Paris-based Dauphine Asset Management, which was granted a license by French financial authority AMF last 4 December, has launched its first fund on 28 February 2018, InvestmentEurope can reveal.
The vehicle, branded Dauphine Megatrends and domiciled in France, is a fund of funds exposed to four global megatrends identified by the manager : natural resources, globalisation, technology disruption, ageing.
Between 10% and 40% of the fund’s net assets will have permanent exposure to each of the four megatrends and up to 10% for each sub-theme within them.
Dauphine AM’s first strategy seeks to outperform a composite benchmark – 80% MSCI World Daily Net Return + 20% ML EMU Broad Market 1-3 Yrs – over a recommended period of more than five years.
The FoF will select funds (UCIs and AIFs) by thematic categories via a thorough quantitative and qualitative analysis of the vehicles and asset managers running them. The asset allocation will be determined by a macro-economic market analysis and evolution expectations from Dauphine AM.
According to fund literature, Dauphine Megatrends will be exposed from 60% to 100% of its net assets to global equity markets with two constraints : up to 10% of the portfolio can be invested in small caps and exposure to emerging market equities is capped to 30%.
The fund’s exposure to money markets and bond markets can go up to 40% of its net assets, with a maximum of 10% in high yield securities. CoCos funds can also be selected by the team.
Up to 5% of the fund’s net assets may be invested in commodity futures indices through external UCIs or alternative investment funds.
