22.07.2024, 17:46 Uhr
In der Auseinandersetzung um die Besetzung des VR-Präsidiums bei Logitech hat sich der Firmengründer Daniel Borel durchgesetzt. Auf seinen Antrag muss VR-Mitglied Guy Gecht für das Amt nominiert werden.
Attractive alternative to cash for Euro mandates
Rothschild Asset Managements Ultra Short Term Credit Strategy is pertinent for investors seeking positive returns on their Euro strategic cash allocation in the current rate environment.
Amid the persisting negative interest-rate environment, Rothschild Asset Managements R Credit Horizon 12M fund offers investors with material Euro cash holdings an appealing opportunity. The fund aims to generate positive yields by investing in short term European corporate Investment Grade issuers, whilst maintaining a very conservative risk profile featuring a low beta, low modified duration and low default risk.
The policy rates close to or below zero from certain central banks has led them to implement several unconventional policies to provide additional monetary stimulus. While the motivations behind these decisions may differ, they all expose institutional investors to the same challenges in the search for yield on their Euro-denominated cash holdings. The recent Brexit and the resulting monetary actions have exacerbated the issue, despite the fact that equity markets have recouped their losses. With R Credit Horizon 12M, Rothschild Asset Management intends to offer an interesting solution suitable for investors facing this dilemma. With an average maturity of less than 12 months, the fund focuses exclusively on high-quality bonds in the Investment Grade segment in order to capture risk premia and outperform the EONIA.
While the reference index ended the year 2015 in negative territory, R Credit Horizon 12M posted a performance gain of 36 basis points, with a volatility of less than 0.4, resulting in a Sharpe Ratio of 2.4. Year-to-date performance is +67 basis points (as of 11th August), again demonstrating the funds capability to outperform the EONIA while adopting a conservative positioning based on rigorous Risk Management. The funds yield-to-maturity today is between 30 to 40 basis points. However, the experienced teams ongoing credit risk management has allowed performance to slightly exceed this, with current expected net yield between 40 and 80bp. The strategy is therefore suitable for investors who have an investment horizon of more than six months for their cash.
Diversification for lower risk
With assets totalling EUR 541 million, R Credit Horizon 12M has a broadly diversified portfolio of currently 187 securities, with the top ten holdings weighing between 1.4% and 2.2%. The low modified duration of 0.7 highlights the fundamental goal of the strategy: to protect investors from interest-rate risk.
Rothschild is convinced that a prudent, active management of both duration and issuer risk is key to adapting continually to interest-rate evolutions and market movements.
Rothschild offers share classes that are tailored to institutional investors and private clients alike against the backdrop of negative interest
Amid the persisting negative interest-rate environment, Rothschild Asset Managements R Credit Horizon 12M fund offers investors with material Euro cash holdings an appealing opportunity. The fund aims to generate positive yields by investing in short term European corporate Investment Grade issuers, whilst maintaining a very conservative risk profile featuring a low beta, low modified duration and low default risk.
The policy rates close to or below zero from certain central banks has led them to implement several unconventional policies to provide additional monetary stimulus. While the motivations behind these decisions may differ, they all expose institutional investors to the same challenges in the search for yield on their Euro-denominated cash holdings. The recent Brexit and the resulting monetary actions have exacerbated the issue, despite the fact that equity markets have recouped their losses. With R Credit Horizon 12M, Rothschild Asset Management intends to offer an interesting solution suitable for investors facing this dilemma. With an average maturity of less than 12 months, the fund focuses exclusively on high-quality bonds in the Investment Grade segment in order to capture risk premia and outperform the EONIA.
While the reference index ended the year 2015 in negative territory, R Credit Horizon 12M posted a performance gain of 36 basis points, with a volatility of less than 0.4, resulting in a Sharpe Ratio of 2.4. Year-to-date performance is +67 basis points (as of 11th August), again demonstrating the funds capability to outperform the EONIA while adopting a conservative positioning based on rigorous Risk Management. The funds yield-to-maturity today is between 30 to 40 basis points. However, the experienced teams ongoing credit risk management has allowed performance to slightly exceed this, with current expected net yield between 40 and 80bp. The strategy is therefore suitable for investors who have an investment horizon of more than six months for their cash.
Diversification for lower risk
With assets totalling EUR 541 million, R Credit Horizon 12M has a broadly diversified portfolio of currently 187 securities, with the top ten holdings weighing between 1.4% and 2.2%. The low modified duration of 0.7 highlights the fundamental goal of the strategy: to protect investors from interest-rate risk.
Rothschild is convinced that a prudent, active management of both duration and issuer risk is key to adapting continually to interest-rate evolutions and market movements.
Rothschild offers share classes that are tailored to institutional investors and private clients alike against the backdrop of negative interest
