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EdR Fund Signatures Euro High Yield Corporate bonds

Corporate bonds
Change in NAV (21/06/2017)
117.72 EUR
Julie  GUALINO-DALY–LU1160363047–
Julie GUALINO-DALY
Alexis FORET–LU1160363047–
Alexis FORET
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
117.72 EUR
Change in NAV (21/06/2017)
3
1234567
Risk and reward profile
2 years
Recommended holding period
Change in NAV (21/06/2017)
117.72 EUR
Risk and reward profile
1234567
Recommended holding period
2 years
Julie GUALINO-DALY  
Alexis FORET  
The identity of the managers presented in this document may change during the life of the product.
Contact

Investment objective

The objective is to outperform its benchmark over the minimum recommended investment period. In order to achieve this objective, additional return will be sought for the bond portfolio through active management of interest rate risk and credit risk.

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Commentary 31/05/2017

One of the most problematic hurdles for the European bond market was crossed in May: political populism in France. The election of Emmanuel Macron as President of France, with 66.1% of votes, against 33.9% for the populist Marine le Pen, saw credit risk premiums returning to their lows: 65 bps and 250 bps respectively for the iTraxx Main and CrossOver indices. And for the time being, there is nothing to suggest they'll widen again in the short term. The euro zone's economic indicators are now in green territory, with good quarterly earnings reports and declining volatility. The technical parameters are strong enough to ignore other political risks, such as the possibility of a Trump impeachment, or Brazilian President Temer's shenanigans. It seems that only a radical change in the ECB's QE programme or a negative result to the Italian elections could unwind the current good weather in the universe of high yield credit. The market's various classes are continuing to perform well, if at a slower pace. The double-BB segment gained +0.8% (+1.1% in April), the single-B segment rose +1.2% (against +0.9% in April), and triple CCCs were up by +0.8% (vs +1.6% last month). On average, the high yield market gained +0.9% over the month. Primary issues amounted to €2.8bn in May. Major example included Rallye, with a €350 million Senior Unsecured dated 2023 to refinance its existing 2018 bond. Investor appetite was strong with subscriptions reaching €3 billion. There was also an issue launched by Iron Mountain (Ba3/BB), entering the market with a €300 million Senior Unsecured Note dated 2025 NC3. Corporate fundamentals continued to improve, too: Q1 earnings reports have mostly come out on the rise as debt and default rates continued to fall, boosting M&A transactions. Selecta reported sales up +3.1% to €180 million with Ebitda soaring +27.7%. The group still needs to complete its Pelican Rouge integration and demonstrate its ability to generate synergies. BUT delivered better-than-expected results with sales gaining +2.7% on a like-for-like basis and all segments up (white goods, brown goods, on-line sales). Ebitda rose by a modest +0.8%, a pleasant surprise given the promotions run, as well as the marketing and logistics effort made by the company up to the beginning of the year. Loxam also published excellent results thanks, in particular, to rebounding construction in France. Its sales climbed +11.8% in organic growth to €297 million, and Ebitda rose sharply by +27.5%. Given investments made to strengthen its fleet, Loxam's free cash-flow is likely to remain negative in the second quarter. Europcar reported sales up +3.2% to €439 million, driven by its three main divisions: Cars (+4.3%), InterRent (+49%), and Vans&Trucks (+4.5%). Ebitda stood at -€6.2 and free cash-flows were negative at -€27m, due mainly to its doubling non-fleet capex to €12 million. Europcar has also announced its acquisition of Buchbinder, the German leader in low-cost car and utility rentals, which generated sales of €200 million in 2016. This will put the new group into the No 1 slot in Germany.

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Change in NAV

Chart – Base 100 (21/06/2017)
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 B-EUR Cumulative Annualised
Since 01/01/2017

3.61 %

4.01 %

3.61 %

4.01 %

1 Year

7.83 %

9.31 %

7.83 %

9.31 %

3 Year

13.16 %

15.24 %

4.20 %

4.83 %

5 year

38.18 %

47.82 %

6.68 %

8.13 %

Since inception

37.20 %

47.20 %

6.37 %

7.84 %

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

Share class (B-EUR)

Benchmark

3.61 %

4.01 %

7.83 %

9.31 %

13.16 %

15.24 %

38.18 %

47.82 %

37.20 %

47.20 %

Annualised

Share class (B-EUR)

Benchmark

7.83 %

9.31 %

4.20 %

4.83 %

6.68 %

8.13 %

6.37 %

7.84 %

*Rolling periods

Annual performance



Statistics

VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
Share class B-EURBenchmarkShare class B-EURBenchmarkShare class B-EURBenchmarkShare class B-EURBenchmarkShare class B-EURBenchmark
1 Year*2.89 %3.05 %0.92 %0.95 %-1.79 %3.04 %
3 Year *4.60 %4.99 %1.22 %0.97 %-0.48 %1.04 %
Max. drawdownAlphaBeta
Share class B-EURBenchmarkShare class B-EURBenchmarkShare class B-EURBenchmark
1 Year*-2.36 %-0.01 %0.90 %
3 Year *-6.02 %0.89 %
Max. monthly gain Since inception6.28 %
Max. monthly loss Since inception-3.47 %
Share class B-EUR
Benchmark
1 Year* 3 Year * 1 Year* 3 Year *
Volatility 2.89 % 4.60 % 3.05 % 4.99 %
Tracking Error 0.92 % 1.22 %
Sharpe ratio 3.04 % 1.04 %
Alpha -0.01 %
Correlation coefficient 0.95 % 0.97 %
Information ratio -1.79 % -0.48 %
Max. monthly loss -3.47 %
Max. monthly gain 6.28 %
Max. drawdown -2.36 % -6.02 %
Beta 0.90 % 0.89 %

Fund information

Inception Date (Fund)
14/02/1997
Inception Date (Part)
09/05/2012
Legal form
SICAV
Benchmark
BofA ML BB-B Euro Non-Financial H-Y Constrained
Currency (fund)
EUR
Currency (share class)
EUR
Distribution Policy
Distribution
Valuation frequency
Daily
Minimum initial investment
1 Share
ISIN Code
LU1160363047
AuM (fund)
303 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
1,000 %
Current management fee
1.000 %
Subscription and redemption conditions
Daily before 12.30 am C.E.T. on day's net asset value
Subscription fee
3.00 % max

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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