BPERE

An extremely fruitful year for the Edmond de Rothschild Prifund Inflation Linked Bonds Fund

The Edmond de Rothschild Prifund Inflation Linked Bonds Fund (ISIN Code LU0220386568), managed by David Diwan, CFA, ended the year 2011 with a record performance of 10.84%. This excellent result comes about due to an overweighting of US inflation and a judicious choice of maturities, favouring long dated maturities.

The fund also won a second place ranking from Morningstar in its classification of the ten best funds in its category in 2011 (published in the Wall Street Journal Europe on November 12th 2011).

Edmond de Rothschild Prifund Inflation Linked Bonds forges ahead, with Lipper honouring it last April with an award for its remarkable performances over three and five year time horizons in the Netherlands category of European inflation linked bond funds.

Edmond de Rothschild Prifund Inflation Linked Bonds seeks optimum long-term capital growth by investing principally in inflation-linked bonds from around the world. Considering the recent rise of inflation in the euro zone (3% in November) and the worrying outlook associated with the sharp rise in oil and agricultural commodity prices, investors are turning increasingly to inflation-linked bonds. The attraction of these instruments rests in their real returns, which take into account future rises in the level of inflation, thus protecting the purchasing power of the bond’s coupons and capital in the future. Against a background of historically low interest rates and growing budget deficits, inflation-linked bonds enable investors to purchase highly liquid government paper without the constraints of classic government bonds.