The markets have closed the first half of a generally very positive year. Equity assets led growth, buoyed, once again, by tech companies. Among bonds, corporate credit outperformed sovereign debt, as the central banks postpone rate cuts and credit spreads continue to narrow.
We persist in our optimism about the global economy and our core scenario—in which world economic growth nears its potential and inflation progressively eases to target levels—remains unchanged.
The US economy is still strong, underpinned by highly resilient consumer spending, healthy balance sheets, and fiscal stimulus through construction sector incentives and a policy to boost domestic output. As such, the economy continues to create jobs with minimal unemployment of 4%.
In Europe, the sustained economic rebound persists, led by economies like Spain, a pivotal driver with strong growth that is consistently revised upward quarter after quarter. In addition, job creation holds steady, real wages continue to be bolstered by private spending, and inflation has begun to ease.
The ECB has started to relax its monetary policy with an initial rate cut; we expect more to follow in the coming quarters. The Fed will follow suit, likely beginning in September. While the path to rate cuts is clear, their timing is uncertain and their severity will be less than estimated a few months ago.
In this context, our EDM Ahorro FI fixed income fund maintains a conservative profile. We capitalised on rate increases in late May to extend the duration slightly and increase the weight of government debt. As credit spreads narrow again, we do not intend to increase the weight of HY bonds. The fund offers an attractive yield and will benefit from the impending rate cuts.
Our equity portfolios, meanwhile, remain invested in a limited number of quality companies, selected after a rigorous analysis of fundamentals by our team in a bottom-up approach.
We remain confident that, over the long term, share prices are driven by profit growth and, according to estimates, our fund portfolios will see double-digit annualised profit growth in the years ahead. Moreover, multiples are at reasonable levels (well below their historical average in the case of EDM Pointer SA SIL and EDM Inversión/Spanish Equity Fund, and consistent with the historical average for EDM Strategy Fund, EDM Global Equity Impact Fund and EDM American Growth Fund). As such, we believe our vehicles offer participants the possibility of obtaining attractive returns with an acceptable degree of risk.
Ricardo Vidal
Chief Investment Officer
LEGAL CONSIDERATIONS
1) This information is for advertising and information purposes only. It is not and cannot be considered investment advice or a legal opinion, is not intended to replace necessary investment advice and does not constitute an offer to sell or a request to buy.
2) All opinions and estimates provided are based on sources believed to be reliable. However, EDM Gestión, S.A., SGIIC cannot guarantee that these sources are accurate or complete, and assumes no liability whatsoever for any direct or indirect loss that may result from the use of the information provided in this document.
3) This information includes data referring to past performance of the products mentioned above. EDM Gestión, S.A., SGIIC warns that past performance is not a reliable indicator of future performance.
4) Investors should be aware that the products included in this document may not be suitable for their specific investment objectives, financial or equity position, or risk profile. Investors should therefore make their own decisions taking into account these circumstances and seek specialised tax, legal, financial, regulatory, accounting or other advice as necessary.
5) It is stated for the record that the instruments included in this information may be affected by various common causes such as:
- Market disruptions due to unforeseeable circumstances.
- Liquidity risks and other risks that alter the performance of the investment.
6) This documentation may include data based on currencies other than those used by the recipients of the documentation. Therefore, the possibility of any upward or downward change in the value of the currency and its impact on the results of the proposed products or instruments must be considered.
7) For each of the EDM Gestión, S.A., SGIIC Funds, a full prospectus, a key investor information document, periodic reports and the latest audited financial statements are available to the public and can be requested free of charge at the registered office of the Management Company or on the website www.edm.es.
8) EDM Gestión, S.A. SGIIC is a public company incorporated under Spanish law, registered in the Collective Investment Undertaking Management Companies Register of the Spanish National Securities Market Commission (CNMV) under number 49 and registered with the Commercial Registry of Madrid in volume 36,739, page 52, sheet M-658.326, with tax identification number A-58.217.175. It engages in the representation, management and administration of investment funds and investment firms domiciled in Spain and under Spanish law, and discretionary investment management.
DISCLAIMER
EDM Ahorro FI is an authorised investment fund regulated by the CNMV (registration no. 47) and managed by EDM Gestión, S.A., S.G.I.I.C. (CNMV registration no. 49). It is a fund with a risk profile of 2 on a scale of 1 to 7. Over the last five years, Class L obtained the following annual returns: 2019: 4.78%; 2020: 0.38%; 2021: 1.58%; 2022: -4.08%; 2023: 5.34%.
EDM Inversión/Spanish Equity Fund is a sub-fund of EDM International SICAV authorised in Luxembourg and regulated by the CSSF (registration no. 851). The Management Company is Waystone Management Company (Lux), S.A., which is subject to oversight by CSSF. The sub-fund is managed and marketed in Spain by EDM Gestión, S.A., S.G.I.I.C. (CNMV registration no. 49). This is a sub-fund under Article 8 of the SFDR. It is a fund with a risk profile of 5 on a scale of 1 to 7. Over the last five years, Class L obtained the following annual returns: 2019: 12.36%; 2020: -10.18%; 2021: 14.52%; 2022: -12.69%; 2023: 17.28%.
EDM Strategy Fund is a sub-fund of EDM International SICAV authorised in Luxembourg and regulated by the CSSF (registration no. 851). The Management Company is Waystone Management Company (Lux), S.A., which is subject to oversight by CSSF. The sub-fund is managed and marketed in Spain by EDM Gestión, S.A., S.G.I.I.C. (CNMV registration no. 49). This is a sub-fund under Article 8 of the SFDR. It is a fund with a risk profile of 4 on a scale of 1 to 7. Over the last five years, Class L obtained the following annual returns: 2019: 30.42%; 2020: 0.28%; 2021: 29.23%; 2022: -17.81%; 2023: 26.01%.
EDM Global Equity Impact Fund is a sub-fund of EDM International SICAV authorised in Luxembourg and regulated by the CSSF (registration no. 851). The Management Company is Waystone Management Company (Lux), S.A., which is subject to oversight by CSSF. The sub-fund is managed and marketed in Spain by EDM Gestión, S.A., S.G.I.I.C. (CNMV registration no. 49). This is a sub-fund under Article 8 of the SFDR. It is a fund with a risk profile of 4 on a scale of 1 to 7. Since its launch on 30/05/2022 and until 31/12/2023, Class L obtained the following annual returns: 2023: 21.24%.
EDM American Growth Fund is a sub-fund of EDM International SICAV authorised in Luxembourg and regulated by the CSSF (registration no. 851). The Management Company is Waystone Management Company (Lux), S.A., which is subject to oversight by CSSF. The sub-fund is managed and marketed in Spain by EDM Gestión, S.A., S.G.I.I.C. (CNMV registration no. 49). This is a sub-fund under Article 8 of the SFDR. It is a fund with a risk profile of 5 on a scale of 1 to 7. Since the inception of Class L on 18/01/2021 and until 31/12/2023, it obtained the following annual returns: 2022: -43.38%; 2023: 34.92%.
EDM Pointer SA SIL is an authorised hedge fund regulated by the CNMV (registration no. 26) and managed by EDM Gestión, S.A., S.G.I.I.C. (CNMV registration no. 49). It is a fund with a risk profile of 4 on a scale of 1 to 7. Since its launch on 26/11/2021 and until 31/12/2023, Class A obtained the following annual returns: 2022: -7.96% and 2023: 13.16%.
