sovereign bonds was very marked this month. The market was surprised by a number of euro zone economic indicators (notably inflation) which were greater than expected, and by uncertainties over the political future of Europe. The corporate investment grade market outperformed sovereign debt, but could nevertheless not help being pulled down by the general downtrend. Lower-rated credit outperformed, while financial bonds outperformed industrials. On the European credit market, too, 2017 started on a constructive note and performed well in January. Credit has been supported by strong technical factors, high subscription rates for mutual funds, and the resumption of ECB repurchasing at a sustained pace after the year-end slowdown, hitting a weekly average of €1.8 billion. In this environment, credit indices are trading at relatively tight levels, with the iTraxx Crossover at 300 bps, relatively unchanged over the month. The primary market for high yields was not as dynamic as expected, working partly to the benefit of the syndicated loan market. However, the so-called scarcity of new issues, a very significant additional technical factor, has served to sustain credit risk premiums on the secondary market. Among the headlines affecting the high yield market this month was Dieselgate. This is still a reality and now impacting Fiat Chrysler, accused by the US Environmental Protection Agency of concealing software leading to excessive emission of pollutants, as well as Renault, with the opening of a judicial investigation in France based on suspicions that it cheated on emissions, too. Meanwhile, the European Commission has approved the Areva rescue plan (with a €4.5 billion injection from the French state) under a number of conditions, and in particular that Areva's reactor business be sold off. M&A news has been plentiful: in addition to Essilor and Luxotica's merger between equals, Safran has announced its acquisition of Zodiac Aerospace. The stock market battle over Lavendon has finally come to an end, with Loxam set to buy Lavendon for nearly €720 million, as TVH bows out.

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Change in NAV

Chart – Base 100 (23/02/2017)
Avertissement
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 I-EUR Cumulative performance Annualised performance
Since 01/01/2017 0.19 %  
1 Year 3.14 % 3.13 %
3 Year 4.32 % 1.42 %
5 year 8.81 % 1.70 %
Since inception 14.19 % 1.85 %
Performance I-EUR Since 01/01/2017 1 Year 3 Year 5 year Since inception
Cumulative performance 0.19 % 3.14 % 4.32 % 8.81 % 14.19 %
Annualised performance 3.13 % 1.42 % 1.70 % 1.85 %


Statistics

VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
1 Year3 Year 1 Year3 Year 1 Year3 Year 1 Year3 Year 1 Year3 Year
Share class I-EUR1.24 %1.49 %0.89 %1.00 %0.79 %0.85 %1.68 %0.18 %3.86 %2.09 %
Benchmark0.51 %0.65 %
AlphaBeta
3 Year 1 Year3 Year
Share class I-EUR-0.08 %1.93 %1.94 %
Benchmark
Share class I-EUR
Benchmark
1 Year 3 Year 1 Year 3 Year
Volatility 1.24 % 1.49 % 0.51 % 0.65 %
Tracking Error 0.89 % 1.00 %
Sharpe ratio 3.86 % 2.09 %
Alpha -0.08 %
Correlation coefficient 0.79 % 0.85 %
Information ratio 1.68 % 0.18 %
Beta 1.93 % 1.94 %

Fund information

Inception Date (Fund)
07/01/1999
Inception Date (Part)
04/12/2009
Legal form
SICAV
Benchmark
BofA Merrill Lynch 1-3 Year Euro Corporate Non-Fin
Currency (fund)
EUR
Currency (share class)
EUR
Distribution Policy
Accumulation
Valuation frequency
Daily
Minimum initial investment
500000.00 EUR
ISIN Code
LU1082946630
AuM (fund)
220 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
0,150 %
Current management fee
0.150 %
Subscription and redemption conditions
Daily before 12.30 am C.E.T. on day's net asset value
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.

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