Edmond de Rothschild IM launches credit fund
Edmond de Rothschild Investment Managers (EdRim) has launched Edmond de Rothschild Millésima 2016, a fund operating a buy and hold strategy to profit from credit spreads.
The goal of the fund is to benefit from the risk currently offered by markets and the credit spreads that have been widening since the start of the summer.
The premiums offered by the corporate credit market are particularly high, EdRim observed, including those generated by high quality corporate bonds.
As banking credit becomes restricted, companies are becoming increasingly dependent on capital markets to guarantee their financing, the company said. Corporate bonds offer attractive yield to maturity spreads with limited risk in the short to medium term, it added.
The fund’s portfolio will primarily be composed of euro-denominated bonds issued by financial and industrial companies with a 2016 maturity date.
“In a context marked by a number of uncertainties, this fund appeals to investors looking for regular returns. The current opportunities in credit markets allow us to offer a particularly attractive product in terms of its risk/return profile…when volatility in equity markets is so high,” commented Etienne Gorgeon, head of tax and credit management.
Corporate credit markets are increasingly attracting attention from asset managers in Europe. Rival French group Natixis Asset Management similarly launched a European credit fund earlier this week.
Paris-based EdRim is the asset management subsidiary of La Compagnie Financière Edmond de Rothschild.