ISIN : LU1046327000, LU1046327182, LU1046327349
Dear Sir or Madam,
Please be kindly informed that the Board of Directors of Carmignac Portfolio (“the Company”) has decided to liquidate the sub-fund Investissement Latitude (the "Sub-Fund") on 16 November 2020.
1. RATIONALE FOR LIQUIDATION
Carmignac is managing two “Investissement Latitude” strategies – one in Luxembourg (in form of a SICAV) and one in a France (in form of an FCP) since 2014. While the FCP has continued to grow, the assets under management in the Sub-Fund, the SICAV, have gradually decreased. At Carmignac we consider our investors’ interest seriously and therefore perform regular and ongoing governance processes.
The decision to liquidate the Sub-Fund has been taken, in accordance with the articles of association and the prospectus of the Company, to operate an economic rationalization of the product range at the time when the assets of the Sub-Fund have reached a level which no longer allows for the Sub-Fund to be operated in an economically efficient manner.
The Sub-Fund’s total assets have reduced to EUR 27m (31/8/2020). Due to the Sub-Fund’s small asset size, the Board of Directors of the Company believes it is no longer cost efficient, nor in the best interest of its shareholders, to continue to operate the Sub-Fund.
The Sub-Fund will be closed with the last Net Asset Value of 16 November 2020 (the “Liquidation date”).
2. IMPACT TO SHAREHOLDERS
Shareholders who wish to partake in the liquidation, will have their Shares automatically redeemed. The shareholders will receive their net liquidation proceeds in form of one final liquidation payment (taking into account any realization costs) at the Net Asset Value on the Liquidation date.
Shareholders who do not wish to receive the liquidation proceeds in cash, may either redeem their Shares or request the exchange of their Shares for shares of other Sub-Funds of the Company, free of charge, except for any transaction fees that might be charged by local intermediaries on their own behalf, until 9 November 2020 3:00 pm CET.
Those Shareholders interested in exchange of Shares in other Carmignac Funds – including those interested in investing in the Carmignac “Investissement Latitude”, the FCP domiciled in France (total assets EUR 174m as of 31/8/2020) - are kindly advised to contact their Financial Advisor who will remain at their disposal to provide additional information, in particular to discuss the best alternative investment solutions.
3. PROCEDURAL ASPECTS
Subscriptions will no longer be accepted into the Shares of the Sub-Fund after 23 October 2020 3:00 pm CET.
Redemptions will no longer be accepted in the Shares of the Sub-Fund after 9 November 2020 3:00 pm CET.
Any liquidation proceeds which cannot be distributed to shareholders concerned upon closure of the liquidation will be deposited on their behalf with the Caisse de Consignation in Luxembourg.
During the last five (5) business days preceding the Liquidation date, the portfolio of the Sub-Fund may be invested more than normal in cash, so that it is expected that the Sub-Fund will hold cash positions only on the Liquidation Date. As a consequence, the Sub-Fund will not be compliant with its investment objective and investment restrictions (including but not limited to rules for portfolio diversification, risk diversification and cash) stipulated in the Prospectus during the last five (5) business days preceding the Effective Date.
The Sub-Fund will bear securities realization costs only. All other costs associated with the liquidation will be paid by the management company.
We thank you for the trust you have placed on us. 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.