EdRAM launches corporate bond fund in Germany
Edmond de Rothschild Asset Management (EdRAM) has launched a new corporate bond fund, which is now available for distribution in Germany.
The Millesima 2021 fund, which is jointly managed by Paris-based Raphaël Chemla, head of High Yield and Financial Bonds and Julie Gualino-Daly, fund manager, invests predominantly in European high yield bonds, with a maximum of 10% invested in CCC+ to CCC- bonds. It is set to hard close as of 31.12.2021.
The fund will be marketed among investors in Germany until 30th of June 2016, EdRAM aims to attract investors to a buy and hold strategy and targets an annual return of 3.8%.
“Given the persistent low or even negative interest rats combined with volatility in high risk assets, investors are increasingly looking for investment solutions with predictable risk levels and attractive yields” explains Raphaël Chemla.
The fund aims to capitalise on the sharp grow of the high yield market in Europe, with the number of HY issusers having quadrupled over the last five years, while default rates in Europe are currently at 3%, compared to 6% in the US.