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EdR Fund Europe Convertibles Convertible bonds

Convertible bonds
NAV (23/02/2017)
90.88 USD
Laurent  LE GRIN–LU1103211980–
Laurent LE GRIN
Kris DEBLANDER–LU1103211980–
Kris DEBLANDER
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
> 2 years
90.88 USD
NAV (23/02/2017)
4
1234567
Risk and reward profile
> 2 years
Recommended holding period
NAV (23/02/2017)
90.88 USD
Risk and reward profile
1234567
Recommended holding period
> 2 years
Laurent LE GRIN  
Kris DEBLANDER  
The identity of the managers presented in this document may change during the life of the product.
Contact

Investment objective

The objective is to grow the value of its assets in the medium term (3 to 5 years). The assets of the Sub-Fund are predominantly, but not exclusively, invested in convertible or exchangeable bonds with underlying assets in the eurozone. The Sub-Fund seeks to optimise the risk/return ratio over the specified period by diversifying its sources of return – underlying assets, sector, coupon, issuer, interest rate and currency – based on a systematic analysis of the various exposures.

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Commentary 31/01/2017

The January effect was short lived. Investors bought stocks following Trump's election, betting on more aggressive US reflation economic policy, but sold the market beyond the inauguration day as the new President's immigration ban damaged sentiment. Nonetheless, estimates for earnings growth remain favourable, with +20% expected for the UK and +12% for the Eurozone and the US in 2017. Ageas Fresh contributed positively to performance. The Belgian insurer will report mid-February and we expect a nice set of results. The more positive interest rate context should also help to raise more premiums. Ageas could also take part in M&A activities and BNP could exercise its right to sell 25% of AG Insurance back. Within the insurance sector our positioning in Generali through call options delivered a strong performance. The portfolio also benefited from IAG and Kering. We believe IAG is still undervalued. The reduction of the group's pension deficit as interest rates rise is one positive factor to expect. Both STM 2019 and 2021 rose strongly after results given higher operating margins and a big contract announced with Apple. During the month we restruck our call options on Generali, Allianz, Evonik and Ageas. We sold our holdings in the convertible bonds of Brait and Grandcity. We took profits on our call options on Deutsche Post and Credit Agricole as we do not see further significant upside. We cut our holding in Inmarsat as we feel the newsflow around competitive pressure could become more negative for the credit. We added Sacyr 2019 for which we think Repsol share performance will improve the credit metrics. We participated in the new plain-vanilla convertible bond issue from Prysmian for which the credit profile is healthy and potential for margin upside could awaken the equity valuation. However, we avoided the non-dilutive Michelin 2022 as the underlying valuation is too rich in our view. We did the same for the new Immofinanz as we are not confident enough in the creditworthiness of the company. We end the month with portfolio equity sensitivity around 35%. We continue to hold protection through put options on the Euro Stoxx 50 maturing in March with a strike of 3,200.

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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 R-USD Cumulative performance Annualised performance
Since 01/01/2017 1.12 %  
1 Year 1.90 % 1.89 %
3 Year -20.31 % -7.27 %
5 year 1.03 % 0.20 %
Since inception -9.12 % -1.69 %
Performance R-USD Since 01/01/2017 1 Year 3 Year 5 year Since inception
Cumulative performance 1.12 % 1.90 % -20.31 % 1.03 % -9.12 %
Annualised performance 1.89 % -7.27 % 0.20 % -1.69 %


Statistics

VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
1 Year3 Year 1 Year3 Year 1 Year3 Year 1 Year3 Year 1 Year3 Year
Share class R-USD9.19 %9.69 %3.14 %2.47 %0.94 %0.97 %0.02 %-0.59 %0.16 %-0.46 %
Benchmark8.73 %10.14 %
AlphaBeta
3 Year 1 Year3 Year
Share class R-USD-0.16 %0.99 %0.93 %
Benchmark
Share class R-USD
Benchmark
1 Year 3 Year 1 Year 3 Year
Volatility 9.19 % 9.69 % 8.73 % 10.14 %
Tracking Error 3.14 % 2.47 %
Sharpe ratio 0.16 % -0.46 %
Alpha -0.16 %
Correlation coefficient 0.94 % 0.97 %
Information ratio 0.02 % -0.59 %
Beta 0.99 % 0.93 %

Fund information

Inception Date (Fund)
13/12/1993
Inception Date (Part)
15/07/2011
Legal form
SICAV
Benchmark
Exane Euro Convertibles Index
Currency (fund)
EUR
Currency (share class)
USD
Distribution Policy
Accumulation
Valuation frequency
Daily
Minimum initial investment
1 Share
ISIN Code
LU1103211980
AuM (fund)
715 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
1,300 %
Current management fee
1.300 %
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
15,000 %

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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