A credit fund invested primarily in bonds with a residual maturity of five years or less is, in our view, a suitable solution for investors' long-term cash investments. With this in mind, the EdR SICAV Short Duration Credit fund, which is precisely positioned on the short end of the curve, offers targeted exposure to short-term bonds, combining the search for yield with prudent interest rate risk management.
Short duration credit fund, for long-term cash investments
Fund inception :
20/01/2020
A seasoned team of experts with more than 10 years’ average experience
2 years minimum investment horizon
Carries a risk of capital loss and credit risk
SFDR1 classification Article 8
Portfolio Manager - High Yield
Portfolio Manager - Financial Debt
Defensive Approach
A strategy designed to provide access to short-term corporate bonds with the aim to limit drawdowns and risks, particularly credit and interest rate risks.
Dynamic Allocation
A dynamic allocation between Investment Grade2 (min 30%) and High Yield3 (min 30%), calibrated according to developments in the economic cycle
Ladder4 Strategy
An investment approach providing steady modified duration (c. 2 years) and an innovative adjustment mechanism to market dynamics
The investment strategy is focused on the selection of companies with, according to our analysis, a low refinancing risk.
A defensive approach aimed at mitigating risks and drawdowns:
- A short-term credit portfolio with max. 10% of issues with maturity over 5 years.
- A dynamic allocation between Investment Grade2 and High Yield3 to manage the portfolio’s exposure to risk at different stages of the credit cycle.
- A broad diversification: the opportunity to invest in companies located in OECD, European Union, European Economic Area or G20 countries, with no sector and/or rating constraints.
The ladder4 structure: key features and rationale
- The Ladder-type approach equally weights maturities in separate buckets. This strategy aims to reducing interest rate and credit risks favouring a structural and steady structure, with in particular a stable low duration of around 2 years.
- Furthermore, early repayment premiums and issue premiums on the primary market are automatically reinvested each month as debt falls in the portfolio, thus providing a constant flow of liquidity.
- Finally, this structure ensures that the investment process continuously takes into account changes to market dynamics over time.
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 recommended investment period. Credit risk linked to investments in speculative securities: The UCITS may invest in issues from countries or companies rated, at the time of purchase, as “non-investment grade” by a rating agency (rating of less than BBB- according to Standard & Poor’s or any other equivalent rating assigned by an independent agency that has an equivalent internal rating issued by the Management Company) or which are considered equivalent by the Management Company. These issues are securities deemed speculative and present a higher risk of issuer default. This UCITS should be considered partly speculative and aimed specifically at investors who are aware of the risks inherent in investing in these securities. Thus, the use of “high yield” securities (speculative securities presenting a greater risk of issuer default) may result in a greater risk of falling NAV. Credit risk: The main risk linked to debt securities and/or money market instruments such as treasury bills (BTFs and BTANs) or short-term negotiable securities is that of issuer default, due either to the non-payment of interest and/or the non repayment of capital. Credit risk is also associated with the downgrading of an issuer. Shareholders are reminded that the net asset value of the Sub-fund is likely to fall if a total loss is recorded on a financial instrument following default by an issuer. The inclusion of debt securities in the portfolio, whether directly or through UCIs, exposes the Sub-fund to the effects of variations in credit quality. Interest rate risk: By holding debt securities and money market instruments, funds are exposed to changes in interest rates. This risk is defined as a rise on interest rates causes a decline in bonds valuation and therefore a fall in of the fund’s NAV.
1. SFDR classification: A fund’s investment policy may change over time and may therefore lead to a change in its classification pursuant to the Sustainable Finance Disclosure Regulation (SFDR). If you have any doubts regarding a fund’s SFDR classification, please contact your usual adviser.
2. Investment Grade: Bonds rated in the “high quality” category by credit rating agencies (rated BBB or higher).
3. High Yield: Corporate bonds with a higher default risk than Investment Grade (or “investment category”) bonds, offering in return a higher coupon.
4. A ladder-type portfolio: A ladder-type portfolio aims to equally weight the various maturity buckets.
This document is issued by Edmond de Rothschild Asset Management France. This non-contractual document is designed for information purposes only. Reproduction or use of its content 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 enter into a transaction in any jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not authorised to act. This document does not constitute and should not be construed as investment, tax or legal advice, or 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 this information.
The funds presented may not be authorised for marketing in your country of residence. If you have any doubts about your ability to subscribe to a fund, please contact your usual adviser. The figures, comments, projections 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 as at the date of preparation. They may no longer be relevant on the date on which the investor becomes aware of them. Consequently, the Edmond de Rothschild Group shall not be held liable for the quality or accuracy of information and economic data obtained from third parties.
All investments involve specific risks. Investors are therefore advised to ensure that any investment is suitable for their personal circumstances, seeking independent advice where appropriate. In addition, they must read the Key Information Document (KID) and/or any other document required by local regulations, which is provided before any subscription and is available in French on the website www.edmond-de-rothschild.com under the “Fund Center” tab or free of charge on request. A summary of investors’ rights in French can be obtained via the following link. The management company may decide to cease the marketing of 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: unless otherwise indicated, the sources used in this document are those of the Edmond de Rothschild Group. © Copyright Edmond de Rothschild. All rights reserved.
GLOBAL DISTRIBUTOR AND MANAGEMENT COMPANY
Edmond de Rothschild Asset Management (France)
47 rue du Faubourg Saint-Honoré / FR - 75401 Paris Cedex 08
Public limited company with a Management Board and Supervisory Board and a share capital of €11,033,769
AMF approval number GP 04000015 – 332.652.536 R.C.S. Paris
REPRESENTATIVE AND PAYING AGENT IN SWITZERLAND
Edmond de Rothschild (Suisse) S.A.
Rue de Hesse 18 / CH - 1204 Geneva
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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 applicable regulations 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."
The regulations in each country regarding the marketing of a financial instrument vary depending on the country and your status (especially as a 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.
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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 only be made 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 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
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.
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Consult the personal data protection charter.
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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 its Data Protection Officer are as follows: 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.
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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 in 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 from jurisdictions where the publication or access to this 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.
Absence of Advice or Offer
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 applicable regulations in the United States. Therefore, no investment product may be offered or sold directly or indirectly 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 in 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 only be made 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 stipulated 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 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
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 its Data Protection Officer are as follows: 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.
Applicable Law
The use of this website and these terms are governed by French law. Any dispute related to the application of these terms and the use of the website falls under the jurisdiction of the French courts.
Hyperlinks
It is prohibited to create hyperlinks pointing to this website without the knowledge of the Edmond de Rothschild Group.
Before setting up such links, you must request permission from the Edmond de Rothschild Group. Your request should be addressed to the Marketing Department, 47 rue du Faubourg Saint-Honoré, 75401 Paris, Cedex 08, France, or via the following email address: info@edram.fr.
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 possess the necessary skills and means to access and use this website. In this regard, the user acknowledges that they have 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.
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