- The Bryan Garnier Credit Fund gained 0.78% in December 2016, bringing its year-to-date performance to 4.15% and cumulative return since inception in September 2011 to 27.38%. - At the end of December, 48.1% of the fund was invested in high-yield and non-rated bonds, up from 44.2% in November. The interest rate hedge was reduced to -12.5% from -35.8% previously. - The top positive bond contributors to performance in December were investments in Salini Impregilo, Louis Dreyfus, Telecom Italia, Faurecia, and Fiat.

1. Monthly fund report March 31, 2012
NAV (30/12/2016)
8.53 m
2.18%
Inception date
ISIN Code FR 001 108 91 92
Subscription fee 0 - 2% max
Redemption fee None
Management fee Part A : 0.8% Part B : 1.1%
Amount per share EUR 1.000
Currency Euro
Auditor PWC - SELLAM
Custodian RBC IS
Redemption Daily
Important Information
daily cut-off time is 11:00AM
Available for fund execution on HSBC fast
BRYAN GARNIER ASSET MANAGEMENT SA
26 avenue des Champs-Elysées 75008 Paris
Tel : +33 1 56 68 75 82 Bertrand VALTON + 33 1 56 68 75 48
www.bryangarnier-am.fr
September 16, 2011
Eonia -0,03% -0,09% -0,32%
Subscription/Redemption
-0,32%
CHARACTERISTICS
-0,33%
8,40%4,15% 4,15%
CONTACT
0,24%
GEOGRAPHIC DISTRIBUTIONRATING DISTRIBUTION
EVOLUTION & EXPOSURE
- The Fund may invest all of its net assets on money market
instruments and bonds issued by public or private entities rated
"Investment Grade" (with a minimum rating BBB-) and may invest up
to 50% max of net assets in "Not Rated" and speculative bonds ("Non-
Investment Grade").
- All bonds are denominated in Euro.
- The overall bond risk is being actively managed within a sensitivity
range between 0 and 3.
- Emphasis on (non-financial) corporate bonds.
SECTOR DISTRIBUTION
Adriaan Klop
He managed alternative investments at ABP Pension
Fund in Amsterdam from 2001. From 1991 to 2001
Adriaan worked for Banque CPR (an affiliate of Crédit
Agricole group) and its subsidiaries, where he headed
the bank’s European Bond portfolio. Before joining
CPR, Adriaan worked in Amsterdam for James Capel
(now HSBC Securities), as Head of Economic Research
from 1988 to 1991, and for Eduard de Graaff (part of
the Achmea Insurance Group) as a Fixed Income
Analyst from 1984 to 1988.
Morningstar Rating (3 years) :
Category : "EUR Corporate Bond - Short Term"
PERFORMANCE
1 month 3 Years
UCITS fund authorised to be offered in FRANCE and ITALY
Adriaan is independent
investment advisor of the
fund since april 2016. He was
Chief Investment Officer at
BGAM.
Before joining Bryan Garnier in 2006, Adriaan advised
institutional investors on asset allocation and
manager selection from 2003.
1 Year
Bryan Garnier Credit Fund gained 0.78% in December, ending the year 2016 with a performance of 4.15%. Since inception
(September 2011) the short duration fund has produced +27.38% cumulative return, which equates to 4.77% annualized
performance (Eonia 0.05%) with 2.18% volatility. The fund duration is 2.52 years and its average yield is 1.42% (-53bp from
November).
Slowing growth of the world economy, devaluation of the Chinese currency, commodity prices spiralling down and geopolitical
tensions counted among factors that caused credit spreads to widen in the first half of the year. However, stubbornly low inflation
coupled with anaemic growth, high government debt and still high unemployment in the Eurozone were behind further monetary
stimulus of the European Central Bank and caused interest rates on the highest quality government bonds in the EZ to fall deep into
negative territory. This vigorous approach of the ECB helped to counter the effect of rising rates in the US, but some spread widening
on peripheral EZ countries including Italy and Portugal could not be fully avoided. Credit risk as measured by the Crossover index
reached a high of nearly 500bp in the first half of the year. But the index ended 2016 much lower at 287bp, 26bp less than a year
before, on the back of some improved confidence in the economic outlook, led by the US and by rising equity and commodity
markets. The manager’s stance of staying long the credit curve within the confines of the fund’s limits and objectives, while only
partially hedging interest rate risk have paid off, has reinforced the fund's top position amongst peers.
At the end of the month, exposure to fixed income Investment Grade decreased by 3.6 points to 51.9%, High-Yield and Not Rated
Bonds increased by 3.9 points to 48.1%. Hybrid bonds exposure increased by 1.7 points to 11.6%. Cash exposure was 1,1%. The
interest rate hedge was reduced by 23.3 points to -12.5%.
In December, contributions to the performance from bond investments were as follows: Investment-Grade gained 0.40%, High-Yield
and Not Rated 0.56%. The hedge book contribution was -0.11%. Among individual bonds, the 5 main positive contributions to the
monthly performance were SALINI IMPREGILO at 9bp, LOUIS DREYFUS and TELECOM ITALIA at 8bp, FAURECIA and FIAT for 7bp.
There were no negative contributions.
The manager positions the fund in order to benefit from a scenario whereby interest rates stay low for a prolonged period in Europe.
The QE program of the ECB is benefitting credit and corporate bonds. The inclusion of corporate bonds in QE is underpinning the
attraction of Bryan Garnier Credit Fund in a negative government bond yield environment. Occasionally credit exposure is reduced
under adverse market conditions. Interest rate exposure is hedged by derivatives on expensive government bonds including those of
Germany. The duration of this (negative) exposure decreased by 0.47 years to -0.57; the weighted average yield of the underlying
government bonds of this position is -0.09% and therefore the hedge adds 0.09% to the fund yield. Duration of the bond portfolio
was reduced to 3.1 years; its average yield is 1.33%. Fund duration was slightly increased at 2.52 years. Fund yield is 1.42% (vs 1.95%
in November).
Bryan Garnier Credit Fund 0,78%
3 months YTD
Part B : 1 093.80 EUR
Part A : 1 273.77 EUR
Total Assets
Annualized Volatility
0%
20%
40%
60%
80%
100%
120%
Investment Grade Exposure Non-Investment Grade Excess Cash & Investment Funds
0% 5% 10% 15% 20%
Avg. Other Sectors
United States
Denmark
Netherlands
Spain
Czech
Portugal
France
Germany`
Italy
0% 20% 40%
HY & NR
BBB/BBB-
AAA/BBB+
0% 5% 10% 15% 20%
Avg. Other sectors
Telecommunication
Construction
Oil & Gas
Real Estate
Industrial Gds. & Serv.
Automobiles
Utilities
BRYAN GARNIER CREDIT FUND
Monthly Fund Report December 31st 2016
970
1020
1070
1120
1170
1220
1270
NAV Bryan Garnier Credit Fund
EONIA
10 days moving average