Flash Note
Carmignac launches its third target maturity Fund
Carmignac Credit 2029
- Published
Three years after the creation of our first target maturity bond fund, we are now launching Carmignac Credit 2029 so that investors can benefit from high yields on credit markets.
Favourable conditions
After a particularly turbulent year for bond markets and more than a decade of very low and even negative interest rates, the horizon has cleared for the asset class. The rise in interest rates, brought about by restrictive monetary policies introduced to tackle rampant inflation, now offers investors more attractive returns.
With market conditions still uncertain, a buy-and-hold strategy that combines visibility, diversification and selectivity may be an appropriate option.
Key features of Carmignac Credit 2029
Carmignac Credit 2029 follows a buy-and-hold strategy on global credit markets. With a careful selection of issuers, a target performance objective and predetermined end date1, Carmignac Credit 2029 gives investors visibility over their investment and diversifies the risks to which they are exposed.
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A vast investment universeCarmignac Credit 2029 may invest in both developed and emerging markets, in securities with diverse risk/return profiles, to build a diversified and selective portfolio with an average investment grade2 rating.
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A target performance objective
The Fund targets an annualised performance, net of management fees, of more than 4.22% for A EUR Acc and A EUR Ydis units between its inception on 20/10/2023 and maturity on 28/02/20291.
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Risks that diminish over time
In addition to systematic hedging of currency risk and to the portfolio’s diversification, the very nature of the Fund allows to anticipate a diminution of interest rate and credit risks as the end date approaches.
The objective does not constitute a promise of return or performance, the performance is not guaranteed.
Credit market expertise
The Fund benefits from the proven expertise of its management team, which already looks after two target maturity Funds launched in 2020 and 2022, as well as our Carmignac Portfolio Credit flexible credit strategy, launched in July 2017. Our experts have shown their ability to create value in different market conditions.
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Citywire “Gold” rating
Carmignac is ranked Gold in Citywire’s “Bonds – Euro Corporates” category for its risk-adjusted return across the whole category over the 30/06/2016 – 30/06/20233 period.
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EUR 10.2 billion
Credit assets under management at Carmignac4.
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Expertise reflected in a flexible strategy
Carmignac Portfolio Credit is in the top percentile of its Morningstar category for its performance since inception5.
1Please refer to the Fund prospectus for more information on the management objective. Under no circumstances does this objective constitute a guarantee of Fund yield or performance. The Fund’s performance is not guaranteed. The Fund incurs a risk of loss of capital.
2The portfolio’s average rating will be BBB- or higher (investment grade), or the equivalent. An investment grade rating indicates the high standing of issuers held in the portfolio.
3Source and Copyright: Citywire. Citywire Fund Manager Ratings and Citywire Rankings belong to Citywire Financial Publishers Ltd (“Citywire”) and © Citywire 2023. All rights reserved.
4Including non-sovereign debt securities, across all Carmignac portfolios, as at 29/09/2023.
5Carmignac Portfolio Credit is a sub-fund of the Luxembourg SICAV Carmignac Portfolio managed by Pierre Verlé and Alexandre Deneuville, members of the Carmignac credit team and co-managers of the Carmignac Credit 2029 Fund alongside Florian Viros. Source: Carmignac, Morningstar, 29/09/2023. Morningstar category: EUR Flexible Bond. For A EUR Acc units. Past performance is not an indication of future results. Performance is shown net of fees (excluding any entry charges applied by the distributor) Reference to a ranking or price does not guarantee the future ranking or price of these funds or the Management Company. Morningstar Rating™: © 2023 Morningstar, Inc. All rights reserved. The information in this document: -belongs to Morningstar and/or its content providers; may not be reproduced or distributed; carries no guarantee that it is reliable, exhaustive or relevant. Neither Morningstar nor its content providers are responsible for any damage or loss resulting from the use of this information.
Carmignac Credit 2029 A EUR Acc
Recommended minimum investment horizon
Lower risk Higher risk
CREDIT: Credit risk is the risk that the issuer may default.
INTEREST RATE: Interest rate risk results in a decline in the net asset value in the event of changes in interest rates.
LIQUIDITY: Temporary market distortions may have an impact on the pricing conditions under which the Fund might be caused to liquidate, initiate or modify its positions.
DISCRETIONARY MANAGEMENT: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.
The Fund presents a risk of loss of capital.
Carmignac Credit 2027 A EUR Acc
Recommended minimum investment horizon
Lower risk Higher risk
CREDIT: Credit risk is the risk that the issuer may default.
INTEREST RATE: Interest rate risk results in a decline in the net asset value in the event of changes in interest rates.
LIQUIDITY: Temporary market distortions may have an impact on the pricing conditions under which the Fund might be caused to liquidate, initiate or modify its positions.
DISCRETIONARY MANAGEMENT: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.
The Fund presents a risk of loss of capital.
Carmignac Credit 2025 A EUR Acc
Recommended minimum investment horizon
Lower risk Higher risk
CREDIT: Credit risk is the risk that the issuer may default.
INTEREST RATE: Interest rate risk results in a decline in the net asset value in the event of changes in interest rates.
LIQUIDITY: Temporary market distortions may have an impact on the pricing conditions under which the Fund might be caused to liquidate, initiate or modify its positions.
DISCRETIONARY MANAGEMENT: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.
The Fund presents a risk of loss of capital.
Carmignac Portfolio Credit A EUR Acc
Recommended minimum investment horizon
Lower risk Higher risk
CREDIT: Credit risk is the risk that the issuer may default.
INTEREST RATE: Interest rate risk results in a decline in the net asset value in the event of changes in interest rates.
LIQUIDITY: Temporary market distortions may have an impact on the pricing conditions under which the Fund might be caused to liquidate, initiate or modify its positions
DISCRETIONARY MANAGEMENT: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.
The Fund presents a risk of loss of capital.
Please refer to the Fund’s prospectus to view the exhaustive list of risks.