AMC – Longchamp Hybrid Credit 2028
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Strategy Overview
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.
Funds Facts
Legal Structure:
AMC (Actively Managed Certificate)
Investment Manager:
Longchamp Asset Management SAS
Issuer:
BNP Paribas Issuance
ISIN Code:
XS2123761327
Auditor:
PWC
Compliance:
Jornet Finance Consulting
Base Currency:
EUR
Share class:
Distributing
Management Fees:
0.70%
Target Return (Net of Fees):
6-7% p.a.
Redemption before Maturity
One-month notice / 2% early redemption fee
XS2123761327
Performance
XS2123761327
Performance as of
NAV
€
YTD
0
MTD
0
3 YEARS
-
LTD
0
Coming Soon…
Past performance is not an indicator of future performance.
Informations
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
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
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.
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.