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Changes to certain sub-funds of “Carmignac Portfolio”

  • Published

ISIN: (SEE LIST BELOW)


6 August 2021, Luxembourg

Notice to Shareholders

We would like to thank you for the trust you have placed in us and remain honored to count you among the Shareholders of “Carmignac Portfolio” (the “Fund”).

We would like to hereby inform you of the following changes to certain Sub-Funds of the Fund and the new Fund’s prospectus dated AUGUST 2021, as resolved by the Board of Directors after due consideration.

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.


1. INTEGRATION OF ECOLOGICAL AND SOCIAL CHARACTERISTICS WITHIN THE INVESMENT APPROACH



The following Sub-Funds will integrate ecological and social characteristics within their investment approach and will officially become “funds that integrate Environmental and Social characteristics within their investment approach and promotes investments in companies that follow good governance practices” in accordance with the definition of Article 8 in the EU’s Sustainable Finance Directive Regulation No. 2019/2088 (SFDR):

Carmignac Portfolio Patrimoine
Carmignac Portfolio Investissement
Carmignac Portfolio Sécurité
Carmignac Portfolio Flexible Bond

These ecological and social characteristics are implemented as follows:

1) Exclusion of controversial investments: These Sub-Funds will exclude companies that conflict with Carmignac’s values due to their activity, standards or behaviour including: thermal coal miners, tobacco producers and high-emitting energy power companies, as well as any company which is not managed sustainably – as represented by their very poor environmental, social and governance (“ESG”) ratings.

2) Integration of extra-financial analysis: These Sub-Funds will analyse ESG practices of investee company or issuer alongside conventional financial analysis. Carmignac’s proprietary ESG research system, named START, will enable the investment manager to assess the impact of a company’s business on its environment and further improve to identify risks and opportunities.

3) Engaging with investee companies and issuers: These Sub-Funds will engage with investee companies and issuers on ESG-related issues to help instil best practices, clarify our views or hold senior management accountable when issues arise. The investment manager will do so through regular meetings and the exercising of our shareholder voting rights.

This approach (integration of ecological and social characteristics within the sub-funds’ investment approach) enables the investment manager to obtain an in-depth picture of each company’s true potential and thus helps to make better investment decisions.

Details on how the socially responsible investment approach is applied specifically for each above mentioned Sub-Fund is described in the extra-financial analysis section of the new AUGUST 2021 prospectus and can be found on the following websites: www.carmignac.com and https://www.carmignac.lu/en_GB/responsible-investment/template- hub-sri-thematic-funds-4526 (“Carmignac Responsible Investment website”).

The Risk profiles of the Sub-Funds remain unchanged. There are no changes to investment manager, the Reference Indicator or the fees of the Sub-Funds.

The changes will take place after one (1) month notice period on 6 September 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.


2. ELIGIBILITY OF SUB-FUND FOR FRENCH SAVINGS PLAN



The description of the investment strategy of the Sub-Fund “Grande Europe” will be slightly modified to ensure eligibility for the French share savings plan (“Plan d’épargne en action” or ”PEA”).

The investment strategy is modified to indicate that the Sub-Fund invests “at least 75% of its assets in equity in the European Economic Area”. Previously, the investment strategy indicated that the Sub-Fund invests “mainly its assets in equity in the European Union”.

This adaptation to French regulation does not materially impact the investment strategy of the Sub-Fund which is to continue to invest successfully in European equities.


3. PARTIAL DELEGATION OF INVESTMENT MANAGEMENT



In order to optimally deploy the investment management competences within the Carmignac group, the delegation of investment management is amended for the Sub-Fund
“Emerging Discovery”.

The investment management of the Sub-fund, which has been previously delegated (entirely) by the Management Company to Carmignac Gestion in Paris (France), will be partially delegated by the Management Company to Carmignac Gestion in Paris (France) and partially carried out by the Management Company through its London branch.


4. CHANGES TO LEVERAGE



The expected leverage of the Sub-Fund “EM Debt” is amended to 2000% (previously 500%).

The investors should note that the leverage is calculated as a sum of notional of each derivative transaction, without any netting. The higher level of leverage does not necessarily imply higher leverage risk in the Sub-Fund.

The Sub-Fund’s higher expected leverage is typically linked to increased use of short-term interest rate derivatives.

The modification is subject to a notice period and will take effect on 6 September 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 AUGUST 2021 has been established to reflect these modifications.

The prospectus dated AUGUST 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 1:

LU1163533422, LU1163533695, LU1792391838, LU1299305190, LU1299305356, LU1299305513, LU1299305786, LU1299305943, LU1163533349, LU0992628429, LU0992628692, LU0992627611, LU1792391671, LU1163533778, LU0992627702, LU0992627884, LU0992627967, LU0992628346, LU1299311164, LU1299311321, LU1299311677, LU1299311834, LU0992625839, LU0992626217, LU1299306321, LU1299306677, LU1299307055, LU1299306834, LU0992624949, LU1792391911, LU0992625086, LU0992625169, LU0992625243, LU0336084032, LU1299302684, LU0992631050, LU0807689665, LU0807689749, LU0992631217, LU0992631308.

Item 2:

LU0099161993, LU0807688931, LU0807689079, LU0807689152, LU0294249692, LU0992628775, LU0992628858, LU2139905785, LU0992628932, LU0992629070, LU1623761951, LU2206982626, LU2212178615.

Item 3:

LU0336083810, LU0807689400, LU0807689582, LU0992629740, LU0992629823, LU0992630169, LU1623762256, LU0992630086, LU1623762330.

Item 4:

LU1623763221, LU2277146382, LU2346238343, LU1623763734.