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Prospectus Changes: What you need to know?

Main changes are detailed below. We encourage you to read the full notices for an exhaustivity of the changes. Changes may be different depending on the funds. This page is for support only and doesn't replace the notice to shareholders that shall be sent to your final clients.

1/ Investment in unlisted securities

Carmignac Patrimoine/Carmignac Portfolio Patrimoine and Carmignac Investissement/Carmignac Portfolio Investissement are adding an additional lever to fulfil their mandate by being able to invest in unlisted companies which fully match our investment criteria and process and which are aiming to apply for listing (IPO) within 1-3 years with the following limits:

  • Carmignac Investissement/Carmignac Portfolio Investissement: maximum 10% of its assets

  • Carmignac Patrimoine/Carmignac Portfolio Patrimoine: maximum 5% of its assets

The decision has been made in the continuity of our investment philosophy for the following reasons:

  • Adapt to market evolutions: in recent years, high growth profile companies, especially the most innovative ones, have been able to finance themselves while remaining privately-held, and hence have tended to delay their IPOs for longer. Therefore, value creation has moved at an earlier stage of the company’s development, before they go public.

  • Allow for additional value creation for our clients by making available an asset class often reserved to institutional investors like we did with derivatives in 2003, mainland Chinese markets in 2014 or CLOs in 2015. All these developments happened while putting risk management at the cornerstone of our investment style and process.

  • Leverage on our know-how and expertise: several members of our global equity team have in-depth experience gained at leading private equity firms globally. In addition, our proprietary research of listed companies already embeds a deep analysis of all competitors in each given sector – whether listed or unlisted– so most of the unlisted players in one of the invested theme or subsector are already part of our research and analysis.

2/ Integration of sustainable investment objectives

In line with our mission to create value for our clients and positive outcomes for the society and the environment, we strive to continuously further develop our ESG capabilities. As such, along with the strengthening of our in-house ESG resources, we have been able to move one step further and increase the number of funds which are now aligned to Article 8 and Article 9 requirements.

Carmignac Portfolio Long-Short European Equities and Carmignac Portfolio Global Bond are moving from Article 6 to Article 8.

Our Article 6 minimum practices already encompass a high level of commitment to ESG integration and active stewardship to which we have complemented the following processes to categorise our funds as Article 8.

Complementary to our financial analysis, we also analyse issuers and companies on the basis of an extra-financial analysis so as to assess their environmental, social and governance behaviour. We are committed to cover at least 90% of our investment universe on that respect, as well as to a minimum reduction of their respective investment universe by 20% based on ESG criteria.

Such integration of extra-financial criteria when selecting equities and bonds is complemented by our engagement policy by which we strive to improve ESG practices of companies we invest in via active dialogue.

Carmignac Investissement, Carmignac Portfolio Investissement, Carmignac Investissement Latitude, Carmignac Emergents, Carmignac Portfolio Emergents, Carmignac Portfolio Grande Europe and Carmignac Portfolio Grandchildren are moving from Article 8 to Article 9.

Fully aligned with the acknowledgment that sustainable development is no longer an investment theme by itself but is becoming a core topic of tomorrow’s world, we have been enhancing our investment objectives and approach. All the above funds now formally aim at outperforming their respective indicators over the recommended horizon through investments in sustainable and impactful companies.

To this end, we have built an overarching outcomes framework that requires that a minimum of 50% of each of these portfolios’ AUM must include companies that derive more than 50% of their revenues from business activities aligned with 9 investable United Nations’ Sustainable Development Goals.

3/ New regulatory guidelines for performance fees and some benchmarks changes

The European Securities and Markets Authority (ESMA) has introduced new guidelines for performance fees that will be mandatory from the 1st of January 2022. These new rules will notably prevent a Fund to charge a performance fee until it has totally recovered any underperformance over the last 5 years (usually referred as high water mark or claw back mechanism).

In the past, Carmignac had chosen a unique framework that has featured no high-water mark or claw back mechanism, but a positive condition for both absolute and relative performance as an evidence of the dual mandate of our flexible investment strategies. This unique model has now to be adapted and aligned to the new regulatory requirements.

In any case, this new framework does not question or preclude our commitment to the performance fee model. This model is part of Carmignac’s DNA and definitely the best one when it comes to alignment of interest between investors, Carmignac and Portfolio Managers. Also, our key driver for the implementation of the new scheme was that the investment approach of each fund should remain the same and the philosophy should be kept intact.

  • For all Funds, we have then extended the reference period for performance fees from one to five years.

  • For some funds, we have also adapted the performance fee rate as well as the reference indicators to achieve more consistency and better reflect the characteristics and historical allocations of the investment strategies.

  • For the funds with an absolute return objective, like the Long-Short range, we have dropped the reference indicator and introduced a 5-year high water mark.

These evolutions will be implemented on the 1st of January 2022 and will ensure compliance with the new ESMA guidelines.

4/ New offering in share classes

The new regulatory framework on performance fees is also an opportunity for Carmignac to bring to the market a more comprehensive and clearer range of share classes, adapted to the various investors’ profiles and preferences. For some funds we will now propose “twin” share classes, i.e. shares with and without performance fees the former being offered at a lower fixed management fee.

This new offering will notably be implemented with some pricing adaptations, share class renaming and a new suite of shares that will be launched on the 1st of January 2022.

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.

This material may not be reproduced, in whole or in part, without prior authorisation from the Management Company. This material does not constitute a subscription offer, nor does it constitute investment advice. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice. This material has been provided to you for informational purposes only and may not be relied upon by you in evaluating the merits of investing in any securities or interests referred to herein or for any other purposes. The information contained in this material may be partial information and may be modified without prior notice. They are expressed as of the date of writing and are derived from proprietary and non-proprietary sources deemed by Carmignac to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Carmignac, its officers, employees or agents.

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.

Reference to certain securities and financial instruments is for illustrative purposes to highlight stocks that are or have been included in the portfolios of funds in the Carmignac range. This is not intended to promote direct investment in those instruments, nor does it constitute investment advice. The Management Company is not subject to prohibition on trading in these instruments prior to issuing any communication. The portfolios of Carmignac funds may change without previous notice. The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager.

Morningstar Rating™ : © Morningstar, Inc. All Rights Reserved. The information contained herein: is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Access to the Funds may be subject to restrictions regarding certain persons or countries. This material is not directed to any person in any jurisdiction where (by reason of that person’s nationality, residence or otherwise) the material or availability of this material is prohibited. Persons in respect of whom such prohibitions apply must not access this material. Taxation depends on the situation of the individual. The Funds are not registered for retail distribution in Asia, in Japan, in North America, nor are they registered in South America. Carmignac Funds are registered in Singapore as restricted foreign scheme (for professional clients only). The Funds have not been registered under the US Securities Act of 1933. The Funds may not be offered or sold, directly or indirectly, for the benefit or on behalf of a «U.S. person», according to the definition of the US Regulation S and FATCA. The risks, fees and ongoing charges are described in the KID (Key Information Document). The KID must be made available to the subscriber prior to subscription. The subscriber must read the KID. Investors may lose some or all their capital, as the capital in the funds are not guaranteed. The Funds present a risk of loss of capital.

The Funds’ prospectus, KIDs, NAVs and annual reports are available at www.carmignac.com, or upon request to the Management Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. The French investment funds (fonds communs de placement or FCP) are common funds in contractual form conforming to the UCITS or AIFM Directive under French law.

  • In France, Luxembourg, Sweden: The risks, fees and ongoing charges are described in the KID (Key Information Document). The KID must be made available to the subscriber prior to subscription. The subscriber must read the KID. Investors may lose some or all their capital, as the capital in the funds are not guaranteed. The Funds present a risk of loss of capital. The Funds’ prospectus, KIDs, NAV and annual reports are available at www.carmignac.com, or upon request to the Management.

  • In the United Kingdom: the Funds’ respective prospectuses, KIIDs and annual reports are available at www.carmignac.co.uk, or upon request to the Management Company, or for the French Funds, at the offices of the Facilities Agent at BNP PARIBAS SECURITIES SERVICES, operating through its branch in London: 55 Moorgate, London EC2R. 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.

  • In Switzerland: the prospectus, KIDs and annual report are available at www.carmignac.ch, or through our representative in Switzerland, CACEIS (Switzerland), S.A., Route de Signy 35, CH-1260 Nyon. The paying agent is CACEIS Bank, Montrouge, Nyon Branch / Switzerland, Route de Signy 35, 1260 Nyon.

The Management Company can cease promotion in your country anytime. Investors have access to a summary of their rights in English on the following links: UK ; Switzerland ; France ; Luxembourg ; Sweden.