The UCITS aims to achieve a positive performance greater than the benchmark index, net of management fees, over the recommended investment period.
Emmanuel Macron's victory in the French presidential elections in May served to reassure investors that there could well be an end to the wave of populism in the euro zone, opening the way for a calmer period in politics. This resulted in the compression of market premiums on high yields and financial subordinates by around 10-20 bps. What's more, the euro zone is continuing to benefit from an upturn in business confidence and encouraging growth figures. Despite everything, long bonds have proved surprisingly stable with the German 10-year bund unchanged in May after fluctuating within a range of about 15 bps. This was partly due to a number of modest setbacks on the inflation front, coupled with statements by ECB members maintaining that the euro zone still needed an ultra-accommodative monetary policy as much as before. Turning to special situations, the positive performances posted by Portugal and Greece were due in the former's case to an improving economic and financial outlook and, in the latter's, to the significant likelihood of a debt relief pact being agreed. In this environment, where short term interest rates have mostly remained stable, EdR Intermediate Short Term cashed in its profits on investments at significantly negative rates, to reinvest while raising the stake on the fund's variable-rate securities segment.
Share class (G CHF H-CHF)
(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.