Frequently Asked Questions

The risk profile is a scale applied to all funds. It helps investors understand the level of risk they will be exposed to before they decide to invest their savings.

For example, investing in equities is generally rated as more risky than investing in bonds (debt instruments issued by countries or companies). This is because share prices tend to fluctuate more than bond prices, and they can go down as well as up. Funds that invest in equities alone therefore have a higher risk profile.

The risk profile of a fund is calculated on the basis of its performance over the past five years. Risk profiles range from 1 (lowest risk, but not risk free) to 7 (highest risk). The higher the risk profile, the greater the potential return.

At Carmignac, you can find the risk indicator in the fund pages and in documents such as the KID/KIID (Key Information Document/ Key Investor Information Document).

The KID/KIID presents essential information on each fund (risk indicator, investment objective, fees, etc.) to help investors make an informed decision.

The net asset value (NAV) represents the purchase (or sale) price of a unit in a collective investment scheme (CIS), commonly known as a "fund".

The NAV is calculated by dividing the total net assets of the fund (total amount of positions held by the fund on the financial markets less certain fees) by the number of units.

At Carmignac, the net asset value is calculated every working day (excluding weekends and days when the French stock market is closed). It is available on the website from 11 a.m. and can be received by e-mail by subscribing to our alert.

Each investor can obtain, upon request, a total or partial redemption of his investments.

Subscription and redemption requests are centralised every day (except weekends and days when the French stock market is closed) before 6 p.m. CET/CEST and are executed on the first business day following the net asset value (NAV) of the previous day.

YTD is short for “year-to-date” – in other words, since the beginning of the year. This term is mainly used to refer to a fund’s performance since 1 January of the current year.

At Carmignac, you can find this term in the section on fund performance.

The investment horizon is the minimum length of time you are planning to keep a financial product. How long this is depends on your plans for the capital you are investing.

Term, potential return and risk are all interlinked: if your investment horizon is very short, it is a good idea to pick a low-risk investment even though the returns may be smaller. Conversely, if you can invest your savings over the medium or long term, you can opt for a multi-year investment offering higher potential returns.

At Carmignac, you can find the minimum recommended investment horizon in the fund pages and in documents such as the KID / KIID (Key Information Document / Key Investor Information Document).

The KID / KIID presents essential information on each fund (risk indicator, investment objective, fees, etc.) to help investors make an informed decision.

Active management entails selecting the financial assets (equities, bonds, currencies, etc.) that are expected to generate the best performance in relative terms, and buying them at what is deemed to be the most opportune time. By contrast, passive management involves seeking to replicate a stock market index.

At Carmignac, our investment team follows an active investment approach based on four pillars:
• independent, proprietary research
• synergy of ideas
• conviction management
• risk management

The FCP (fonds commun de placement – French common fund) and the SICAV (société d'investissement à capital variable – open-ended investment company) are types of undertaking for collective investment. FCPs and SICAVs both allow investors to pool their capital and have it invested on the financial markets by a specialist company. They function in exactly the same way, but have different legal structures:

• FCPs are owned collectively and they issue units. The unitholder (i.e. the person investing their savings) delegates fund management to a company. This management company acts on behalf and in the sole interests of unitholders.

• SICAVs are open-ended investment companies that issue shares as and when subscription requests are received. Investors in a SICAV are effectively shareholders, and they can express their views on the company’s management at general meetings.

At Carmignac, our SICAV is called “Carmignac Portfolio”. Every fund registered as part of the SICAV bears this name. Examples: “Carmignac Portfolio Grande Europe” and “Carmignac Portfolio Flexible Bond”. View the full range: our Funds.

For Carmignac, the choice of legal structure (SICAV or FCP) has no impact on our funds’ investment objective or management process.

A fund that adopts a responsible investment approach is one that selects companies and public entities (governments or public services) whose business model and/or development strategy helps them to have a favourable impact on the environment and society.

Responsible investment has three major pillars: environment, social and governance (ESG) themes. Each theme is vast in scope, encompassing matters such as companies’ waste handling and water consumption (E), diversity and health and safety in the workplace (S), and bribery and corruption, the independence of boards of directors and director remuneration (G). At Carmignac, as active and independent portfolio managers, our mandate is to effectively manage our clients’ savings over the long term. Investing responsibly is intrinsically linked to this aim.

At Carmignac, our aim is to increase the value of our clients’ capital and to have a positive impact on society and the environment. We have been investing responsibly for over 30 years, and 100% of our funds incorporate ESG analysis into their investment process, i.e. we exclude the tobacco, controversial weapons, coal, and adult entertainment sectors from our portfolios.

As active and independent portfolio managers, our mandate is to effectively manage our clients’ savings over the long-term, and investing responsibly is intrinsically linked to this aim.

We develop our own convictions through proprietary quantitative analysis, drawing on the independent perspectives of our portfolio managers and analysts with sector-specific expertise. We incorporate non-financial analysis into our investment process because it is an essential part of mitigating risks and identifying investment opportunities; we make decisions based on our convictions and long-term vision, even if this means going against the consensus view; we engage in dialogue with the companies in which we invest to encourage them to adopt best practices and a more sustainable profitability model; and we work with industry heavyweights to raise awareness and contribute to the fight against climate change and in favour of social progress.

Yes. Carmignac funds incorporate environmental, social and governance (ESG) criteria into their investment process and comply with Carmignac’s responsible investment policy. Some of our funds have been awarded labels by independent bodies in recognition of our responsible finance approach to managing our investments.
All our funds are categorised on the basis of three articles drawn up by the European Commission (SFDR): • Article 6 – Funds that assess the risks linked to ESG criteria prior to the investment phase but do not have a sustainability objective.
• Article 8 – Funds that give weight to environmental and social criteria during the investment decision-making process (exclusion of harmful sectors, positive filtering of companies that have a positive impact and/or commitment to lowering the carbon footprint).
• Article 9 – Funds that place a quantifiable sustainable objective at the heart of their investment decisions.