The Longchamp Treasury Fund’s (the “Fund”) investment objective is to achieve a performance net of fees higher than that of its benchmark, EONIA (Euro Overnight Index Average) over an investment horizon of 1 month minimum.
To achieve its objective, the Fund implements an Asset Swap for 100% of the Fund’s net assets where a basket of international stocks listed in the Euro area is traded against an exposure to money market returns in the euro area (EONIA plus a spread adjustable depending on market and liquidity conditions). The Fund may also use efficient portfolio management techniques and trade asset swaps and / or collateralised loan asset operations involving a maximum of 100% of the Fund’s net assets.
As part of its investment strategy, the Fund invests in a basket of assets (consisting in particular of international equities listed in the euro area) that are used as counterparty to swaps. The swap structure allows the Fund to benefit from returns that are expected to exceed its benchmark. This excess performance is made possible through the counterparty’s incentive to offload a basket of equities in exchange for a return based on Euro area money market rates.
The Fund is now listed on Euronext Fund Service Paris.