Longchamp Absolute Return Fund

Longchamp Absolute Return Strategy Overview

The goal of the Longchamp Absolute Return Fund (the « Fund ») is to seek to deliver an annualized performance net of fees higher than that of EONIA capitalized +1% over the recommended investment period of 5 years minimum, through the selection of diversified funds mainly exhibiting an absolute return objective.

Longchamp Asset Management (“Longchamp AM”) is an employee-owned asset management company founded in 2013, authorized and regulated by the Autorité des Marchés Financiers (GP-13000009).

The Fund is now listed on Euronext Fund Service Paris.

  • Seeks to deliver a steady stream of uncorrelated returns (compared to that of traditional asset classes) through a highly convicted allocation and a dynamic portfolio management
  • Diversification in terms of strategies (countries and/or sectors) as well as asset classes through allocations in UCITS funds, most of which have an absolute return focus
  • Fund selection based on quantitative and qualitative analysis as well as a thorough due diligence process
  • Historical annualized volatility capped at 6% maximum

Performance as of 09/08/2019

NAVMTDYTDLTD
1,174.82€-1.61%7.84%17.48%
Loading

Past performance is not an indicator of future performance.

Details

Objective
  • Deliver an annualized performance net of fees higher than that of EONIA capitalized +1% over the recommended investment period of 5 years minimum, through the selection of diversified funds mainly exhibiting an absolute return objective
Investment Universe
  • The Fund may hold up to 100% of its net assets in “Equity”, “Flexible” or “Money Market” UCITS funds. Portfolio management team will mostly seek to allocate to absolute return funds:
    • Equity, fixed income, convertible arbitrage, event driven, CTAs and global macros
  • Additionally, the portfolio management team may, to support their investment thesis and from time to time, hold positions in:
    • Exchange Traded Funds (ETFs) for no more than 20% of the Fund’s net asset value
    • Equity shares of companies listed in countries part of the OECD, EMTNs and BMTNs
  • According to market conditions, the Fund may hold up to 100% of its net asset value in debt securities or money market instruments
Investment Process
  • Investment decisions are discretionary and rely mainly on the combination of:
    • « Top down » analysis
    • « Bottom-up » analysis
Allocation Decision
  • Allocations seek to be more strategic rather than tactical; changes are expected to be conducted granularly
  • Decision to allocate to each fund will mostly depend on return expectations considering their risk profile and risks associated with the position
  • Further details on the Fund’s allocation guidelines are available in the prospectus

Fund Facts

Legal Structure:Fonds Commun de Placement (« FCP ») UCITS français
Umbrella Fund:N/A
Fund Manager:Longchamp Asset Management SAS
Passporting:Approved in France
Base Currency:EUR
Other Currency Share Classes:N/A
Liquidity:Weekly (every Friday that is a Business Day)
Dealing Deadline (Subscription):12:00 midday French time 1 Business Day prior to the relevant Dealing Day
Dealing Deadline (Redemption):12:00 midday French time 1 Business Day prior to the relevant Dealing Day
Settlement Date (Subscription): Business Days after the relevant Dealing Day
Settlement Date (Redemption): Business Days after the relevant Dealing Day

Key Professionals

David Armstrong
President – Managing Director

David is Chief Executive Officer at Longchamp Asset Management, which he founded in 2013. Previously, he was a Managing Director at Morgan Stanley & Co. International Plc, heading the investment bank’s Funds and Fund Linked business globally. In particular, he was in charge of the FundLogic UCITS Platform and served as President of the French asset management company, FundLogic SAS. Prior to joining Morgan Stanley, David had spent fourteen years within the Global Equity and Derivatives Solutions division at Société Générale. After joining the group in Paris, David moved to Milan to head the global capital markets operations including all Equity and Fixed Income activities. He also chaired the Italian alternative asset management company, Lyxor SGR. Thereafter, he moved to New York to head up Structured Products Sales for the Americas. David holds a master’s degree in Business Administration from EDHEC, Lille, France.

Isabelle Mérou
Portfolio Manager

Isabelle is Junior Porfolio Manager at Longchamp Asset Management. In particular, she is dedicated to fund structuration, multi-management funds and wealth management mandates.
Previously, Isabelle worked at Société Générale Bank and Trust (SGBT) in the Cross Assets OTC Derivatives dealing desk. She worked on several projects including portfolio review, restructuration, strategy implementation and development as well as regulatory issues. Before joining SGBT, Isabelle worked at Société Générale Corporate and Investment Banking (SGCIB) as Foreign Exchange Derivatives and Structured Products Sales.
Isabelle holds an Engineering Diploma in Financial Engineering from the Léonard de Vinci Graduate School of Engineering.

Risk Profile

An investment in the Longchamp Absolute Return Fund may expose an investor to the following risks (further detailed in the Fund’s prospectus):

  • Capital loss risk
  • Risk associated with discretionary management
  • Equity Risk
  • Risk associated with investments in equities of small cap companies
  • Risk associated with investments in emerging markets
  • Interest rate risk
  • Credit risk
  • Risk associated with high-yield bond investment
  • Currency risk

Fund Share Class Details

* Reference share classes used to report NAVs, Daily, MTD, YTD and LTD performances.
** Includes a maximum of 0.20% p.a. administration fees covering for service providers (custodian, administrator, audit, KIIDs, etc).

Overview

Longchamp Absolute Return Strategy Overview

The goal of the Longchamp Absolute Return Fund (the « Fund ») is to seek to deliver an annualized performance net of fees higher than that of EONIA capitalized +1% over the recommended investment period of 5 years minimum, through the selection of diversified funds mainly exhibiting an absolute return objective.

Longchamp Asset Management (“Longchamp AM”) is an employee-owned asset management company founded in 2013, authorized and regulated by the Autorité des Marchés Financiers (GP-13000009).

The Fund is now listed on Euronext Fund Service Paris.

  • Seeks to deliver a steady stream of uncorrelated returns (compared to that of traditional asset classes) through a highly convicted allocation and a dynamic portfolio management
  • Diversification in terms of strategies (countries and/or sectors) as well as asset classes through allocations in UCITS funds, most of which have an absolute return focus
  • Fund selection based on quantitative and qualitative analysis as well as a thorough due diligence process
  • Historical annualized volatility capped at 6% maximum
Performance

Performance as of 09/08/2019

NAVMTDYTDLTD
1,174.82€-1.61%7.84%17.48%
Loading

Past performance is not an indicator of future performance.

Details

Details

Objective
  • Deliver an annualized performance net of fees higher than that of EONIA capitalized +1% over the recommended investment period of 5 years minimum, through the selection of diversified funds mainly exhibiting an absolute return objective
Investment Universe
  • The Fund may hold up to 100% of its net assets in “Equity”, “Flexible” or “Money Market” UCITS funds. Portfolio management team will mostly seek to allocate to absolute return funds:
    • Equity, fixed income, convertible arbitrage, event driven, CTAs and global macros
  • Additionally, the portfolio management team may, to support their investment thesis and from time to time, hold positions in:
    • Exchange Traded Funds (ETFs) for no more than 20% of the Fund’s net asset value
    • Equity shares of companies listed in countries part of the OECD, EMTNs and BMTNs
  • According to market conditions, the Fund may hold up to 100% of its net asset value in debt securities or money market instruments
Investment Process
  • Investment decisions are discretionary and rely mainly on the combination of:
    • « Top down » analysis
    • « Bottom-up » analysis
Allocation Decision
  • Allocations seek to be more strategic rather than tactical; changes are expected to be conducted granularly
  • Decision to allocate to each fund will mostly depend on return expectations considering their risk profile and risks associated with the position
  • Further details on the Fund’s allocation guidelines are available in the prospectus
Fund Facts

Fund Facts

Legal Structure:Fonds Commun de Placement (« FCP ») UCITS français
Umbrella Fund:N/A
Fund Manager:Longchamp Asset Management SAS
Passporting:Approved in France
Base Currency:EUR
Other Currency Share Classes:N/A
Liquidity:Weekly (every Friday that is a Business Day)
Dealing Deadline (Subscription):12:00 midday French time 1 Business Day prior to the relevant Dealing Day
Dealing Deadline (Redemption):12:00 midday French time 1 Business Day prior to the relevant Dealing Day
Settlement Date (Subscription): Business Days after the relevant Dealing Day
Settlement Date (Redemption): Business Days after the relevant Dealing Day
Key Professionals

Key Professionals

David Armstrong
President – Managing Director

David is Chief Executive Officer at Longchamp Asset Management, which he founded in 2013. Previously, he was a Managing Director at Morgan Stanley & Co. International Plc, heading the investment bank’s Funds and Fund Linked business globally. In particular, he was in charge of the FundLogic UCITS Platform and served as President of the French asset management company, FundLogic SAS. Prior to joining Morgan Stanley, David had spent fourteen years within the Global Equity and Derivatives Solutions division at Société Générale. After joining the group in Paris, David moved to Milan to head the global capital markets operations including all Equity and Fixed Income activities. He also chaired the Italian alternative asset management company, Lyxor SGR. Thereafter, he moved to New York to head up Structured Products Sales for the Americas. David holds a master’s degree in Business Administration from EDHEC, Lille, France.

Isabelle Mérou
Portfolio Manager

Isabelle is Junior Porfolio Manager at Longchamp Asset Management. In particular, she is dedicated to fund structuration, multi-management funds and wealth management mandates.
Previously, Isabelle worked at Société Générale Bank and Trust (SGBT) in the Cross Assets OTC Derivatives dealing desk. She worked on several projects including portfolio review, restructuration, strategy implementation and development as well as regulatory issues. Before joining SGBT, Isabelle worked at Société Générale Corporate and Investment Banking (SGCIB) as Foreign Exchange Derivatives and Structured Products Sales.
Isabelle holds an Engineering Diploma in Financial Engineering from the Léonard de Vinci Graduate School of Engineering.

Risk Profile

Risk Profile

An investment in the Longchamp Absolute Return Fund may expose an investor to the following risks (further detailed in the Fund’s prospectus):

  • Capital loss risk
  • Risk associated with discretionary management
  • Equity Risk
  • Risk associated with investments in equities of small cap companies
  • Risk associated with investments in emerging markets
  • Interest rate risk
  • Credit risk
  • Risk associated with high-yield bond investment
  • Currency risk
Shares

Fund Share Class Details

* Reference share classes used to report NAVs, Daily, MTD, YTD and LTD performances.
** Includes a maximum of 0.20% p.a. administration fees covering for service providers (custodian, administrator, audit, KIIDs, etc).