Longchamp Galileo Equity Income Fund

Longchamp Galileo Equity Income Fund Strategy Overview

The Longchamp Galileo Equity Income Fund (the « Sub-Fund » of the Longchamp Invest Fund) was designed to deliver an absolute return profile through the generation of an “alternative source of income”; all the more appealing in a low-yielding environment, especially in the fixed income space.

While its stated performance objective is to deliver an annualized return net of fees higher than that of EONIA capitalized +1% over the recommended investment period of 5 years minimum, the investment philosophy is routed  in the well documents put writing strategies. The strategy being deployed throughout multiple markets; it is expected to capture a larger number of arbitrage opportunities.

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 Sub-Fund is now listed on Euronext Fund Service Paris.

  • Discretionary allocation: portfolio management team builds a portfolio mainly comprised of long and short positions in put options using major world equity market indices as underlying assets
  • Strategy implementation takes into account the broader macro environment, however it remains focused on the generation of a “carry” (derived from attractive premiums) while maintaining a structural overlay to address global market drawdowns
  • Underlying equity indices are those of developed countries which share similar liquidity characteristics and exhibit an actively traded options market. Cash is mainly invested in French Government Bonds.

Performance as of 16/10/2019

NAVMTDYTDLTD
1,086.75€-0.44%8.63%8.68%
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
Investment Universe
  • Listed derivatives, mainly comprised of put options on developed countries’ equity indices that share similar liquidity characteristics and exhibit an actively traded options market
  • Cash mainly invested in French Government Bonds
Investment Process
  • Discretionary allocation fostering a “carry” generating engine derived from attractive “premium” levels
  • Portfolio mainly comprised of long and short put options
  • Strategy implementation takes into account the broader macro environment while remaining focused on the generation of a stable stream of returns (“carry”) and maintaining a structural overlay to address global market drawdowns
  • Global risk computed such as the VaR (Value at Risk) will not be higher than 3% of the Sub-Fund’s net assets (based on a confidence level of 99% and a 1 day holding period)

Fund Facts

Legal Structure:Sub-Fund of UCITS Fund
Umbrella Fund:Longchamp Invest
Fund Manager:Longchamp Asset Management SAS
Passporting:Approved in France and Italy
Base Currency:EUR
Other Currency Share Classes:N/A
Liquidity:Daily (every day that is a business day and where stocks markets are open in France)
Dealing Deadline (Subscription):03:00 pm French time 1 Business Day prior to the relevant Dealing Day
Dealing Deadline (Redemption):03:00 pm French time 1 Business Day prior to the relevant Dealing Day
Settlement Date (Subscription):Within 3 Business Days after the relevant Dealing Day
Settlement Date (Redemption):Within 3 Business Days after the relevant Dealing Day

Key Professionals

Sebastien Cabrol
Lead Portfolio Manager

Sebastien is Portfolio Manager and Head of Research at Longchamp AM. Sebastien is also lecturer at the Paris-Dauphine University. He has an extensive experience in derivatives markets and cross-assets strategies. Prior to joining Longchamp AM, Sebastien worked as a fund manager and financial engineer at Lyxor Asset Management, Société Générale Corporate & Investment Banking and Deutsche Bank. He was notably in charge of setting-up and managing Lyxor Asset Management’s volatility funds and developed several systematic and discretionary strategies based on derivatives and cross-assets analysis. Sebastien holds a PhD in Economics from Paris-Dauphine University. His PhD focused on the forecasting of economic and financial crises and statistical methods dedicated to global macro and tail-risk analysis.

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.

Risk Profile

An investment in the Longchamp Galileo Equity Income Fund may expose an investor to the following risks (further detailed in the  Sub-Fund’s prospectus):

  • Risk of capital loss
  • Risk associated with discretionary management
  • Volatility risk
  • Risk associated with the use of derivative instruments
  • Equity Risk
  • Currency risk
  • Interest rate risk
  • Credit risk
  • Counterparty risk
  • Risk associated with efficient management portfolio technique
  • Liquidity risk
  • Risk related to the management of securities lending and repurchase agreements

Fund Share Class Details

* Reference share classes used to report NAVs, Daily, MTD, YTD and LTD performances.
** Includes a maximum of 0.25% p.a. external operating fees (auditor, custodian, distribution, and lawyers). 

Overview

Longchamp Galileo Equity Income Fund Strategy Overview

The Longchamp Galileo Equity Income Fund (the « Sub-Fund » of the Longchamp Invest Fund) was designed to deliver an absolute return profile through the generation of an “alternative source of income”; all the more appealing in a low-yielding environment, especially in the fixed income space.

While its stated performance objective is to deliver an annualized return net of fees higher than that of EONIA capitalized +1% over the recommended investment period of 5 years minimum, the investment philosophy is routed  in the well documents put writing strategies. The strategy being deployed throughout multiple markets; it is expected to capture a larger number of arbitrage opportunities.

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 Sub-Fund is now listed on Euronext Fund Service Paris.

  • Discretionary allocation: portfolio management team builds a portfolio mainly comprised of long and short positions in put options using major world equity market indices as underlying assets
  • Strategy implementation takes into account the broader macro environment, however it remains focused on the generation of a “carry” (derived from attractive premiums) while maintaining a structural overlay to address global market drawdowns
  • Underlying equity indices are those of developed countries which share similar liquidity characteristics and exhibit an actively traded options market. Cash is mainly invested in French Government Bonds.
Performance

Performance as of 16/10/2019

NAVMTDYTDLTD
1,086.75€-0.44%8.63%8.68%
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
Investment Universe
  • Listed derivatives, mainly comprised of put options on developed countries’ equity indices that share similar liquidity characteristics and exhibit an actively traded options market
  • Cash mainly invested in French Government Bonds
Investment Process
  • Discretionary allocation fostering a “carry” generating engine derived from attractive “premium” levels
  • Portfolio mainly comprised of long and short put options
  • Strategy implementation takes into account the broader macro environment while remaining focused on the generation of a stable stream of returns (“carry”) and maintaining a structural overlay to address global market drawdowns
  • Global risk computed such as the VaR (Value at Risk) will not be higher than 3% of the Sub-Fund’s net assets (based on a confidence level of 99% and a 1 day holding period)
Fund Facts

Fund Facts

Legal Structure:Sub-Fund of UCITS Fund
Umbrella Fund:Longchamp Invest
Fund Manager:Longchamp Asset Management SAS
Passporting:Approved in France and Italy
Base Currency:EUR
Other Currency Share Classes:N/A
Liquidity:Daily (every day that is a business day and where stocks markets are open in France)
Dealing Deadline (Subscription):03:00 pm French time 1 Business Day prior to the relevant Dealing Day
Dealing Deadline (Redemption):03:00 pm French time 1 Business Day prior to the relevant Dealing Day
Settlement Date (Subscription):Within 3 Business Days after the relevant Dealing Day
Settlement Date (Redemption):Within 3 Business Days after the relevant Dealing Day
Key Professionals

Key Professionals

Sebastien Cabrol
Lead Portfolio Manager

Sebastien is Portfolio Manager and Head of Research at Longchamp AM. Sebastien is also lecturer at the Paris-Dauphine University. He has an extensive experience in derivatives markets and cross-assets strategies. Prior to joining Longchamp AM, Sebastien worked as a fund manager and financial engineer at Lyxor Asset Management, Société Générale Corporate & Investment Banking and Deutsche Bank. He was notably in charge of setting-up and managing Lyxor Asset Management’s volatility funds and developed several systematic and discretionary strategies based on derivatives and cross-assets analysis. Sebastien holds a PhD in Economics from Paris-Dauphine University. His PhD focused on the forecasting of economic and financial crises and statistical methods dedicated to global macro and tail-risk analysis.

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.

Risk Profile

Risk Profile

An investment in the Longchamp Galileo Equity Income Fund may expose an investor to the following risks (further detailed in the  Sub-Fund’s prospectus):

  • Risk of capital loss
  • Risk associated with discretionary management
  • Volatility risk
  • Risk associated with the use of derivative instruments
  • Equity Risk
  • Currency risk
  • Interest rate risk
  • Credit risk
  • Counterparty risk
  • Risk associated with efficient management portfolio technique
  • Liquidity risk
  • Risk related to the management of securities lending and repurchase agreements
Shares

Fund Share Class Details

* Reference share classes used to report NAVs, Daily, MTD, YTD and LTD performances.
** Includes a maximum of 0.25% p.a. external operating fees (auditor, custodian, distribution, and lawyers).