Changes to certain Sub-Funds - Carmignac Profil Reactif 75

(ISIN: FR0010148999)

Published on
February 9, 2024
Read time
5 minute(s) read

9 February 2024, Paris

Merger of the fund Carmignac Profil Reactif 75 with Carmignac Multi Expertise (formerly Carmignac Profil Reactif 50)

Letter to holders of the fund
Carmignac Profil Reactif 75

Dear Sir/Madam,

We would like to thank you for the trust you have placed in us. We are honoured to count you among the holders of A EUR Acc units in the Carmignac Profil Réactif 75 fund (the “Fund”).

1. What changes are being made to the fund?

We are writing to inform you of an important upcoming change: Carmignac Gestion has decided to reshuffle its Profil Réactif range. Carmignac Profil Réactif 75 fund, a French FCP, will be merged into the Carmignac Profil Réactif 50 fund, another French FCP that will simultaneously be renamed Carmignac Multi Expertise.

Carmignac Profil Réactif 75’s assets under management were just EUR 71 million at 21 December 2023, and the prospects for developing the Fund in its current form now appear limited.

The two funds are managed by the same fund management team within the Carmignac group.

The main difference between the funds in management terms lies in their equity market exposure, as this can be up to 75% for Carmignac Profil Réactif 75 but is capped at 65% (or 50% until the merger date) for Carmignac Multi Expertise.

As part of the merger, you will exchange your units in the “merging fund,” Carmignac Profil Réactif 75, for units in the “receiving fund,” Carmignac Multi Expertise.

2. When will this change take effect?

The AMF approved this merger on 6 February 2024. It will take place on 18 March 2024. Exchange ratios will be based on the net asset values1 of 15/03/2024, published on 18/03/2024.

Please note that for this procedure to run smoothly, you will not be able to subscribe for new units or ask to redeem existing units in the Carmignac Profil Réactif 75 fund after 8 March 2024.

The manager of the Merging Fund will ensure that the exposure levels stipulated in legal documentation are respected until the merger is complete.

As the NAV of Carmignac Profil Réactif 75 is calculated every day, the last NAV at which subscriptions or redemptions may be executed before the merger will be that of 8 March 2024.

If you do not agree to these changes, you have until 8 March 2024 to redeem your units free of charge, apart from any taxes or levies.

3. What impact will these changes have on the risk/return profile of your investment?

The merger will take place on 18 March 2024.

  • Change in risk/return profile: No
  • Increase in risk profile: No
  • Potential increase in fees: No
  • Extent of change in risk/return profile: Very significant

4. How does this change affect your tax situation?

Fund unitholders may contact their usual advisor to discuss the consequences of the change in the light of their individual circumstances and tax residence.

For persons resident in France for tax purposes:

For natural persons: This procedure will be subject to the deferred tax plan (article 150-0 B of the French General Tax Code). Deferment means that, for tax purposes, this merger will be treated as an interim transaction that, for the year in which the exchange is made, is not taken into account when calculating income tax. Capital gains yet to be realised on the date of the exchange will have their tax deferred until the shares received through the merger are sold, provided that the amount of any balance is no more than 10% of the exchange value of shares received.

For legal entities subject to corporation tax or income tax when they are taxed under a BIC (industrial and commercial profits) or BA (agricultural profits) real earnings scheme: This procedure will be subject to the deferred tax plan (article 38-5 B of the French General Tax Code). Provided that the amount of any balance is no more than 10% of the exchange ratio of the shares received, only the portion of the capital gain corresponding to the balance paid is taxable immediately; the result of the exchange (excluding the balance) will be included in the results for the year in which the shares received in the exchange are sold.
However, for legal entities subject to corporation tax, neutralisation of the exchange loses some of its effect due to the mandatory valuation of units/shares on the basis of their net asset value at the end of the financial year, in accordance with article 209 OA of the French General Tax Code.

5. What are the main differences between the fund in which you currently hold units and the future fund?

The main differences between the Carmignac Profil Réactif 75 and Carmignac Multi Expertise funds at 18/03/2024 are:

Investment objective*The fund aims to generate a positive annual return while keeping annual volatility below that of its reference indicator. The fund is managed on a discretionary basis by the portfolio manager, who pursues an active asset allocation policy, mainly involving funds invested in international equities and bonds.The fund targets a performance, net of fees, above that of its reference indicator over a recommended investment period at least three years. It is managed on a discretionary basis by the portfolio manager, who pursues an active asset allocation policy, mainly involving funds invested in international equities and bonds.
Recommended investment horizon5 years3 years
Strategy50% MSCI AC WORLD NR USD converted into euro + 50% ICE BofA Global Broad Market Index EUR hdg.- 40% MSCI AC WORLD NR (USD) (MSCI global international equities index) converted into euro; - 40% ICE BofA Global Government Index with net coupons reinvested (USD unhedged) (world bond index) converted into euro; and -20% compounded €STR.
Incorporation of non-financial criteria into the management methodIt complies with Article 6 on sustainability-related disclosures in the financial services sector (SFDR). It complies with Article 8 on sustainability-related disclosures in the financial services sector (SFDR).
Change in exposure to the different types of risk*Exposure or investment brackets: - Equity exposure [0%: 75%]; - Bond investments: [0%: 100%]Exposure or investment brackets: -Equity exposure [0%: 65%]; - Bond investments: [30%: 110%]. Contribution to the risk profile compared with the previous situation: - ; +
Management and other administration and operating fees (at 30/11/23)A EUR Acc units: 2.86% A EUR Acc shares: 2.69%
NameCarmignac Profil Réactif 75Carmignac Multi Expertise
ISINA EUR Acc: FR0010148999A EUR Acc: FR0010149203
*The AMF approved these changes on 6 February 2024.

6. Key points to remember

This document is important and requires your attention. If in doubt, please contact your usual advisor.

Please note the importance of reading the Key Information Document (KID). Your usual advisor is available should you require any further information.

The merger report, prospectus and key information documents, as well as the latest annual and any semi-annual reports, are available in French, English, German, Italian, Spanish and Dutch free of charge from the registered office of the Fund management company: CARMIGNAC GESTION, 24 Place Vendôme, 75001 Paris, France. They are also available at www.carmignac.com, and from the management company’s representative in Switzerland: CACEIS (Switzerland) SA, Route de Signy 35, CH-1260 Nyon. The Swiss Paying Agent is CACEIS Bank, Paris, Nyon/Switzerland branch, Route de Signy 35, 1260 Nyon.

The net asset values are published on www.carmignac.com and www.fundinfo.com.

Yours faithfully,

Christophe Peronin
Deputy Managing Director

Appendix 1 – Example of how the exchange ratio is calculated

The exchange ratio used for the merger, expressed to three decimal places, will be as follows for each unit class:

Net asset value2 per A EUR Acc unit of the Carmignac Profil Réactif 75 fund
Net asset value of one A EUR Acc unit of the Carmignac Multi Expertise fund

Thus calculated, and with units of the Carmignac Multi Expertise (formerly Carmignac Profil Réactif 50) fund being expressed to three decimal places, no balance will be payable to holders (no fractions).

Example of how the exchange ratio is calculated using the net asset values of A EUR Acc units in Carmignac Multi Expertise (formerly Carmignac Profil Réactif 50), if the merger had taken place on 8 January 2024 (here, the net asset values used are those of 05/01/2024):

A person holding 1 A EUR Acc unit in Carmignac Profil Réactif 75, valued at €246.39, when 1 A EUR Acc unit in Carmignac Profil Réactif 50 (before it becomes Carmignac Multi Expertise) is valued at €189.47. Someone who had €246.39 representing 1 A EUR Acc unit of the Carmignac Profil Réactif 75 fund will still have €246.39 after the merger, but this will now represent 1.300 A EUR Acc units of Carmignac Multi Expertise (i.e. 239.41/189.47 = 1.30041695).

1The net asset value (NAV) is equal to the price for buying or selling one unit of the FCP (fonds commun de placement) or one share of the SICAV (société d’investissement à capital variable).
2The net asset value (NAV) is equal to the price for buying or selling one unit of the FCP (fonds commun de placement).