BNP Paribas launches Transatlantic Target Premium UCITS

BNP Paribas has launched THEAM Quant Transatlantic Target Premium UCITS, an income fund that uses options strategies on European and US equities to generate yield and seek capital growth. The fund is part of the bank’s THEAM Quant range and is managed by BNP Paribas Asset Management Europe under a UCITS structure.

The strategy uses a dynamic put-writing approach, selling put options on stocks across two major equity regions. Systematic rules adjust the fund’s exposure over time. The strategy also includes risk-reduction features and a dedicated tail-hedging overlay intended to limit losses during large market moves while collecting option premia as a source of income.

The fund is classified as Article 6 under the EU Sustainable Finance Disclosure Regulation and carries a minimum recommended investment horizon of four years. Operating within a UCITS wrapper provides the regulatory protections and reporting standards associated with that framework.

Vincent Berard, Head of Funds Solutions for THEAM Quant, described the strategy as ‘extending BNP Paribas’ quantitative income approach across global equity markets.’ Roberto Bartolomei, Head of Global Distribution, highlighted rising client demand for yield solutions and spoke of a ‘growing appetite for resilient, diversified yield solutions.’

BNP Paribas says the Transatlantic Target Premium strategy is aimed at investors looking for income linked to equity markets rather than traditional interest-bearing instruments. The firm recommends a multi-year horizon to give the strategy time to implement its systematic rules and risk overlays. Market interest in alternatives to conventional fixed income has increased as investors seek different sources of yield.