Financial terminology

  • 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.

  • 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.

  • 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

Carmignac and its offering

  • Carmignac is an independent and entrepreneurial company. It was founded in 1989 and is now one of Europe’s leading asset managers.

    Active management of our clients’ savings is our vocation.
    To help our clients meet their long-term savings goals, we apply a conviction management style embodied by our limited range of investment strategies (our funds).

    Conviction management at Carmignac:
    • An investment team comprising 50 experts in the equities and bond markets with various nationalities and specialisms
    • Independent, proprietary research
    • A collaborative culture of debate, on-site work and internal research
    • In-person company visits to assess the decisions made and analyse the hidden risks
    • The courage to follow and apply our convictions
    • Transparency and accountability in relation to investment decisions

  • None of Carmignac’s funds are guaranteed, so there is always a risk of capital loss.

  • At Carmignac, we inform all investors in each of our funds of:
    • The ten largest positions each month
    • All positions every quarter

  • Carmignac private banking clients can access their account in a dedicated online area by logging on here at any time.

    As a Carmignac private banking client, you also receive a quarterly portfolio statement (you can choose to receive statements on a monthly, quarterly, semi-annual or annual basis).

    Our discretionary management clients receive a management report every quarter.

    If you need to, you can also contact our dedicated private banking services for assistance.

  • Since 1989, Carmignac has consistently provided guidance to clients on their financial investments and in achieving their goals.

    Investing with Carmignac private banking offers a number of advantages:

    Investing with a specialist. Managing people’s savings on the international financial markets is at the heart of what we do. When you invest your money with Carmignac, you benefit from the expertise of our management teams.

    Investing with a strong and independent partner. Founded over 30 years ago, Carmignac is a family company owned by its employees, and one of Europe’s leading asset managers. Being independent affords us the freedom to carry out market analysis and the courage to serve our clients by following our convictions.

    Benefiting from a fundamental approach to responsible investment. Our responsible investment approach gives us an in-depth understanding of a company’s real potential, helping us to make the best investment decisions for our clients.

    Knowledge of the investments. We guarantee transparency and accountability in relation to our investment decisions. We publish all of our funds’ investments on our website every quarter, so everyone has access to this information.

    Access to a clear and simple fund range. Our limited number of investment strategies allows each of our clients to built the portfolio best suited to their needs.

    Access to a dedicated portfolio manager. When you invest with Carmignac private banking, you receive long-term support. Your portfolio manager is available to help you find the investment solution best suited to your needs, and respond to your questions and changing circumstances.

  • Investing in a fund (undertaking for collective investment or UCI) offers a number of benefits for individual investors: </br></br>
    • Diversifying risks by spreading your investments. A UCI is a solution that allows you to invest in a range of securities so that your risks do not become too concentrated. At Carmignac, portfolio managers are responsible for investment diversification.</br> • Access to a broader investment universe. Depending on their objective, the funds can invest around the world in a wide array of assets ranging from equities to derivatives. This enables portfolio managers to seize opportunities and/or protect the fund during a crisis. At Carmignac, for example, we have access to Chinese equities reserved exclusively for Chinese residents and a list of qualified institutional investors.</br> • Entrusting your capital to professionals with the knowledge and experience to understand and analyse economic and financial developments so as to make well-founded investment decisions. At Carmignac, we have developed our internal research, complemented by on-site visits, an annual trip to Asia and Latin America, and several proprietary tools.</br> • Lower brokerage fees. Investing through a UCI reduces transaction costs (when buying or selling stocks) with financial intermediaries.</br>

  • There are a number of tax wrappers in which you can choose to invest your savings: life insurance policies and securities accounts </br></br>

    If you have a securities account, any capital gains you make when reselling the securities are subject to:</br>
    • Either the proportional income tax scale: a marginal tax rate determined by your income.</br> • Or a flat tax of 30%: income tax of 12.8% and a social security contribution of 17.2%, adding up to 30%.</br>

    For life insurance, any capital gains you realise when surrendering a policy are taxed in one of several ways, depending on the term of your policy and the premium payment date. We recommend discussing your options with your usual tax adviser. The capital gains are subject to:</br>
    • Either the income tax rate: a marginal tax rate determined by your income.</br> • Or a flat tax: income tax of 12.8% and a social security contribution of 17.2%, adding up to 30%, and tax relief of 5.3% for surrenders after 8 years, with premiums capped at €150,000.</br>

  • A standard securities account is a bank account for investing on the financial markets.

    Holders of such accounts can invest in company shares, bonds (issued by governments or companies) and undertakings for collective investment (referred to as UCIs or, more commonly, as “funds”) such as French common funds (FCP), open-ended investment companies (SICAV) or listed index-linked funds (exchange traded funds or ETFs).

    While there is no tax relief on securities accounts, they do offer other key benefits:</br>
    • No limit on invested capital. You are free to invest as much as you want.</br> • No geographical limits. You can diversify your investments by accessing all of the funds in our range.</br> • Suitable for legal entities (companies, etc.). For example, a company could use a securities account to invest its cash.</br> • Option to add a second beneficiary. Just like a standard bank account, a securities account can be held jointly.</br> • Transferral to the person of your choice. You can pass on your securities account (full ownership or bare ownership/usufruct) as part of your estate or as a gift.</br>

    Like other bank accounts, the securities account is covered by the French deposit insurance and resolution fund. This fund steps in to protect clients’ deposits, securities and guarantees if a financial institution fails.

  • At Carmignac, we only monitor and handle products we know inside out: the funds we manage. This approach ensures that we have a detailed understanding, at all times, of our clients’ portfolios and the levels and types of risk to which they are exposed so that we can make suitable recommendations. </br></br>

  • Carmignac does not offer tax advice because we focus on our core expertise. However, we are in a position to provide our clients with information on the tax characteristics of our products.

    For more complex matters requiring bespoke support, we advise our clients to consult a specialist.

  • Our funds have daily liquidity. Access to your capital is guaranteed across our entire range, and no penalties apply for withdrawing your savings.

    Redemption orders received in the morning are executed on the same day and the money is paid out within two or three business days depending on the terms of your life insurance policy or securities account.

Socially responsible investment (SRI)

  • 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.</br></br>

    Responsible investment has three major pillars: environment, social and governance (ESG) themes. </br>
    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). </br></br>
    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.</br>
    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.</br>

    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.</br>

    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. </br></br>
    Some of our funds have been awarded labels by independent bodies in recognition of our responsible finance approach to managing our investments.</br></br>
    All our funds are categorised on the basis of three articles drawn up by the European Commission (SFDR):</br></br>
    Article 6 – Funds that assess the risks linked to ESG criteria prior to the investment phase but do not have a sustainability objective.</br></br> • 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).</br></br> • Article 9 – Funds that place a quantifiable sustainable objective at the heart of their investment decisions.</br></br>

Marketing communication. Please refer to the KID/KIID, prospectus of the fund before making any final investment decisions.

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, 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 the United Kingdom: the Funds’ respective prospectuses, KIIDs and annual reports are available at, 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, 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