Carmignac Credit Opportunities (CCO) is an alternative multi asset credit fund investing in CLO’s, distressed and restructuring debt, leveraged loans and high yield credit. Our ICAV strategy is a fundamental unlevered all-weather approach, focusing on instruments aiming at capturing the best risk-reward, across the entire global credit spectrum, with a long European bias.
This first short note focuses on our approach to investing in CLOs.
Harnessing the full potential of the CLO market…
Within our alternative strategy, we have the ability to invest across the entire CLO capital structure, from AAA to equity. Our investments are predominantly in European CLOs, providing both sectorial and geographical diversification while showing strong resilience. Our allocation to CLOs is very flexible, as we are under no obligation to invest in this asset class, we believe to provide one of the best ways to have optimal exposure to CLOs. Our goal is to calibrate our CLO exposure based on the risk reward we see in the market. In practice, since the creation of Carmignac Credit Opportunities (15/12/2022), the allocation has evolved from a peak exposure to 43% (2022) to a low of 16% (currently).
At this point, from a risk-reward perspective we prefer to take advantage of the leeway to reduce our exposure to avoid taking too much spread duration risk. We are currently comfortable with an exposure close to our low as CLO markets have tightened alongside global credit markets and thus have become more expensive.
Nevertheless, we don't necessarily want to reduce our exposure any further, for the following reasons:
- Carry is still attractive compared to other credit segment.
- High quality CLOs are structurally able to cope with some increase in corporate default rates.
Unlike most specialized players focused on a single segment of the CLO market, we are not compelled to remain permanently invested, nor are we limited to invest in specific tranches. This flexibility allows us to deploy our full firepower when opportunities are compelling, always targeting the best risk-adjusted returns. Our agnostic approach preserves valuable optionality with a view to ensure both resilience and long-term performance.
… Thanks to strong expertise in CLO…
The strategy is overseen by an experienced and fully integrated management team that has been active in the market since before the Global Financial Crisis, successfully navigating multiple credit cycles.
For over a decade, Carmignac has been managing on average more than €2 billion in CLO investments, consistently delivering a strong track record. Since inception in 2015, the pocket has been led by the same Portfolio Manager, Florian Viros, who brings more than 20 years of experience in the CLO market, having previously held positions, as loan investor, structurer and buyer of CLOs, at institutions such as Goldman Sachs and Citigroup. Florian was notably involved in the structuring of the very first post crisis “2.0” CLO in 2013.
…And privileged access to the CLO market
As an asset class, CLOs are attractive, but to invest successfully, a deep expertise, an efficient platform and market access are required. At Carmignac, Florian has built a best-in-class CLO investing platform, with cumulative investments made to date across ca. 750 different tranches since he joined in 2015. To make the most of this credit segment, Carmignac has the following strengths:
- Size: with €2bn invested across our credit fund range, we are among the largest investor in Continental Europe in mezzanine tranches of European CLO, we have the scale to invest in all segments, both in the primary and in the secondary market.
- Market access: our extensive network of relationships in the market built over many years provides us with unique insights, early looks and access to investment opportunities not broadly shown in the market.
- CLO generalist: we stand apart from players focusing on a single segment as we monitor and invest in the entire CLO capital structure, enabling us to consistently identify the most attractive risk-reward opportunities across all tranches.
- Ability to improve terms: thanks to our flexibility to invest across a CLO’s capital structure and our product expertise, we constantly push to improve documentation standards to reduce our risk.
- Experience: the investment process that Florian has developed and improved over the years has delivered consistent, strong performance and has been a significant contributor of alpha for our alternative multi-asset credit fund, , Carmignac Credit Opportunities and our other fixed income funds.
Our second short note, will be dedicated to our approach to Distressed debt.
Carmignac Credit Opportunities: Monthly performance (B USD Acc Hdg)
| 2025 | 1.55% | 3.01% | -1.04% | -0.42% | 1.43% | 1.97% | 1.78% | 0.98% | 9.57% | ||||
| 2024 | 1.06% | 1.11% | -0.09% | 2.22% | 1.74% | 0.05% | 1.04% | 0.27% | 0.35% | 0.35% | 0.45% | 1.07% | 10.03% |
| 2023 | 3.67% | 0.60% | -1.16% | 1.98% | 0.42% | 1.63% | 1.37% | 0.87% | 0.48% | 0.03% | 1.75% | 3.25% | 15.83% |
| 2022 | - | - | - | - | - | - | - | - | - | - | - | 1.95% | 1.95% |
Carmignac Credit Opportunities
Carmignac Credit Opportunities B USD Acc Hdg
- Recommended minimum investment horizon
- 3 years
- Risk indicator*
- 4/7
- SFDR - Fund Classification**
- Article 6
*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **The Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 is a European regulation that requires asset managers to classify their funds as either 'Article 8' funds, which promote environmental and social characteristics, 'Article 9' funds, which make sustainable investments with measurable objectives, or 'Article 6' funds, which do not necessarily have a sustainability objective. For more information please refer to https://eur-lex.europa.eu/eli/reg/2019/2088/oj.
Main risks of the fund
Fees
- Entry costs
- We do not charge an entry fee.
- Exit costs
- We do not charge an exit fee for this product.
- Management fees and other administrative or operating costs
- 1.13% of the value of your investment per year. This estimate is based on actual costs over the past year.
- Performance fees
- 20.00% max. of the outperformance once performance since the start of the year exceeds that of the reference indicator and if no past underperformance still needs to be offset. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years, or since the product creation if it is less than 5 years.
- Transaction Cost
- 1.04% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.
Performance
| Carmignac Credit Opportunities | 2.0 | 15.8 | 10.0 | 9.6 |
| Carmignac Credit Opportunities | + 12.0 % | - | + 14.0 % |
Source: Carmignac at 29 Aug 2025.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).
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Marketing communication. Please refer to the KID/KIID, prospectus of the fund before making any final investment decisions. This document is intended for professional clients.
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Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
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In the United Kingdom: the Funds’ respective prospectuses, KIIDs and annual reports are available at www.carmignac.com/en-gb, or upon request to the Management Company, or for the French Funds, at the offices of the acilities Agent, Carmignac UK Ltd, 2 Carlton House Terrace, London, SW1Y 5AF. This document was prepared by Carmignac Gestion, Carmignac Gestion Luxembourg or Carmignac UK Ltd. FP Carmignac ICVC (the “Company”) is an Investment Company with variable capital incorporated in England and Wales under registered number 839620 and is authorised by the FCA with effect from 4 April 2019 and launched on 15 May 2019. FundRock Partners Limited is the Authorised Corporate Director (the “ACD”) of the Company and is authorised and regulated by the FCA. Registered Office: Hamilton Centre, Rodney Way, Chelmsford, Essex, CM1 3BY, UK; Registered in England and Wales with number 4162989. Carmignac Gestion Luxembourg SA has been appointed as the Investment Manager and distributor in respect of the Company. Carmignac UK Ltd (Registered in England and Wales with number 14162894) has been appointed as a sub-Investment Manager of the Company and is authorised and regulated by the Financial Conduct Authority with FRN:984288.
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For Carmignac Portfolio Long-Short European Equities: Carmignac Gestion Luxembourg SA in its capacity as the Management Company for Carmignac Portfolio, has delegated the investment management of this Sub-Fund to White Creek Capital LLP (Registered in England and Wales with number OCC447169) from 2nd May 2024. White Creek Capital LLP is authorised and regulated by the Financial Conduct Authority with FRN : 998349.
Carmignac Private Evergreen refers to the Private Evergreen sub-fund of the SICAV Carmignac S.A. SICAV – PART II UCI, registered with the Luxembourg RCS under number B285278.