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SGAM Alternative Investments (SGAM AI) announces the launch on Euronext Paris of two new ETFs (Exchange Traded Funds), which complete the range of structured ETFs of SGAM ETF.
Designed to obtain a reverse exposure to the variation of the CAC 40® index (“bear strategy”), they are admitted for listing on the active ETFs compartment of Euronext’s NextTrack segment.
- SGAM ETF Bear CAC 40 offers a reverse exposure up to 100% to the CAC 40® Total Return index, enhanced by a monetary return,
- SGAM ETF XBear CAC 40 offers a reverse exposure up to 200% to the CAC 40® Total Return index, enhanced by a monetary return.
The reverse exposure to the index is variable and can be modified at the end of each quarter with 7 day prior notice. Based on fundamental and quantitative analysis, a Management Committee composed of fund managers and analysts of SGAM AI anticipate the upcoming trend and volatility to issue signals. These signals are used to reset the reverse exposure of the product if necessary. At the launch date, the reverse exposure to the index is fixed at 75% for SGAM ETF Bear CAC 40 and at 175% for SGAM ETF XBear CAC 40.
According to the exposure to the index, the ETF performance will be enhanced by a money market return which can reach 2 times the no risk interest rate EONIA for SGAM ETF Bear, and 3 times EONIA for SGAM ETF XBear.
SGAM ETF Bear and SGAM ETF XBear are intended for institutional investors who do not wish to use futures to set up a bear strategy or to hedge a portfolio. They also allow the implementation of a long-short arbitration strategy between an equity portfolio and the CAC 40® index, in order to only extract the outperformance from the portfolio, independent of the direction of the market.
The investment in SGAM ETF Bear CAC 40 and SGAM ETF XBear CAC 40 offers reduced costs as the funds do not charge any entry or exit fees.
Structured ETFs are as easy to trade as shares since their exposure to index is known at all times and their net asset value is calculated and communicated continuously.
SGAM AI’s structured exchange-traded funds combine the benefits of structured management with the transparency of continuously quoted ETFs. Based on an actively managed exposure to the index, they provide a cushion (i.e. partial capital protection), leverage or a reverse exposure to the index, depending on their “Flexible”, “Leveraged” or “Bear or XBear” profile.
