Europe is at the heart of our convictions

Europe’s upbeat economic and political environment

Europe’s upbeat economic and political environment


The European recovery has been underpinning the continent’s markets since the beginning of 2017 and it continues to do so thanks to a boost from the recent French presidential election

The eurozone's recent reduction in political risk and an acceleration in the economic recovery have created a favourable environment for European assets. What effect has that had on our investment strategies? Benefit from this environment by discovering some of our investment convictions:

Edmond de Rothschild Fund
Bond Allocation


 
 

Does the low interest rate environment signal the end of bond yields?

  • Current bond yields require flexible and active investing
  • Europe has some interesting opportunities
  • An active duration management to limit the impact of yield moves

Edmond de Rothschild
Signatures Financial Bonds


 
 

Why does financial debt offer opportunities today?

  • European regulation means banks and insurance companies are better capitalised
  • An increase in rates would be good for bank profitability
  • Political risk is largely behind us
  • Valuations still offer opportunities

Edmond de Rothschild Fund
Income Europe


 
 

Has EdRF Income Europe been able to generate regular income?

  • The fund targets regular income but seeks to keep volatility under control
  • The equity bucket focuses on companies with attractive dividend payouts
  • The bond sleeve comprises corporate bonds and subordinated financial debt

Edmond de Rothschild
Tricolore Rendement


 
 

Are French equities the new Eldorado now that political risk has abated?

  • France is expected to embark on a serious reform package
  • Growth is recovering in the eurozone
  • Valuations are still attractive

Edmond de Rothschild
Europe MidCaps


 
 

How can midcap stocks tap into the recovery in European growth?

  • The economic environment is favourable in Europe
  • Midcaps are more domestically focused so are benefiting more directly from this growth environment
  • Close proximity with senior executives in portfolio companies is essential

Edmond de Rothschild Fund
Europe Synergy


 
 

Is renewed momentum on the M&A market a source of performance for European equities?

  • The economic environment and the outlook for earnings are both positive
  • Today’s strong M&A deal flow is expected to last
  • Our strategy owned positions in the two largest deals so far this year
Edmond de Rothschild Fund Bond Allocation, Edmond de Rothschild Fund Income Europe, Edmond de Rothschild Fund Europe Synergy are sub funds of the Luxembourg-regulated SICAV which are approved by the CSSF and approved for marketing Austria, Belgium, Swizerland, Germany, Spain, France, Italy, Luxembourg. Edmond de Rothschild Fund Europe Synergy and Edmond de Rothschild Fund Income Europe are also registered in the United-Kingdom.

The risks described below are not exhaustive. Main investment risks :


EdRF Bond Allocation is classified in category 3 (A EUR and I EUR shares) in line with the nature of securities and geographical zones in the “objectives and investment policy” section of the key investor information document (KIID). Main investment risks: Capital loss risk, Credit risk, Credit risk from investing in speculative securities, Interest rate risk, Risks from emerging market investments, Risk from participation in financial contracts and counterparty risk.

EdR Signatures Financial Bonds is classified in category 4, in line with the nature of securities and geographical zones in the «objectives and investment policy» section of the key investor information document (KIID). The risks described below are not exhaustive: it is the responsibility of investors to analyse each investment’s risk and to come to their own opinion. Main investment risks: Risk of capital loss, Sector risk, Risk linked to discretionary management, Interest rate risk, Credit risk, Liquidity risk.

Edmond de Rothschild Fund Income Europe is classified in category 3 (A EUR and I EUR shares) in line with the nature of securities and geographical zones in the “objectives and investment policy” section of the key investor information document (KIID). Main investment risks: Capital loss risk, Credit risk, Equity risk, Credit risk from investing in speculative securities.

Edmond de Rothschild Tricolore Rendement is rated in category 6, in line with the type of securities and geographic regions detailed under the heading “Objectives and investment policy”, as well as the currency of the unit. Main investment risks: Capital risk, Equity risk, Interest rate risk, Credit risk.

Edmond de Rothschild Europe MidCaps is rated in category 6, in line with the type of securities and geographic regions detailed under the heading “Objectives and investment policy”, as well as the currency of the unit. Main investment risks: Capital risk, Equity risk, Interest rate risk, Currency risk.

Edmond de Rothschild Fund Europe Synergy is a category 6 (A and I shares) or high risk/ return Subfund profile which reflects its ability to be up to 110% exposed to equity markets. The risks described below are not exhaustive: it is the responsibility of investors to analyse each investment’s risk and to come to their own opinion. Main investment risks: Capital loss risk, Equity risk, Discretionary management risk, Risk from investing in small and mid-caps, Exchange rate risk.

May 2017. Non-binding document. This document is for information only. Legal Disclaimer: This document is non-binding and its content is exclusively designed for information purposes. Any reproduction, alteration, disclosure or dissemination of this material in whole or in part without prior written consent from the Edmond de Rothschild Group is strictly prohibited. The information provided in this document should not be considered as an offer, an inducement, or a solicitation to deal, by anyone in any jurisdiction where it would be unlawful or where the person providing it is not qualified to do so. It is not intended to constitute, and should not be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell or continue to hold any investment. EdRAM shall incur no liability for any investment decisions based on this document. This document has not been reviewed or approved by any regulator in any jurisdiction. The regulation concerning marketing conditions of UCITS and AIFs ("Funds" hereafter) varies from country to country. The Funds presented herein may not be registered and/or authorised in your country. You should seek advice from your professional advisor if you are in doubt as to whether any of the Funds mentioned might be suitable for your individual situation. This document is not intended for citizens or residents of the United States of America or "U.S. Persons" as defined by "Regulation S" under the U.S. Securities Act of 1933. No investment product presented herein is registered under the Securities Act of 1933 or any other United States regulation. Then, they cannot be offered or sold directly or indirectly in the United States of America, to or to the benefit of residents and citizens of the United States of America and to «U.S. Persons». The figures, comments, forward looking statements and elements provided in this document reflect the opinion of EdRAM on market trends based on economic data and information available as of today. They may no longer be relevant when investors read this document. In addition, EdRAM shall assume no liability for the quality or accuracy of information / economic data provided by third parties. Any investment involves specific risks. We recommend investors to ensure the suitability and/or appropriateness of any investment to its individual situation, using appropriate independent advice, where necessary. Furthermore, investors must read the key investor information document (KIID) and/or any other legal documentation requested by local regulation, that are provided before any subscription and available at http://funds.edram.com section, or upon request free of charge. Past performance and past volatility are not reliable indicators for future performance and future volatility. Performance may vary over time and be independently affected by, inter alia, changes in exchange rates. Performance data does not include commissions and costs incurred on subscriptions and redemptions of units or shares of the Funds. « Edmond de Rothschild Asset Management » or « EdRAM » refers to the Asset Management division of the Edmond de Rothschild Group. In addition, it is the commercial name of the asset management entities (including branches and subsidiaries) of the Edmond de Rothschild Group.

Disclaimer for Swiss clients: Edmond de Rothschild Fund - Global Data is a subfund of the Luxembourg SICAV Edmond de Rothschild Fund, approved for distribution in Switzerland or from Switzerland by the Autorité Fédérale de Surveillance des Marchés Financiers (“FINMA”). Edmond de Rothschild Asset Management (Suisse) S.A. was authorised by FINMA as Swiss representative of Edmond de Rothschild Fund (“the Fund”) and the fund Edmond de Rothschild Tricolore Rendement and Edmond de Rothschild Signature Financial Bonds. The Fund’s articles of incorporation, the partial prospectus, the KIIDs, the partial annual and partial semi-annual reports of the Fund, may be obtained, on simple request and free of charge, at the head office of the Swiss representative, 8, rue de l’Arquebuse, Case postale 5441, 1211 Geneva. Edmond de Rothschild (Suisse) S.A. acts as paying agent of the Fund (18, rue de Hesse – 1204 Genève – Switzerland). Performances quoted relate to past years. Past performance is not a reliable indicator of future performance. The performance data do not take account commissions and fees charged on the issue and redemption of units. The customer may receive upon request details of the remuneration relating to the marketing of this product.

Disclaimer for Spanish clients: Edmond de Rothschild Asset Management has a Spanish Branch registered with the Comisión Nacional del Mercado de Valores (the “CNMV”) under no. 47, with registered office at Paseo de la Castellana, 55 - 28046 - Madrid. The accompanying information does not form part of or constitute an official prospectus for the fund and has not been registered with, verified or approved by the CNMV. Edmond de Rothschild Fund SICAV CNMV number is n.229. For further details and information about the fund consult the fund prospectus, bylaws and financial reports, all of which are available from any authorised distributor or from the CNMV. Edmond de Rothschild Tricolore Rendement is registered under the n°791. Edmond de Rothschild Signature Financial Bonds CNMV number is n.969.

GLOBAL DISTRIBUTOR
EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE)
47, rue du Faubourg Saint-Honoré, 75401 Paris Cedex 08
Société anonyme governed by an executive board and a supervisory board with capital of 11,033,769 euros
AMF Registration No. GP 04000015 - 332.652.536 R.C.S. Paris

MANAGEMENT COMPANY
EDMOND DE ROTHSCHILD ASSET MANAGEMENT (LUXEMBOURG)
16, Boulevard Emmanuel Servais, L-2535 Luxembourg

SUB INVESTMENT MANAGER
EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE)
47, rue du Faubourg Saint-Honoré, 75401 Paris Cedex 08