Edmond de Rothschild SICAV Corporate Hybrid Bonds.

Seeking a high yield return profile for investment grade default risk.

EdRS Corporate Hybrid Bonds

Our
conviction

We believe Corporate Hybrid Debt is a fast growing asset class, presenting a compelling investment proposition with historically low default risk¹ and average yields above those of traditional bonds.

Key
points

An actively managed portfolio of global hybrid debt securities

Fund inception: 09/12/2021

2 seasoned fund manager/analysts with +18 years' average experience

3 years minimum investment horizon

Carries a risk of capital loss and credit risk

SFDR² classification Article 8

Why
invest?

An increasingly diversified asset class

As the investment universe grows into the mainstream, new issuers expand the geographical and sectoral opportunity.

An attractive risk/return profile

Issuer profiles are often high quality companies (Investment Grade³ default risk) yet may possess a similar historical return profile to High Yield⁴ corporates.

Compelling investment attributes

A duration that is typically lower than investment grade indices, given high issuer incentives to call bonds, and on average higher yields.

Fund
presentation

Edmond De Rothschild Sicav Corporate Hybrid Bonds takes a conviction-based, discretionary approach, investing in bonds, including 50% to 100% of the net assets in hybrid bonds issued by non-financial companies. In order to achieve its investment objective, the investment team takes tactical positions in financial debt, up to 15% if relative value assessment favour financials, and up to 10% in speculative-grade issuers.

The team believes in a quantamental⁵ approach to guide macro positioning and generate bond ideas. Proprietary quantitative screening tools rank issues from best to worst based on Relative Value proprietary scoring for Hybrids and subordinated debt⁶ instruments.

Hybrid corporate bonds, issued mainly by non-financial companies rated "Investment Grade" at the time of issuance, are a fast-growing asset class. These are debts, above equity in the capital structure, with cumulative coupons if not paid. Despite their very long final maturity, these bonds have a call feature, although the decision to call is at the discretion of the issuer. The asset class continues to grow and develop, currently boasting a market capitalization around 200 billion euros (as of end 2023), and is now as large as the Euro BB high-yield corporate space.

Main
investment risks

Risk Indicator

The risk indicator rates this fund on a scale of 1 to 7. This indicator is used to assess the level of risk of this product in comparison to other funds and a category 1 rating does not mean that the investment is risk free. In addition, it indicates the likelihood that this product will incur losses in the event of market movements or our inability to pay you.

This indicator assumes that you hold the product until the end of the recommended holding period of this fund. The actual risk may be very different if you choose to exit before the end of the recommended holding period of this Fund.

The risks described below are not exhaustive.

Risk of capital loss: The UCITS does not guarantee or protect the capital invested; investors may therefore not get back the full amount of their initial capital invested even if they hold their units for the recom-mended investment period.

Credit risk: The main risk is that of the issuer defaulting on payment, failing to pay the interest and/or repay the capital. Credit risk also relates to the downgra-ding of an issuer. Investors’ attention is drawn to the fact that the Fund’s net asset value may drop in the event of a total loss being recorded on an operation following a counterparty default. The presence of corporate bonds in the portfolio – either directly or through UCITS – exposes the Fund to the effects of changes in credit quality.

Hybrid and Subordinated Securities Risk: The Fund may be exposed to hybrid or subordinated debt. Hy-brid or subordinated debt is subject to specific risks of non-payment of coupons and loss of capital under certain circumstances. For non-financial bonds, hy-brid debt is deeply subordinated debt, which implies a low recovery rate in case of default of the issuer.

Risks related to contingent convertible bonds (Co-cos): Cocos are subordinated debt securities issued by credit institutions or insurance or reinsurance companies, eligible in their regulatory capital and which have the specificity of being convertible into shares, or whose nominal value can be reduced (a so-called “write down” mechanism) in the event of the occurrence of a “trigger”, previously defined in the prospectus. A Coco includes an option to convert into shares at the issuer’s initiative in the event of a deterioration of its financial situation. In addition to the credit and interest rate risk inherent in the bonds, the activation of the conversion option may result in a decrease in the value of the Coco above that of the issuer’s other conventional bonds. Depending on the terms of the relevant Coco, certain triggering events may result in a permanent write-down to zero of the principal investment and/or accrued interest or a conversion of the bond into equity.

1. Historical default risk data as at January 2021. Source: S&P Global Ratings Research and S&P Global Market Intelligence’s Credit Pro.
2. The investment policy of a fund may change over time and therefore its classification under the Sustainable Finance Disclosure Regulation (SFDR) may change. If you have any doubts about the SFDR classification of a fund, please contact your usual adviser. Article 8: Funds promoting environmental and social characteristics. The investment policy of a fund may change over time and therefore its SFDR classification may also change.
3. Investment Grade: Investable securities corresponding to bonds issued by borrowers rated between AAA and BBB- by Standard & Poor’s.
4. High Yield: Speculative issues with a Standard & Poor’s or equivalent long-term rating below BBB-, or with an equivalent internal rating of the management company.
5. Quantamental - an approach which is part Quantitative and part Fundamental.
6. Subordinated debt: Subordinated debt has the particular characteristic of being repaid after the other creditors of this debt have been repaid. Subordinated debt is a financial instrument with a high level of risk.

For Swiss Investors: This marketing material is issued by Edmond de Rothschild (Suisse) S.A. located at 18 rue de Hesse, 1204 Geneva, Switzerland, a Swiss bank authorised and regulated by the Swiss Financial Market Supervisory Authority (FINMA). The “Edmond de Rothschild SICAV” funds mentioned in this material are organized under the laws of France and have been approved by the AMF to be offered in Switzerland to non-qualified investors by the FINMA.

This document is issued by Edmond de Rothschild Asset Management (France). Non-contractual document designed for information purposes only. Reproduction or use of its contents is strictly prohibited without the permission of the Edmond de Rothschild Group. The information contained in this document does not constitute an offer or solicitation to trade in any jurisdiction in which such offer or solicitation is unlawful or in which the person making such offer or solicitation is not qualified to act. This document does not constitute and should not be construed as investment, tax or legal advice, nor as a recommendation to buy, sell or continue to hold any investment. The Edmond de Rothschild Group shall not be held liable for any investment or divestment decision taken on the basis of the information contained in this document. The funds presented may not be registered and/or authorized for sale in your country of residence. If you have any doubts about your ability to subscribe to this fund, please contact your professional advisor. The figures, comments, forward looking statements and other information contained in this presentation reflect the Edmond de Rothschild Group’s view of the markets, their development and their regulations, taking into account its expertise, the economic context and the information available to date. They may no longer be relevant on the day the investor reads them. Consequently, the Edmond de Rothschild Group shall not be held responsible for the quality or accuracy of economic information and data obtained from third parties.

Any investment involves specific risks. Investors are therefore advised to ensure that any investment is suitable for their personal circumstances by seeking independent advice where appropriate. In addition, investors should read the Key Information Documents (KID) and/or any other document required by local regulations, which is provided prior to any subscription and is available in French and in English on the website under the “Fund Center” tab or free of charge on request. A summary of investors’ rights in French and English can be obtained at the following link.
Edmond de Rothschild Asset Management (France) may decide to cease marketing this Fund in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU.

“Edmond de Rothschild Asset Management” or “EdRAM” is the trade name of the asset management entities of the Edmond de Rothschild Group. Source of information: un-less otherwise indicated, the sources used in this document are those of the Edmond de Rothschild Group. Copyright Edmond de Rothschild. All rights reserved.

EdR SICAV Corporate Hybrid Bonds is registered at the CNMV under n.o 1801

GLOBAL DISTRIBUTOR AND INVESTMENT MANAGER:
Edmond de Rothschild Asset Management (France)
47 rue du Faubourg Saint-Honoré / FR - 75401 Paris Cedex 08
Public limited company with Management Borad and Supervisory Board and a capital of 11,033,769 euros
AMF approval number GP 04000015 332.652.536 R.C.S. Paris

INVESTMENT ADVISOR AND REPRESENTATIVE AND PAYING AGENT IN SWITZERLAND
EDMOND DE ROTHSCHILD (SUISSE) S.A.
Rue de Hesse 18 / CH - 1204 Geneva

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Edmond de Rothschild Asset Management (France) may receive commission rebates from entities of the Edmond de Rothschild Group in its capacity as the global distributor of investment funds. These rebates compensate Edmond de Rothschild Asset Management (France) for selecting and distributing the funds and represent part of the commissions stipulated in the fund’s prospectus (up to 50% of these commissions).

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All data and documents have been obtained from sources deemed reliable. However, the accuracy of this data and documents is not guaranteed. The data, comments, and analyses provided on this website reflect the opinion of the Edmond de Rothschild Group and its affiliated entities on markets, their developments, their regulation, and their taxation. This opinion is based on their expertise, economic analyses, and the information available to them at present. These data, comments, and analyses are subject to change without notice. The information provided on this website does not constitute any commitment or guarantee from the Edmond de Rothschild Group and its affiliated entities.

Risk Information
"Any investment carries specific risks. Potential investors should first consult their provider or advisor to form their own opinion on the risks inherent to each investment independently of the Edmond de Rothschild Group and its affiliated entities, in order to determine whether this investment is suitable for their financial and personal situation. Before making any investment decision, investors must review the relevant contractual documents, particularly the investment policies and risk factors. They must ensure they fully understand the risks associated with the investment and should also consider their own investment objectives and risk tolerance.
Risk of capital loss: There is a risk that investors may not recover the full amount invested.

Investment performance information
Past performance and volatility are not indicative of future performance and volatility and are not constant over time and may be independently affected by exchange rate fluctuations.
The indicated performances do not take into account costs and fees incurred during the issuance and redemption of shares but include ongoing fees, brokerage fees, and any performance fees charged. They also do not take into account any taxes imposed by the investor's country of residence.
The reference to a ranking or an award does not imply future rankings or awards for the financial instruments or the manager. If the figures expressed on this site are in a currency different from the country in which the investor resides, the gains received by the client may be increased or reduced depending on currency exchange fluctuations.

Legal Notices/Roles and Responsibilities
Edmond de Rothschild Asset Management (France) is a public limited company with an executive board and supervisory board, with a share capital of €11,033,769, headquartered at 47 rue du Faubourg Saint-Honoré, 75008 Paris, France. The company is registered with the Paris Trade and Companies Register under number 332 652 536 as a portfolio management company authorized by the Autorité des Marchés Financiers under number GP-04000015. Telephone: +33 1 40 17 25 25.
The publication director is Mr. Christophe Caspar, in his capacity as Head of the Group's Asset Management. The editor responsible for the Asset Management section of this website is Mr. Bruno Major, Marketing Director.
The website is hosted by Umbraco Cloud via Microsoft Azure, with the data center located in the Netherlands.
"Edmond de Rothschild Asset Management" or "EdRAM" is the trade name of the asset management entities (including subsidiaries and affiliated entities) of the Edmond de Rothschild Group. This name also refers to the Asset Management division of the Edmond de Rothschild Group.

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Important Information

Access to the Website
This section of the website is intended for non-professional investors, as opposed to professional investors as defined by Directive 2014/65/EU, known as the "MiFID Directive."
The content of this website has no contractual value and is designed exclusively for informational purposes.
This website is not intended for individuals in jurisdictions where the publication of or access to the website is prohibited due to their nationality or place of residence. Individuals affected by such prohibitions must not access this website. Individuals accessing the website acknowledge that they are solely responsible for complying with the laws and regulations applicable in their country of residence and/or nationality. In case of doubt, they should seek advice from their tax advisor, lawyer, and/or independent financial advisor.

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The information on this website should not be considered as an offer or solicitation to engage in a transaction in a jurisdiction where such an offer or solicitation would be illegal or where the person making such an offer or solicitation is not authorized to act. The information on this website is provided solely for informational purposes and does not constitute active advertising/marketing, a personal recommendation, or investment advice. This information is not exhaustive, may change over time, and may be updated by the Edmond de Rothschild Group without notice and at any time.
This website is not intended for citizens or residents of the United States of America or for "U.S. Persons" as defined by Regulation S of the U.S. Securities Act of 1933. No investment product presented here is authorized for sale under the U.S. Securities Act of 1933 or any other regulations applicable in the United States. Therefore, no investment product may be offered or sold directly or indirectly in the United States of America to U.S. residents, U.S. citizens, or "U.S. Persons."
Regulations in each country regarding the marketing of a financial instrument vary depending on the country and your status (particularly as a non-professional client or equivalent). If you have any doubts about the marketing capability of this investment fund, we invite you to contact your usual advisor. No investment fund may be offered to a person if the law of their country of origin or any other relevant country prohibits it. The content of the website has not been reviewed or approved by any regulator of any jurisdiction.
You are solely responsible for selecting your country of nationality or residence and choosing the website for your country. You declare that this choice complies with all laws and regulations applicable to your country of nationality or residence; otherwise, this choice is made under your sole responsibility.

Regulatory Information
The prospectuses and KIDs (key information documents) approved and/or referenced by the regulator of the relevant country for the presented investment funds are freely accessible on the website. Other regulatory documents are available from the product’s management company. Any subscription to an investment fund or product should be made only after reviewing the relevant regulatory documents.
Edmond de Rothschild Asset Management (France) may receive commission rebates from entities of the Edmond de Rothschild Group in its capacity as the global distributor of investment funds. These rebates compensate Edmond de Rothschild Asset Management (France) for selecting and distributing the funds and represent part of the commissions specified in the fund’s prospectus (up to 50% of these commissions).

Absence of Insurance or Guarantee
All data and documents have been obtained from sources deemed reliable. However, the accuracy of this data and documents is not guaranteed. The data, comments, and analyses provided on this website reflect the opinion of the Edmond de Rothschild Group and its affiliated entities on markets, their development, regulation, and taxation. This opinion is based on their expertise, economic analyses, and the information available to them as of today. These data, comments, and analyses are subject to change without notice. The information provided on this website does not constitute any commitment or guarantee from the Edmond de Rothschild Group and its affiliated entities.

Risk Information
"All investments involve specific risks. Any potential investor should first consult their provider or advisor to form their own opinion on the risks inherent in each investment independently of the Edmond de Rothschild Group and its affiliated entities in order to determine whether this investment is suitable for their financial and personal situation. Before making any investment decision, investors must review the relevant contractual documents, particularly the investment policies and risk factors. They must ensure that they fully understand the risks associated with the investment and also consider their own investment objectives and level of risk tolerance.
Risk of capital loss: There is a risk that investors may not recover the full amount invested.

Investment Performance Information
Past performance and volatility do not predict future performance and volatility, and they are not constant over time and may be independently affected by exchange rate fluctuations.
The indicated performances do not account for costs and fees incurred during the issuance and redemption of shares but include ongoing fees, brokerage fees, and any performance fees charged. They also do not account for taxes imposed by the investor's country of residence.

The reference to a ranking or award does not imply future rankings or awards for the financial instruments or the manager. If the figures expressed on this website are in a currency different from the investor's country of residence, the gains received by the client may increase or decrease depending on currency exchange rate fluctuations.

Legal Notices/Roles and Responsibilities
Edmond de Rothschild Asset Management (France) is a public limited company with an executive board and supervisory board, with a share capital of €11,033,769, headquartered at 47 rue du Faubourg Saint-Honoré, 75008 Paris, France. The company is registered with the Paris Trade and Companies Register under number 332 652 536 as a portfolio management company authorized by the Autorité des Marchés Financiers under number GP-04000015. Telephone: +33 1 40 17 25 25.
The publication director is Mr. Christophe Caspar, in his capacity as Head of the Group's Asset Management. The editor responsible for the Asset Management section of this website is Mr. Bruno Major, Marketing Director.
The website is hosted by Umbraco Cloud via Microsoft Azure, with the data center located in the Netherlands.
"Edmond de Rothschild Asset Management" or "EdRAM" is the trade name for the asset management entities (including subsidiaries and affiliated entities) of the Edmond de Rothschild Group. This name also refers to the Asset Management division of the Edmond de Rothschild Group.

Personal Data Protection and Cookies
Consult the personal data protection charter.
Consult the cookie policy.

The personal data collected from the website will be subject to automated processing by Edmond de Rothschild Asset Management (France), the data controller, whose contact details are Client Service - 47 rue du Faubourg Saint-Honoré, 75008 Paris, "clientservice-am-fr@edr.com." The contact details of the Data Protection Officer are: DPO Edmond de Rothschild (France), 47 rue du Faubourg Saint-Honoré, 75008 Paris, "DPO@edr.com."
This processing is intended to adapt the website content according to local business rules and to compile anonymized statistics. The personal data collected in this context is mandatory as it allows access to the website and content tailored to the profile of visitors. For more information on the processing of your data, please refer to our Personal Data Protection Charter and Cookie Policy.

Copyright
Edmond de Rothschild Group. Any total or partial reproduction of the content of these pages is prohibited, subject to the restrictions outlined below. The pages of the website may be downloaded to disk or printed for personal use, provided that this notice is copied on each copy, no modifications are made to these pages, and no part of these pages is used in another work or publication in any format. It is also prohibited to distribute or copy any part of these pages for commercial purposes.

Technical Warning
The user of the website acknowledges that they have the necessary skills and means to access and use this website. In this regard, the user acknowledges having verified that the IT configuration used is free of viruses and is in proper working condition. Furthermore, before using the website, the user acknowledges ensuring that the browser used allows secure access to the website. The website is accessible 24 hours a day, 7 days a week, except in cases of force majeure, technical and/or IT difficulties, telecommunications difficulties, and/or maintenance. The website owner disclaims any liability for technical defects that may be detected while using the website. The website owner takes all possible measures, within the scope of a general obligation of means, to provide users with a secure website.
By clicking the button below "I accept," you acknowledge that you have read and understood this page, agree to comply with its content, and confirm that you are accessing this website in accordance with the laws and regulations of the jurisdiction or country in which you reside.

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