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EdR Millesima 2018 Corporate bonds

Corporate bonds
Change in NAV (21/07/2017)
1,197.23 EUR
Raphaël  CHEMLA–FR0011252360–
Raphaël CHEMLA
Julie GUALINO-DALY–FR0011252360–
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
until 31 October 2018
1,197.23 EUR
Change in NAV (21/07/2017)
3
1234567
Risk and reward profile
until 31 October 2018
Recommended holding period
Change in NAV (21/07/2017)
1,197.23 EUR
Risk and reward profile
1234567
Recommended holding period
until 31 October 2018
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 objective of the mutual fund over the recommended investment period is to annually outperform an OAT maturing October 2018 by investing in bonds, primarily those issued in euros, from industrial and financial companies. The fund has instituted an October 31, 2018 maturity buy-and-hold strategy.

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Commentary 30/06/2017

While the European business climate has reached record levels last seen in 2011, with a marked increase in the most cyclical sectors (building and retail trade), June's close saw a change of tone at the ECB. Interest rates, particularly in the euro zone, were noticeably impacted in Germany and France, following a speech by ECB chief Mario Draghi, who suggested that the ECB should now consider a gradual wind-down to QE. Given this climate, European high yields performed reasonably well. The fund was up +0.3% in June, driven by the single-B compartment (up +0.5%), while the double-BB compartment rose +0.2%. Long bonds with a limited cushion spread suffered most from the hike in European core rates. The primary market's momentum continued. There were no less than €12.5 billion new issues in June, the largest monthly issue since April 2017 and September 2016. One of the largest was for Intrum-Justitia, a Scandinavian credit services player, with various tranches totalling €3 billion. However, note that Manutencoop experienced some difficulties in issuing a 5-year bond to refinance existing debt. Several inaugural issuers presented themselves to investors, including the French video production company Banijay, the Italian rail operator Italo, and two US automotive suppliers, Superior Industries and Federal Mogul. The automotive sector was shaken this month in the wake of Schaeffler's profits warning and poor new car sales numbers from the United States. But we must stress that in Europe the M&A theme remained robust with, for example, Europcar's acquisition of Goldcar (well positioned in Spain and Portugal), thus becoming a major player in the low-cost auto-rental segment in Europe. The euro zone posted positive macroeconomic numbers in June, with PMIs reaching their highest levels since 2011. European growth has been sustained, led by Germany and France. The ECB has not changed its monetary policy for the meantime, but there has been a change in tone. Communication regarding the sustainability of growth, as well as the future direction of interest rates has become more hawkish. ECB chief Mario Draghi said that deflationary forces were being replaced by inflationary forces. The US Federal Reserve also had a slightly more hawkish FOMC meeting than expected, with, in addition to a rate hike, the announcement of a roadmap to start reducing its balance sheet. Between a better-performing economy and central banks that indicate a less accommodating monetary future, European sovereign bonds (especially core bonds) were weak during June. The yield on the 10-year and 5-year German bund rose from 0.30% to 0.46% and -0.43% to -0.23%, respectively. Investment grade corporate spreads tightened again over the month, partially offsetting the impact of weak benchmarks. This compression was widespread, with all sectors of the iTraxx Eur IG seeing their spreads narrowing. The credit market was relieved by the resolution of the bank crisis in Italy and Spain. Spreads on investment grade paper in the euro zone have now reached their lowest level in several years.

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Change in NAV

Chart – Base 100 (21/07/2017)
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

-0.08 %

-0.69 %

-0.08 %

-0.69 %

1 Year

0.53 %

-0.60 %

0.53 %

-0.60 %

3 Year

3.85 %

1.71 %

1.27 %

0.57 %

5 year

18.97 %

8.16 %

3.53 %

1.58 %

Since inception

19.72 %

10.08 %

3.56 %

1.89 %

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

Share class (C-EUR)

Benchmark

-0.08 %

-0.69 %

0.53 %

-0.60 %

3.85 %

1.71 %

18.97 %

8.16 %

19.72 %

10.08 %

Annualised

Share class (C-EUR)

Benchmark

0.53 %

-0.60 %

1.27 %

0.57 %

3.53 %

1.58 %

3.56 %

1.89 %

*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*0.60 %0.43 %0.69 %0.16 %2.43 %-0.82 %
3 Year *2.12 %0.77 %2.15 %0.14 %0.25 %1.12 %
Max. drawdownAlphaBeta
Share class C-EURBenchmarkShare class C-EURBenchmarkShare class C-EURBenchmark
1 Year*-0.39 %0.02 %0.22 %
3 Year *-3.14 %0.08 %0.40 %
Max. monthly gain Since inception1.70 %
Max. monthly loss Since inception-2.17 %
Share class C-EUR
Benchmark
1 Year* 3 Year * 1 Year* 3 Year *
Volatility 0.60 % 2.12 % 0.43 % 0.77 %
Tracking Error 0.69 % 2.15 %
Sharpe ratio -0.82 % 1.12 %
Alpha 0.02 % 0.08 %
Correlation coefficient 0.16 % 0.14 %
Information ratio 2.43 % 0.25 %
Max. monthly loss -2.17 %
Max. monthly gain 1.70 %
Max. drawdown -0.39 % -3.14 %
Beta 0.22 % 0.40 %

Fund information

Inception Date (Fund)
01/06/2012
Inception Date (Part)
01/06/2012
Legal form
Mutual Fund
Benchmark
OAT octobre 2018
Currency (fund)
EUR
Currency (share class)
EUR
Distribution Policy
Accumulation
Valuation frequency
Daily
Minimum initial investment
1 Share
ISIN Code
FR0011252360
AuM (fund)
39 M (EUR)
Regulatory authority
AMF
Management company
Edmond de Rothschild Asset Management (France)
Incorporation
France
Maximum management fee
0,950 %
Current management fee
0.950 %
Subscription and redemption conditions
Daily before 11.00 am C.E.T. on day's net asset value
Subscription fee
4.00 % 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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