AMC – Longchamp Hybrid Credit 2028

Strategy

Longchamp Hybrid Credit 2028, is a EUR fixed maturity fund which invests in a static portfolio of bonds. The “buy and hold approach” is implemented by investing at inception in a concentrated portfolio of carefully selected Corporate Hybrid Bonds

The Fund’s holdings will be Corporate Hybrid Securities issued by blue-chip European issuers :

  • Corporate Hybrid Debt is a segment of the credit market that currently offers extremely attractive risk-adjusted yields
  • The market is currently dislocated and offers one the best entry points ever with a combination of historically wide spreads and the highest EUR rates in over 10 years
  • Issuers include Investment Grade rated European National Champions such as EDF, Total Energies, Eni, Repsol, Veolia

Cash flows at the fund level will be progressively returned to Investors :

  • Revenues : Accumulated coupons will be returned yearly on the annual payment date
  • Capital : Upon each bond redemption, the capital will be returned on the capital redemption date
  • Over the last 6 months of 2028, the remaining portfolio of bonds with an expected maturity 2028 or longer, will be sold progressively for a full return of capital no later than December 2028

The Target total return for investors will be 6-7% per annum net of fees.

Longchamp has chosen to structure the fund as an Actively Managed Certificate (“AMC”), issued by BNP Paribas. Actively Managed Certificate constitutes an extremely efficient vehicle in terms of time to market and implementation costs.

Coming Soon…

Past performance is not an indicator of future performance. 

Details

Strategy
  • Hybrid Credit
Fixed-Term Fund
  • Final maturity on Dec 2028
  • Target Yield: 7-8%
  • Holdings: 9 securities
  • Portfolio defined at inception and static until redemption
Corporate Hybrids
  • Subordinated bonds sharing both debt and equity characteristics
  • Very Attractive spread and yield entry point
  • IG-rated names with appealing yields
  • Diversified universe of EUR-denominated bond
Rules and Fees
  • Low-cost solution
  • Liquidation of the fund at maturity
  • Secondary market based on portfolio NAV
  • No transaction costs
  • Management fee of 0.70% p.a.
Actively Managed Certificates (AMC)
  • Issuer : BNP Paribas
  • The fund structured as a security
  • Longchamp selects and purchases the portfolio
  • BNP holds the portfolio
  • Simple and efficient investment vehicle

Fund Facts

Fund Longchamp Hybrid Credit 2028
ISIN Code XS2123761327
Legal Structure AMC (Actively Managed Certificate)
Investment Manager Longchamp Asset Management SAS
Issuer BNP Paribas Issuance
Auditor PWC
Compliance Jornet Finance Consulting
Reference Currency EUR
Share Classes Distributing
Management Fees 0.70%
Target Return (Net of Fees) 6-7% p.a.
Redemption before Maturity One-month notice / 2% early redemption fee

Key Professionals

Jean Fau
Credit Fund Manager  

Jean has 25 years of experience in capital markets and joined Longchamp Asset Management in September 2019 to lead Credit Strategies and manage the Credit Value Fund.
His career started in 1994 at Goldman Sachs, taking various responsibilities in Convertible Bonds and Equity Derivatives, gaining close exposure to relative value and credit hedge funds. In 2003, Jean joined Susquehanna International as a Portfolio Manager, responsible for European Discretionary Investments across credit, convertible and event-driven strategies. In 2009 Jean left to launch Brennus Asset Management LLP, a London-based alternative investments manager, focused on convertible bonds and other hybrid credit instruments, using a mix of directional and relative value strategies. Before joining Longchamp Jean was a Partner and Senior Portfolio Manager at Chenavari Credit Partners from December 2014 until April 2018, where he ran High Yield, Financials and Convertible Bonds strategies across all mandates.
Jean holds a master’s degree in Business Administration from HEC Paris, France.

David Armstrong
Chief Investment Officer 

David is Chief Investment Officer at Longchamp Asset Management. Previously, he was a Managing Director at Morgan Stanley & Co. International Plc, acting as global head of the investment bank’s Funds and Fund Linked business. In particular, he was in charge of the FundLogic Alternatives Plc (UCITS) Platform and served as President of the French asset management company, FundLogic SAS. Before joining Morgan Stanley, David worked at Société Générale Corporate & Investment Banking in the Equity Derivatives division in Paris before moving to Milan to take the responsibility for the Italian Capital Markets, and then joining Société Générale’s New York office to head the Structured Products division for the Americas. David holds a master’s degree in Business Administration from EDHEC, Lille, France.

Lorenc Golemi
Head of Financial Engineering and Chief Risk Officer

Lorenc is the Chief Risk Officer at Longchamp AM. Before joining Longchamp AM, Lorenc worked in consultancy and advisory in investment banking and asset management. Previously he worked as Portfolio Manager, Risk Manager and Financial Engineer at UBS AM, CommerzBank and Dresdner Kleinwort Benson. He was in charge of systematic strategies and risk management of volatility and absolute return funds. Lorenc holds an Engineer degree in computer science and a master’s degree in applied mathematics.

Romain Baumé
Private Wealth Manager

Romain is a Private Wealth Manager at Longchamp AM. He is dedicated to developing wealth management mandates. Previously, Romain worked at Indosuez Wealth Management in the Advisory team. He managed cross-assets portfolios, developed derivatives solutions for professional clients and conducted investment committees. Romain holds a master’s degree in Corporate Finance from the Toulouse Business School.

Overview

Strategy

Longchamp Hybrid Credit 2028, is a EUR fixed maturity fund which invests in a static portfolio of bonds. The “buy and hold approach” is implemented by investing at inception in a concentrated portfolio of carefully selected Corporate Hybrid Bonds

The Fund’s holdings will be Corporate Hybrid Securities issued by blue-chip European issuers :

  • Corporate Hybrid Debt is a segment of the credit market that currently offers extremely attractive risk-adjusted yields
  • The market is currently dislocated and offers one the best entry points ever with a combination of historically wide spreads and the highest EUR rates in over 10 years
  • Issuers include Investment Grade rated European National Champions such as EDF, Total Energies, Eni, Repsol, Veolia

Cash flows at the fund level will be progressively returned to Investors :

  • Revenues : Accumulated coupons will be returned yearly on the annual payment date
  • Capital : Upon each bond redemption, the capital will be returned on the capital redemption date
  • Over the last 6 months of 2028, the remaining portfolio of bonds with an expected maturity 2028 or longer, will be sold progressively for a full return of capital no later than December 2028

The Target total return for investors will be 6-7% per annum net of fees.

Longchamp has chosen to structure the fund as an Actively Managed Certificate (“AMC”), issued by BNP Paribas. Actively Managed Certificate constitutes an extremely efficient vehicle in terms of time to market and implementation costs.

Performance

Coming Soon…

Past performance is not an indicator of future performance. 

Details

Details

Strategy
  • Hybrid Credit
Fixed-Term Fund
  • Final maturity on Dec 2028
  • Target Yield: 7-8%
  • Holdings: 9 securities
  • Portfolio defined at inception and static until redemption
Corporate Hybrids
  • Subordinated bonds sharing both debt and equity characteristics
  • Very Attractive spread and yield entry point
  • IG-rated names with appealing yields
  • Diversified universe of EUR-denominated bond
Rules and Fees
  • Low-cost solution
  • Liquidation of the fund at maturity
  • Secondary market based on portfolio NAV
  • No transaction costs
  • Management fee of 0.70% p.a.
Actively Managed Certificates (AMC)
  • Issuer : BNP Paribas
  • The fund structured as a security
  • Longchamp selects and purchases the portfolio
  • BNP holds the portfolio
  • Simple and efficient investment vehicle
Fund Facts

Fund Facts

Fund Longchamp Hybrid Credit 2028
ISIN Code XS2123761327
Legal Structure AMC (Actively Managed Certificate)
Investment Manager Longchamp Asset Management SAS
Issuer BNP Paribas Issuance
Auditor PWC
Compliance Jornet Finance Consulting
Reference Currency EUR
Share Classes Distributing
Management Fees 0.70%
Target Return (Net of Fees) 6-7% p.a.
Redemption before Maturity One-month notice / 2% early redemption fee
Key Professionals

Key Professionals

Jean Fau
Credit Fund Manager  

Jean has 25 years of experience in capital markets and joined Longchamp Asset Management in September 2019 to lead Credit Strategies and manage the Credit Value Fund.
His career started in 1994 at Goldman Sachs, taking various responsibilities in Convertible Bonds and Equity Derivatives, gaining close exposure to relative value and credit hedge funds. In 2003, Jean joined Susquehanna International as a Portfolio Manager, responsible for European Discretionary Investments across credit, convertible and event-driven strategies. In 2009 Jean left to launch Brennus Asset Management LLP, a London-based alternative investments manager, focused on convertible bonds and other hybrid credit instruments, using a mix of directional and relative value strategies. Before joining Longchamp Jean was a Partner and Senior Portfolio Manager at Chenavari Credit Partners from December 2014 until April 2018, where he ran High Yield, Financials and Convertible Bonds strategies across all mandates.
Jean holds a master’s degree in Business Administration from HEC Paris, France.

David Armstrong
Chief Investment Officer 

David is Chief Investment Officer at Longchamp Asset Management. Previously, he was a Managing Director at Morgan Stanley & Co. International Plc, acting as global head of the investment bank’s Funds and Fund Linked business. In particular, he was in charge of the FundLogic Alternatives Plc (UCITS) Platform and served as President of the French asset management company, FundLogic SAS. Before joining Morgan Stanley, David worked at Société Générale Corporate & Investment Banking in the Equity Derivatives division in Paris before moving to Milan to take the responsibility for the Italian Capital Markets, and then joining Société Générale’s New York office to head the Structured Products division for the Americas. David holds a master’s degree in Business Administration from EDHEC, Lille, France.

Lorenc Golemi
Head of Financial Engineering and Chief Risk Officer

Lorenc is the Chief Risk Officer at Longchamp AM. Before joining Longchamp AM, Lorenc worked in consultancy and advisory in investment banking and asset management. Previously he worked as Portfolio Manager, Risk Manager and Financial Engineer at UBS AM, CommerzBank and Dresdner Kleinwort Benson. He was in charge of systematic strategies and risk management of volatility and absolute return funds. Lorenc holds an Engineer degree in computer science and a master’s degree in applied mathematics.

Romain Baumé
Private Wealth Manager

Romain is a Private Wealth Manager at Longchamp AM. He is dedicated to developing wealth management mandates. Previously, Romain worked at Indosuez Wealth Management in the Advisory team. He managed cross-assets portfolios, developed derivatives solutions for professional clients and conducted investment committees. Romain holds a master’s degree in Corporate Finance from the Toulouse Business School.

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