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BNP Paribas 
BNP Paribas has enhanced its THEAM Quant - Europe Target Premium fund for continental European investors across the UK, Switzerland, Germany, Italy, France, Spain, and Benelux.

Launched in 2019, the fund sought to generate income in bullish, moderately bearish, and certain volatile markets by implementing a dynamic option strategy (put-writing) on the EURO STOXX 50® Index, the firm said in a statement. However, the strategy could suffer significant drawdowns in certain abrupt equity downturns, depending on how these scenarios develop.

The revamped strategy specifically aims at mitigating worst-case scenarios such as the Covid-related market gap, while still keeping the strategy’s attractiveness during positive scenarios, the firm continued. 

It has been enhanced with a risk reduction approach, implemented via a partial delta hedging mechanism within the put-writing strategy, the firm said. 

Revision of this strategy coincides with the THEAM Quant funds team bolstering its sales and distribution capabilities across continental Europe in Germany, Switzerland, France, and Italy.

Vincent Berard, head of product strategy for BNP Paribas Global Markets' THEAM Quant funds range, said: “The fund is a remarkably interesting solution in the current market context, as demonstrated by its performance over the past year.” 

“Traditional income has come under heavy pressure during this period, and our Europe target premium strategy serves as a useful tool to replace income-like products for European investors who require high recurrent income, as well as growth, in an environment where high inflation is still far from being matched by fixed income yield,” he continued.