Update on... Echiquier Space - March 2026

Stephane Nières-Tavernier, Head of Technology and Fund Manager, Christophe Pouchoy, Fund Manager, and Alicia Daurignac, Analyst and Fund Manager, Echiquier Space, LFDE

We have been supporting the transformation of the space ecosystem with Echiquier Space, an international thematic fund, since 2021. This pioneering fund is currently invested mainly in aerospace and defence companies, tech companies – manufacturers of semiconductors, sensors, specialised instruments and software, etc. – and satellite communications companies. This conviction-based fund combines technological growth and active risk management to benefit from the structural growth of the space ecosystem. With the planned launch of Artemis II and SpaceX’s IPO by the summer, this theme is likely to remain in the spotlight and continue to attract investor interest.

OPERATIONS

Tactical operations

In the second half of 2025 and early 2026, we took profits on Kratos and US space pure players following sharp gains (September/October and January), including Rocket Lab, Blacksky and Planet Labs. We then strengthened our positions on those stocks again in November and December and February and March, once they had suffered profit-taking. We continued to strengthen our positions on space defence players exposed to the Golden Dome project in the United States, as well as their European competitors. We also strengthened our position on Gilat in electronic equipment and added STMicro, a Starlink and Amazon LEO supplier, to the portfolio. In the satellite communications segment, shaken by competition from Starlink, we adjusted the fund’s positioning by selling Iridium and initiating positions on SES, Globalstar, Echostar and AST Spacemobile. Finally, we invested in new Japanese satellite constellation operators.

Fundamentals

The sector’s bright outlook should be driven by various catalysts, from the growth of commercial applications to increased public spending on space exploration and defence. Defence remains a powerful growth driver for the ecosystem, and President Trump has recently announced plans to increase the military budget by 50% by 2027. The Ensuring American Space Superiority executive order, issued at the end of December, is a further positive signal for space exploration and defence. We have therefore increased our exposure to the defence sector from 20% at the end of 2024 (44% including companies deriving at least 10-15% of their revenue from defence) to 39% (and 65%). This has increased the weighting of industrial stocks to 61%.[1] Among tech stocks (21% of the fund), we have reduced the weighting of software and increased exposure to semiconductors, which are critical to the space ecosystem, as well as to technology equipment manufacturers.

INVESTMENT STRATEGY

Within a universe currently comprising more than 150 stocks, our strategy leverages our sector expertise to identify the most promising opportunities within the space ecosystem, resulting in a selection of around 30 convictions. We invest across all segments of the space ecosystem, favouring four types of players: those operating from space, on Earth, or between Earth and space, and those developing cross-cutting technologies. We have developed tools to identify new opportunities and compare their growth prospects and valuations. We believe that our positioning should enable us to capture the value creation associated with this revolution over the long term.

Disclaimers: These data, securities and opinions are provided for information purposes only and do not constitute an offer to buy or sell a security, investment advice or financial analysis. Past performance is not an indication of future performance. The fund is subject to capital loss risk, equity risk, currency risk, discretionary management risk, interest rate risk, risk associated with investing in derivative financial instruments and risk associated with emerging markets. Investors are reminded that the units/shares presented may not be marketed in their country of residence. For more information on its features, risks and fees, please read the regulatory documents available at www.lfde.com.

[1] Data as at 2 March 2026