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EdR Millesima 2018 Corporate bonds

Corporate bonds
Change in NAV (26/05/2017)
118.07 EUR
Raphaël  CHEMLA–FR0011255181–
Raphaël CHEMLA
Julie GUALINO-DALY–FR0011255181–
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
118.07 EUR
Change in NAV (26/05/2017)
3
1234567
Risk and reward profile
until 31 October 2018
Recommended holding period
Change in NAV (26/05/2017)
118.07 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 28/04/2017

Leading credit indices ended April in positive territory. While the month began with reassuring words from the US Federal Reserve's Janet Yellen and the ECB's Mario Draghi, volatility gradually increased in the run-up to Round 1 of the French presidential elections. But then the market was reassured by the French voters' choice on April 23. Cyclical and banking stocks were among the major winners in the European market rally that followed. Economic momentum was positive in April with euro zone confidence indices on the rise and the IMF raising its global growth outlook to +3.5% for 2017. Investment grade corporate bonds in Europe held up very well during the month. Between the positive numbers on the economy, the ECB meeting (where no unconventional measures were envisaged for the time being), and, above all, the easing of political concerns, the environment was promising for investment grade credit in the euro zone. European spreads tightened by 9 bps over the month, outperforming investment grade credit in the United States. The best performers were peripheral corporate bonds and the energy sector. Performance was good in all segments of high yield debt, with the BB's up +1.0%, B's +0.8% and CCC's +1.6% over the month. On average, the high yield market gained +1.2%. The primary market has continued to find support in a climate where European issuers hope to take advantage of the very low level of core European rates. For example, look at Loxam (BB-) with three tranches for a €850 million in total, or Nomad Foods raising €500 million with a senior secured 7NC3 bond, Netflix (B1/B+) issued a senior unsecured bond of €1.3 billion or NCL and Atalian (B2/B+) with a €600 million issue. Investor appetite remains strong, the books were several times over-subscribed and coupons often came out in the low range of the initial announcement. Like the annual reports for FY 2016, the Q1 2017 earnings reports are generally good quality. Fiat Chrysler posted better-than-expected results with sales up +4% at €27.7 billion and Ebit +11% to €1.5 billion. Ardagh has come out in line with expectations, with sales and Ebitda growth at +51% and +38% respectively, thanks to its integration of the Ball/Rexam assets in June 2016. Leverage was modestly reduced at the end of March 2017 to 5.3x (vs 5.4x at end 2016). In the capital goods sector, Rexel (Ba2/BB) was driven by a positive momentum, both in Europe (+1.2%) and North America (+1.2%). In contrast, Cemex (BB-) posted relatively disappointing results, though the group has nevertheless continued to reduce its debt through a $2.5 billion asset disposal programme over 2016-2017. On the down side, note IKKS (B-) reporting poor Q4 results with sales falling -3.4% on a like-for-like basis and Ebitda plunging -31.2%, with its leverage rising to 6.6x.

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Change in NAV

Chart – Base 100 (26/05/2017)
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 E-EUR Cumulative Annualised
Since 01/01/2017 -0.19 % -0.19 %
1 Year 0.90 % 0.90 %
3 Year 3.53 % 1.16 %
Since inception 18.07 % 3.39 %
Since 01/01/2017 1 Year 3 Year 5 year Since inception
Cumulative

-0.19 %

0.90 %

3.53 %

18.07 %

Annualised

0.90 %

1.16 %

3.39 %



Statistics

VolatilityTracking ErrorCorrelation coefficientInformation ratioSharpe ratio
1 Year3 Year 1 Year3 Year 1 Year3 Year 1 Year3 Year 1 Year3 Year
Share class E-EUR0.72 %2.15 %0.80 %2.15 %0.15 %0.21 %1.69 %0.11 %0.05 %1.44 %
Benchmark0.47 %0.90 %
Max. monthly lossMax. monthly gainMax. drawdownAlphaBeta
Since inceptionSince inception1 Year3 Year 1 Year3 Year 1 Year3 Year
Share class E-EUR-2.19 %1.67 %-0.48 %-3.33 %0.02 %0.07 %0.24 %0.50 %
Benchmark
Share class E-EUR
Benchmark
1 Year 3 Year 1 Year 3 Year
Volatility 0.72 % 2.15 % 0.47 % 0.90 %
Tracking Error 0.80 % 2.15 %
Sharpe ratio 0.05 % 1.44 %
Alpha 0.02 % 0.07 %
Correlation coefficient 0.15 % 0.21 %
Information ratio 1.69 % 0.11 %
Max. monthly loss -2.19 %
Max. monthly gain 1.67 %
Max. drawdown -0.48 % -3.33 %
Beta 0.24 % 0.50 %

Fund information

Inception Date (Fund)
01/06/2012
Inception Date (Part)
04/06/2012
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
FR0011255181
AuM (fund)
45 M (EUR)
Regulatory authority
AMF
Management company
Edmond de Rothschild Asset Management (France)
Incorporation
France
Maximum management fee
1,250 %
Current management fee
1.250 %
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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