Shareholder Information

Amendments to the prospectus of “Carmignac Portfolio”

10.03.2021

ISIN: ( SEE LIST BELOW )

Notice to Shareholders
10 March 2021, Luxembourg


1. INTRODUCTION

We would like to thank you for the trust you have placed in us. We are honored to count you among the Shareholders of “Carmignac Portfolio” (the “Fund”). We would like to hereby inform you of the following changes to the Fund prospectus dated 10 MARCH 2021, as resolved by the Board of Directors after due consideration. These amendments have entered into force on 10 MARCH 2021, except if otherwise indicated below.

Please kindly note that this notice has been sent to several Shareholders of the Fund whereas you may be impacted only in case that you have chosen to invest in Shares of one or several Sub-Funds or Share Classes subject to any changes, as described below.

All capitalized terms used but not defined herein shall have the meaning ascribed to them in the Prospectus.


2. NAME CHANGES

The Board of Directors has resolves to change the names of the following Sub-Funds:

Carmignac Portfolio Unconstrained Global Bond
Carmignac Portfolio Unconstrained Credit
Carmignac Portfolio Unconstrained EM Debt
Carmignac Portfolio Unconstrained Euro Fixed Income

The new names for these Sub-Funds are as follows:

  • Current name



    Carmignac Portfolio Unconstrained Global Bond

    Carmignac Portfolio Unconstrained Credit

    Carmignac Portfolio Unconstrained EM Debt

    Carmignac Portfolio Unconstrained Euro Fixed Income

  • New name



    Carmignac Portfolio Global Bond

    Carmignac Portfolio Credit

    Carmignac Portfolio EM Debt

    Carmignac Portfolio Flexible Bond

These changes are motivated by the fact that the names have been considered too long by our investors as well as out technical and commercial partners.

These changes will not impact the investors. These changes do not signify any changes to investment objectives, investment strategies, risks or fees of the Sub-Funds.

This change will become effective on 10 MARCH 2021.


3. CHANGES ON RECOMMENDED MINIMUM INVESTMENT PERIOD

The Board of Directors has resolved to change the recommended minimum investment period of the following Sub-Funds:

Carmignac Portfolio Unconstrained Global Bond
Carmignac Portfolio Unconstrained Credit

The new recommended minimum investment periods are changed from 2 to 3 years as follows:


  • Sub-Fund



    Carmignac Portfolio Unconstrained Global Bond

    Carmignac Portfolio Unconstrained Credit

  • Current recommended minimum investment period (years)



    2




    2

  • New recommended minimum investment period (years)



    3




    3

The changes reflect the changes to the global investment environment. The lower interest rates have led to an increased duration risk of bonds globally and wider potential fluctuations in returns that may result in an increased average annual risk. This may lead to abnormally low returns for fixed income portfolios throughout the investment period, hence generating comparable risk-adjusted fixed Income performance may take more time compared to previous decades. The recommended minimum investment period 3 years already applied for the sub-funds “Carmignac Portfolio Unconstrained EM Debt” and “Carmignac Portfolio Unconstrained Euro Fixed Income” and the modifications above will provide now more consistency throughout the fixed income sub-fund range.

These changes will not impact the investors. These changes do not signify any changes to investment objectives, investment strategies, risks or fees of the Sub-Funds.

This change will become effective on 10 MARCH 2021.


4. CHANGE TO SUSTAINABLE OBJECTIVE

The Board of Directors has resolved to modify the investment objective of the Sub-Fund:

Carmignac Portfolio Unconstrained EM Debt (later: Carmignac Portfolio EM Debt)

The Sub-fund, while continuing to pursue its investments in Emerging market debt and encompass Environmental characteristics, will assume a sustainable objective (ESG) which is defined as follows:

This Sub-Fund has a sustainable objective in accordance with article 9 of the Sustainable Finance Disclosure Regulation (“SFDR”) to compose the portfolio respecting the following portfolio composition rules for sovereign debt investments:

  • 60% have a sustainability score of 3 or higher in the scoring system (details below)
  • 90% have a sustainability score of 2.6 or higher in the scoring system
  • Average exposure weighted sustainability score is above 3

By investing in assets issued by countries with high sustainability scores in accordance with the binding portfolio composition rules above, the Sub-fund achieves its objective of investing in sustainable sovereign debt issuers.

For the calculation above, the Sub-fund uses a proprietary ESG scoring system for Sovereign bonds to identify the ESG characteristics of each country in its investment universe. These are rated from 1 to 5 whereby 1 is the lowest score, 5 is the highest score and 3 is the neutral point.

The Sub-Fund continues to implement its total return approach striving to deliver sustainable positive returns with attractive Sharpe ratio whatever the market environment over the investment horizon of 3 years. This total return mindset allows to participate in rising markets, while implementing a defensive approach, by hedging the portfolio to market risks, during declining market expectations.

The changes to the investment strategy are reflected in the Risk profile which remains unchanged. There are no changes to investment manager, the benchmark or the fees of the Sub-Fund.

The changes will take place after one (1) month notice period on 15 April 2021.

Shareholders, who do not accept this modification, have a right to redeem their shares free of charge within thirty (30) days following the publication of this notice.

***

A new version of the prospectus dated 10 MARCH 2021 has been established to reflect these modifications.

The prospectus dated 10 MARCH 2021 and the amended Key Investor Information Documents of the relevant Sub-funds are available free of charge at the registered office of the Fund and on internet at www.carmignac.com.

If you have any questions about the content of this letter, please contact your financial advisor. If you are a distribution partner of Carmignac and have any related inquiries from your clients, please contact your local Professional Client representative.

Yours faithfully,

Eric HELDERLE
Director


ISINs:

Item 2:
LU0336083497, LU1299302098, LU0807690168, LU0807689822, LU1299301876, LU1748451231, LU0807690085, LU1299302254, LU0992630243, LU0992630326, LU0992630599, LU0992630755, LU0992630912, LU2278973172, LU1792392216, LU1623762769, LU0992630839, LU0553413385, LU1623762843, LU2020612490, LU1623763064, LU1623762926, LU1932489690, LU2020612730, LU2020612904, LU1623763148, LU2020612813, LU1623763221, LU1623763494, LU2277146382, LU1623763734, LU0336084032, LU1299302684, LU0992631050, LU0807689665, LU0807689749, LU0992631217, LU0992631308.

Item 3:
LU0336083497, LU1299302098, LU0807690168, LU0807689822, LU1299301876, LU1748451231, LU0807690085, LU1299302254, LU0992630243, LU0992630326, LU0992630599, LU0992630755, LU0992630912, LU2278973172, LU1792392216, LU1623762769, LU0992630839, LU0553413385, LU1623762843, LU2020612490, LU1623763064, LU1623762926, LU1932489690, LU2020612730, LU2020612904, LU1623763148, LU2020612813.

Item 4:
LU1623763221, LU1623763494, LU2277146382, LU1623763734