Paris-based boutique Longchamp Asset Management has soft-launched a France-domiciled income equity fund on 3 November 2016, the Longchamp Galileo Equity Income Fund, InvestmentEurope can reveal.
The strategy is a sub-fund of the Longchamp Invest Ucits fund, which also welcomed the Longchamp Global Macro Fund on 13 September 2016.
According to fund literature, the Longchamp Galileo Equity Income Fund seeks to deliver a net annualised performance higher than that of Eonia capitalised +1% over a 5-year period through long and short positions in put options using major world equity market indices as underlying assets.
The selection process of options and underlying assets relies on instruments’ price levels as well as on trading signals.
Indices selected as underlying assets will be those of global equity markets of developed countries, which Longchamp AM believes benefit from significant liquidity (OECD countries, Hong Kong and Singapore) and exhibit an active option market.
The Longchamp Galileo Equity Income Fund will be managed by Sebastien Cabrol, lead portfolio manager and head of Research at Longchamp AM, and David Armstrong, CEO and managing director of Longchamp AM.
Longchamp AM has been established in 2013.