By Xiadong Bao, Fund Manager, Edmond de Rothschild Fund Big Data and Maguy Macdonald, Invesment Specialist - Thematic Equities.
Market Review
As summer draws to a close, markets have taken a completely different turn. Following a volatile first quarter, the period that followed the publication of Q2 earnings results has reaffirmed the merits of our positioning: maintaining a contrarian exposure to software and healthcare stocks has proven to be both a powerful and a diversifying source of returns.
On the software front, which is our largest overweight, fears of AI disruption were tempered by a very good earnings season, as software companies are quickly adapting their offering to integrate AI agents.
Although monetization is too early to significantly impact the revenue line, usage is here, and constructive comments around internal efficiencies linked to AI are a long-term positive. Additionally, private equity and corporate acquirers stepped in to show interest from depressed multiple levels in the likes of Accelerant, CCC Intelligent Solutions (a portfolio company), and Workday1, helping to set a floor for software valuations.
Key Drivers of Performance
Over the past three months, EdR Fund Big Data I EUR returned +13.21%, compared with +3.50% for the MSCI World2. This strong rebound has more than offset the first-quarter underperformance and places the fund well ahead of its benchmark with a year-to-date return of 22.74%, compared with 14.63% for its benchmark index. Stock selection has been the largest driver of returns, underlining the value of our active, bottom-up investment process.
Our healthcare names were among our top contributors, supported by both our overweight positioning and stock picking, followed by software, hardware, and communication services3. The strongest individual contributors reflected the breadth of the portfolio's exposure to the most innovative segments, across both tech and non-tech players.
Veeva Systems4 benefited from strong adoption within top 20 biopharma clients, accelerating growth and encouraging progress in agentic AI solutions. Illumina4 delivered robust quarterly results and raised guidance, supported by strong clinical demand for its NovaSeq X sequencing platform. OVH Groupe, Bruker, and NetApp4 also contributed strongly, with each benefiting from structural demand in sovereign cloud, life sciences, and AI infrastructure, respectively.
Portfolio Adjustments
We made selective changes to the portfolio during the period. We sold AXA4 and initiated a position in Munich Re4, reducing exposure to French political-risk headlines while adding a world-class reinsurer with a particularly strong capital base, a conservative balance sheet, and a high-quality fixed-income portfolio.
According to us, Munich Re also offers an interesting entry point into the practical deployment of AI in claims and risk workflows.
Outlook & Positioning
The unwinding of a highly leveraged AI-focused portfolio in July reminded us that markets do not reward investors simply for anticipating the future; they reward those able to remain solvent and disciplined as it unfolds.
We are in a super cycle of AI, and its monetization is just getting started, but we are also operating against the backdrop of potentially persistent "higher-for-longer" rates concerns. We believe the Fund remains well positioned as it retains a balanced, low-duration profile. Its forward P/E of around 16x remains below that of the MSCI World (at 18x), while its free-cash-flow yield is materially higher than its universe (4.5% vs 3.3%)5.
We continue to favour companies with limited leverage, strong cash generation and resilient business models. While we recently took some profits on some of our outperforming software holdings, we continue to believe that vertical and data-centric software are among the most attractive beneficiaries of the AI supercycle, as artificial intelligence expands addressable markets and supports long-term value creation.
Our approach remains anchored around three pillars:
- Disciplined stock picking in data-driven companies;
- Diversification across sectors, style factors, and market capitalizations;
- Strict risk management.
These three components have historically been key drivers of outperformance and remain for us well suited to the current market environment.
1 The information regarding companies contained in this document should in no way be construed as an opinion by Edmond de Rothschild Asset Management (France) on the future performance of the share prices of the companies in question, nor, where applicable, on the likely performance of the financial instruments that these companies may issue. No information contained in this document may be construed as a solicitation to buy or sell these shares. The composition of the portfolio may change in the future.
2 Source: Edmond de Rothschild Asset Management (France). 10-year annualised performance of EdR Fund Big Data (I-EUR share class): 14.92%, compared with 12.67% for the MSCI World (NR). Data as of 27/08/2026.
Past performance is not a guarantee of future results. Performance is not consistent over time. Performance figures do not take into account fees and commissions incurred in connection with the issuance and redemption of shares, but include ongoing expenses, intermediary fees, and any performance fees charged.
3 Source: Edmond de Rothschild Asset Management (France). Data as of the end of August. The composition of the portfolio may change over time. The investment process described in this document presents several internal limits decided by the portfolio management team. This reflects the current investment process that may change in the future.
4 The information regarding companies contained in this document should in no way be construed as an opinion by Edmond de Rothschild Asset Management (France) on the future performance of the share prices of the companies in question, nor, where applicable, on the likely performance of the financial instruments that these companies may issue. No information contained in this document may be construed as a solicitation to buy or sell these shares. The composition of the portfolio may change in the future.
5 Source: Edmond de Rothschild Asset Management (France). The investment universe referred to is the MSCI World. Data as of the end of August.
Main investment risks:
This is a marketing communication. Please refer to the UCITS prospectus and key information documents before making any final investment decision.
EdR Fund Big Data is a sub-fund of the Luxembourg SICAV authorised by the CSSF and authorised for marketing in Austria, Switzerland, Germany, Spain, France, United Kingdom, Italy, Luxembourg and Portugal.
Unit I of this UCI is rated in category 4. 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 outlined below are not exhaustive. Please refer to the prospectus for information on other risks. 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. Risk of concentration: The investments in certain specific sectors of the economy can have negative consequences in case of devaluation of the concerned sectors.
Equity risk: The value of a stock may change depending on factors specific to the issuer but also on exogenous, political or economic factors. The SICAV may be exposed to the equity markets either via direct investments in equities and/or via financial contracts and/or UCITS. Fluctuations of the equity markets may lead to substantial variations in the net assets which may have a negative impact on the performance of the SICAV. Fund performance will depend on companies picked by the investment company. Risks associated with investing in emerging markets: The portfolio may be exposed to certain securities with a higher degree of risk than that generally associated with investments in the main financial markets, in particular due to local political and/or regulatory factors. The legal framework of certain countries in which the underlying UCITS and investment portfolio may invest may not provide the same protection or information to the investor as is usually provided in the main financial markets. Securities issued in certain so-called emerging markets may be significantly less liquid and more volatile than those issued in more mature markets. In this respect, securities from emerging countries offer less liquidity than those from developed countries; consequently, holding these securities may increase the level of portfolio risk. As a result, the net asset value may fall more sharply and rapidly than in developed countries. Risk from investing in small and mid cap companies: Investment in small and medium enterprises may entail greater risk than that generally deriving from investments in larger and better established enterprises. Sub-Funds which invest in smaller companies may fluctuate in value more than other Sub-Funds because of the greater potential volatility of Share prices of smaller companies. Currency risk: The capital may be exposed to foreign exchange risk when the securities or investments it is composed of are denominated in a currency other than that of the Fund. Currency risk is the risk of a reduction in the net asset value of the Fund when an investment is made in a currency other than that of the Fund. Warning relating to the risk of inflation: The characteristics of the UCI do not protect the investor from the potential effect of inflation during the period of investment in the UCI. Thus, the amount invested in principal and the possible income from movable property received during the period will not be revalued by the rate of inflation over this same period. Therefore, the real performance of the UCI, i.e. the net performance of the UCI corrected by the inflation rate, could be negative.
Disclaimer
31/08/2026. This document has no contractual value, it is designed exclusively for information purposes. Any reproduction or use of all or part of its content is strictly prohibited without the authorisation of the Edmond de Rothschild Group.
The information contained herein should not be construed as an offer or solicitation of a transaction in any jurisdiction in which such offer or solicitation would be unlawful or in which the person making the offer or solicitation is not authorized to act. This document does not constitute and should not be construed as investment advice, tax or legal advice, or a recommendation to buy, sell or continue to hold any investment. The Edmond de Rothschild Group cannot be held liable for any investment or divestment decision taken on the basis of the information contained in this document.
This document has not been reviewed or approved by any regulator in any jurisdiction. The regulations concerning the marketing method of a UCI vary from country to country. The UCIs presented may not be authorized for sale in your country of residence. If you have the slightest doubt about your ability to subscribe to this mutual fund, we invite you to contact your usual advisor.
This document is not intended for citizens or residents of the United States of America or "U.S. Persons" as that term is defined in Regulation S of the U.S. Securities Act of 1933. No bullion product shown herein is permitted for sale under the Securities Act of 1933 or any other applicable U.S. regulations. Therefore, no investment product may be offered or sold, directly or indirectly, in the United States of America to residents and citizens of the United States of America and to U.S. Persons. The figures, comments, projections and other elements contained in this presentation reflect the Edmond de Rothschild Group's feelings on the markets, their evolution 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 becomes aware of them. Consequently, the Edmond de Rothschild Group cannot be held responsible for the quality or accuracy of the economic information and data obtained from third parties.
Any investment involves specific risks. It is therefore recommended that investors ensure that any investment is appropriate to their personal situation by using independent advice if necessary. In addition, they must read the Key Information Document (KID) and/or any other document required by local regulations, provided before any subscription and available in French and English on the website www.edmond-de-rothschild.com "Fund Center" tab or free of charge on request.
Past performance and volatility are not indicative of future performance and volatility and are not constant over time. In particular, they may be independently affected by changes in exchange rates. The performance data does not take into account the commissions and fees received when the units or shares of the UCI are issued and redeemed.
"Edmond de Rothschild Asset Management" or "EdRAM" is the trading 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
The Management Company is required to pay a share of the UCI's financial management fees to intermediaries such as investment firms, insurance companies, management companies, intermediary marketing structurers, distributors or distribution platforms with whom an agreement has been signed in the context of the distribution, the placement of the units of the mutual fund or the establishment of contacts with other investors. This remuneration is variable and depends on the business relationship in place with the intermediary and on the improvement in the quality of the service provided to the customer that can be justified by the beneficiary of this remuneration. This remuneration may be a lump sum or calculated on the basis of the net subscribed assets resulting from the intermediary's action. The intermediary may or may not be a member of the Edmond de Rothschild group. Each intermediary will communicate to the client, in accordance with the regulations applicable to it, any useful information on costs and expenses and its remuneration.
The management company 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.
Source of information: Unless otherwise indicated, the sources used in this document are those of the Edmond de Rothschild Group.
For EU investors: This document is issued by Edmond de Rothschild Asset Management (France). You can obtain a summary of investor rights in English and French at the following link: https://www.edmond-de-rothschild.com/media/go5fm1hx/edram-en-main-rights-of-investors.pdf. The SICAV is registered with the CNMV under number 229.
For Swiss investors: This marketing document is issued by Edmond de Rothschild (Suisse) S.A., located at Avenue de l'Etang 62b, 1219 Châtelaine, Switzerland, a Swiss bank authorised and regulated by the Swiss Financial Market Supervisory Authority ("FINMA"). The sub-funds of "Edmond de Rothschild SICAV" listed in this document are sub-funds of the SICAV under French law "Edmond de Rothschild SICAV" approved by the AMF and have been approved by FINMA to be offered in Switzerland to non-qualified investors. The articles of association, the prospectus, the key information document as well as the annual and half-yearly reports are available for free on www.edmond-de-rothschild.com, the "Fund Center" tab or on request from the Representative.
REPRESENTATIVE AND PAYMENT SERVICE IN SWITZERLAND: Edmond de Rothschild (Suisse) S.A.; Avenue de l'Etang 62b, 1219 Châtelaine, Switzerland.
MANAGEMENT COMPANY & GLOBAL DISTRIBUTOR
EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE)
47, rue du Faubourg Saint-Honoré, 75401 Paris Cedex 08
Public limited company with a Management Board and Supervisory Board and a capital of 11,033,769 euros. AMF approval number GP 04000015, 332.652.536 R.C.S. Paris, www.edram.fr
EDMOND DE ROTHSCHILD FUND SICAV
4, rue Robert Stumper, L - 2557 Luxembourg
Grand Duchy of Luxembourg
