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EdR Fund Euro Credit Short Term Corporate bonds

Corporate bonds
Change in NAV (19/10/2017)
100.83 EUR
Raphaël  CHEMLA–LU1276000400–
Raphaël CHEMLA
Julie GUALINO-DALY–LU1276000400–
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
100.83 EUR
Change in NAV (19/10/2017)
2
1234567
Risk and reward profile
Between 12 and 24 months
Recommended holding period
Change in NAV (19/10/2017)
100.83 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 29/09/2017

September saw some weakness in high grade EUR denominated bonds. This was a function of rising yields in benchmark bonds, as the yield on the 10 year bund rose 10 bps, from 0.35 to 0.45 over the month. The ECB did not communicate on the future of the QE program during the September 7th meeting, but the market expects clarification at the late October meeting. Eurozone inflation numbers were slightly lower than expected in September, coming in at 1.5% for the CPI and 1.1% for the core. Confidence numbers were strong however. The climb in German yields was largely led by the worldwide rise in yields due to the somewhat hawkish Fed meeting, where the Fed reaffirmed its rate guidance for December and 2018 regardless of the low inflation numbers, as well as announced the beginning of the balance sheet normalization process. Details of the administration's tax plan also emerged, and investors raised their probabilities of a plan eventually becoming law. Euro investment grade spreads fell during the month, with all index sectors seeing at least some compression. This allowed the corporate investment grade market to outperform the sovereign benchmarks during a this relatively difficult month for high grade bonds. European High Yield continues its slow march tighter in September, after a small bout of widening in August. The macro picture has been supportive with strong economic backdrop (PMIs came in stronger than expected) and minor volatility from geopolitical risks, on top of the central-bank meetings. While the ECB kept the terms of its QE program unchanged, the Federal Reserve announced that it would start scaling back its balance sheet from October. European High Yield market delivered 0.5% total return in September. Top-performing sectors in September included Metals and Mining (1.22%) and Building Materials (0.99%), while the bottom-performing sectors were Aerospace/Defense (-0.42%) and Food and Beverage (-0.35%). Performance continues to be led by CCC bonds and longer dated maturities. XOver S27 index stands at 214bps (-20bps tightening over the month) while cash spreads tightened by 15 bps during the month to 270bps.It was a very busy month on the primary market. The month is closing at almost €8bn, the second-best month of the year. This pushed the total for the year to almost €51bn, much more than the €42.8bn we had last year at the same stage. In results, the tone is encouraging and confirming our supportive macro view. In the retail landscape, But's results (B2/B+) were in line while they were strong at Hema (B3/B-) which continued to recover and reported a 3.3% rise in sales. Hema has also confirmed that Lion Capital was considering selling its stake. CMA-CGM (B1/ B pos) posted a strong 57% increase in sales over a year and a 58% jump in core EBITDA compared to the first quarter. On the downside the Bombardier's (B2/B-) credit spread widened after the US Commerce Department imposed large duties on C series aircraft after Boeing complained of government subsidies. In M&A news, OHL (Caa1) is under pressure to reduce its heavy €2.9bn debt (compared to €1bn in market cap) and is reportedly to dispose of a 51% stake or be sold to China State Construction Engineering (CSCE), the largest construction company in China.

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Change in NAV

Chart – Base 100 (19/10/2017)
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 C-EUR Cumulative Annualised
Since 01/01/2017

0.80 %

0.63 %

0.80 %

0.63 %

1 Year

0.69 %

0.61 %

0.69 %

0.61 %

Since inception

0.83 %

0.71 %

0.76 %

0.65 %

Since 01/01/2017 1 Year 3 Year 5 year Since inception
Cumulative

Share class (C-EUR)

Benchmark

0.80 %

0.63 %

0.69 %

0.61 %

0.83 %

0.71 %

Annualised

Share class (C-EUR)

Benchmark

0.69 %

0.61 %

0.76 %

0.65 %

*Rolling periods

Annual performance



Statistics

VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
Share class C-EURBenchmarkShare class C-EURBenchmarkShare class C-EURBenchmarkShare class C-EURBenchmarkShare class C-EURBenchmark
1 Year*0.53 %0.53 %0.43 %0.68 %0.43 %1.64 %
3 Year *
Max. drawdownAlphaBeta
Share class C-EURBenchmarkShare class C-EURBenchmarkShare class C-EURBenchmark
1 Year*-0.45 %0.01 %0.68 %
3 Year *
Max. monthly gain Since inception
Max. monthly loss Since inception
Share class C-EUR
Benchmark
1 Year* 3 Year * 1 Year* 3 Year *
Volatility 0.53 % 0.53 %
Tracking Error 0.43 %
Sharpe ratio 1.64 %
Alpha 0.01 %
Correlation coefficient 0.68 %
Information ratio 0.43 %
Max. drawdown -0.45 %
Beta 0.68 %

Fund information

Inception Date (Fund)
07/01/1999
Inception Date (Part)
13/09/2016
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
1 Share
ISIN Code
LU1276000400
AuM (fund)
196 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
0,250 %
Current management fee
0.250 %
Subscription and redemption conditions
Daily before 12.30 am C.E.T. on day's net asset value
Subscription fee
1.00 % 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.

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