Edmond de Rothschild AM (EdRAM) has announced that its financial bond fund focusing on subordinated debt, Edmond de Rothschild Signatures Financial Bonds, has reached €1bn of assets under management.
Since inception in April 2011, the fund has delivered annual returns of over 5%, said the firm.
In a low-rate environment, financial debt offers attractive yields. EdRAM has set a target to achieve an average yield of 6% on the segment in 2015.
The fund’s managing team led by Julien de Saussure is running a defensive strategy in order to limit liquidity risk.
As at 30 June 2015, Edmond de Rothschild group manages €149.6bn in assets.