Letter to holders of the Fund Carmignac Credit 2025
MERGER OF CARMIGNAC CREDIT 2025
WITH CARMIGNAC CREDIT 2031
(ISIN: FR0013515970; FR0013515996; FR0013516002; FR0013516010; FR0013516028; FR0013516036; FR0013516044)
Dear Sir/Madam,
We would like to thank you for the trust you have placed in us. We are honoured to count you among the holders of A EUR Acc, A EUR Ydis, E EUR Acc, E EUR Ydis, F EUR Acc, F EUR Ydis and X EUR Acc units in the Carmignac Crédit 2025 fund (the “fund”).
1. What changes are being made to the fund?
We are writing to inform you of an important upcoming change: Carmignac Gestion has decided to restructure its fund range: Carmignac Credit 2025 (the “merging fund”) will be merged into Carmignac Credit 2031 (the “receiving fund”).
The merging fund, Carmignac Credit 2025 (a French FCP), implements a bond carry strategy and is due to mature on 31st October 2025. The fund’s objective is to achieve a specific annualised performance for each of the units. This objective has been accomplished and even surpassed. You can find details of these objectives and the performance of each unit in the table in section 2: “Important information”.
As the investment objective has been achieved early and the fund’s returnreceiving fund (a French FCP) also buys and holds bonds. It is managed by the same team as the merging fund and is due to mature on 31st October 2031. Please refer to section 6 of this document for a summary of the main differences between the two funds.
As a result of the merger, your units in the merging fund, Carmignac Credit 2025, will be exchanged for units in the receiving fund, Carmignac Credit 2031, according to the ratios shown in the “Practical information” section.
2. Important information
We would draw your attention to the targets set for your fund, as shown in the table below.
The fund’s actual performance can also be found in the table below.
| Target set when the fund was launched | 1,9% | 1,9% | 1,6% | 1,6% | 2,3% | 2,3% |
| Actual performance (cumulative as at 30/11/2024) | 10,3% | 10,3% | 9,0% | 8,9% | 12,1% | 12,1% |
| Actual performance (cumulative and annualised as at 30/11/2024) | 2,4% | 2,4% | 2,1% | 2,1% | 2,8% | 2,8% |
3. When will this change take effect?
The AMF approved this merger on 6th January 2025. It will take effect on 25th February 2025.
Please note that for this procedure to run smoothly, you will not be able to subscribe for new units or ask to redeem existing units between 18th February 2025 and 24th February 2025.
As the NAV of the Carmignac Crédit 2025 fund is calculated daily, the last NAV at which Carmignac Crédit 2025 subscriptions and redemptions may be executed before the merger will be that of 18th February 2025.
4. What impact will these changes have on the risk/return profile of your investment?
- Change in risk/return profile: Yes
- Increase in risk profile: No
- Potential increase in fees: Yes
- Extent of change in risk/return profile: Not significant
5. How does this change affect your tax situation?
Fund unitholders may contact their usual advisor to discuss the consequences of the change in the light of their individual circumstances and tax residence.
For persons resident in France for tax purposes:
For natural persons: This procedure will be subject to the deferred tax plan (article 150-0 B of the French General Tax Code). Deferment means that, for tax purposes, this merger will be treated as an interim transaction that, for the year in which the exchange is made, is not taken into account when calculating income tax. Capital gains yet to be realised on the date of the exchange will have their tax deferred until the shares received through the merger are sold, provided that the amount of any balance is no more than 10% of the exchange value of shares received.
For legal entities subject to corporation tax or income tax when they are taxed under a BIC (industrial and commercial profits) or BA (agricultural profits) real earnings scheme: This procedure will be subject to the deferred tax plan (article 38-5 B of the French General Tax Code). Provided that the amount of any balance is no more than 10% of the exchange ratio of the shares received, only the portion of the capital gain corresponding to the balance paid is taxable immediately; the result of the exchange (excluding the balance) will be included in the results for the year in which the shares received in the exchange are sold.
However, for legal entities subject to corporation tax, neutralisation of the exchange loses some of its effect due to the mandatory valuation of units/shares on the basis of their net asset value at the end of the financial year, in accordance with article 209 OA of the French General Tax Code.
6. What are the main differences between the fund in which you currently hold units and the future fund?
The main differences between the merging fund, Carmignac Crédit 2025, and the receiving fund, Carmignac Crédit 2031, as at 25th February 2025, are as follows (unless specified to the contrary, the changes concern all units):
| Auditor | KPMG AUDIT | PricewaterhouseCoopers Audit SA |
| Investment objective* | The fund seeks to increase the value of the portfolio over a 5-year horizon using a bond carry strategy that includes both private and government issuers. The investment objective differs according to the category of units subscribed: | The fund’s investment objective is to offer annualised performance, net of management fees, from the fund’s inception until its maturity on 31/10/2031, of over: |
| In the case of A EUR Acc and A EUR Ydis units: the investment objective is to generate an annualised performance greater than 1.90%, recorded between the date of creation of these units, i.e. 30/10/2020, and 31/10/2025 | In the case of A EUR Acc and A EUR Ydis units: 2.78%; | |
| In the case of E EUR Acc and E EUR Ydis units: the investment objective is to generate an annualised performance greater than 1.60%, recorded between the date of creation of these units, i.e. 30/10/2020, and 31/10/2025 | For AW EUR Acc and AW EUR Ydis units: 2.48%; | |
| In the case of F EUR Acc and F EUR Ydis units: the investment objective is to generate an annualised performance greater than 2.30%, recorded between the date of creation of these units, i.e. 30/10/2020, and 31/10/2025 (the “Maturity Date”); | In the case of F EUR Acc and F EUR Ydis units: 3.28%; | |
| In the case of X EUR Acc units: the investment objective is to generate an annualised performance greater than 2.30%, recorded between the date of creation of these units, i.e. 18/09/2020, and 31/10/2025 | For FW EUR Acc and FW EUR Ydis units: 2.98%. | |
| Recommended investment horizon | Target-date fund: matures 31/10/2025 | Target-date fund: matures 31/10/2031 |
| Change in exposure to different types of risk | During the buy-and-hold phase: | During the buy-and-hold phase: | |
| Investment in contingent convertible bonds (CoCos): 0% to 5%; | Investment in contingent convertible bonds (CoCos): 0% to 15% | + | |
| Investment in equities (mainly due to the restructuring of bonds, including – contingent and other – convertible bonds): 0% to 10% | Investment in equities (mainly due to the restructuring of bonds, including – contingent and other – convertible bonds): 0% to 15% | + | |
| Investment in (short- and medium-term) negotiable debt securities, money market instruments, fixed or floating rate bonds: 0% to 100% | Investment in (short- and medium-term) negotiable debt securities, money market instruments, fixed or floating rate bonds: 0% to 110% | + |
| Maximum fees | Management fees: A EUR Acc units: maximum 0.9% inclusive of tax | Management fees: A EUR Acc units: maximum 1% inclusive of tax |
| Management fees: A EUR Ydis units: maximum 0.9% inclusive of tax | Management fees: A EUR Ydis units: maximum 1% inclusive of tax | |
| Management fees: E EUR Acc units: maximum 1.20% inclusive of tax | Management fees: A EUR Acc units: maximum 1% inclusive of tax | |
| Management fees: E EUR Ydis units: maximum 1.20% inclusive of tax | Management fees: A EUR Ydis units: maximum 1% inclusive of tax | |
| Management fees: F EUR Acc units: maximum 0.5% inclusive of tax | Management fees: F EUR Acc units: maximum 0.5% inclusive of tax | |
| Management fees: F EUR Ydis units: maximum 0.5% inclusive of tax | Management fees: F EUR Ydis units: maximum 0.5% inclusive of tax | |
| Management fees: X Eur Acc units: maximum 0.5% | Management fees: A EUR Acc units: maximum 1% inclusive of tax | |
| Operating and other service expenses (all units): 0.05% (flat rate) | Operating and other service expenses (all units): 0.14% (flat rate) | |
| Ongoing charges | A EUR Acc units: 0.95% (This is an estimate based on actual costs over the last year.) Plus 0.36% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | A EUR Acc units: 1.14% (This is an estimate.) Plus 0.40% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) |
| A EUR Ydis units: 0.95% (This is an estimate based on actual costs over the last year.) Plus 0.36% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | A EUR Ydis units: 1.14% (This is an estimate.) Plus 0.40% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | |
| E EUR Acc units: 1.25% (This is an estimate based on actual costs over the last year.) Plus 0.36% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | A EUR Acc units: 1.14% (This is an estimate.) Plus 0.40% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | |
| E EUR Ydis units: 1.25% (This is an estimate based on actual costs over the last year.) Plus 0.36% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | A EUR Ydis units: 1.14% (This is an estimate.) Plus 0.40% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | |
| F EUR Acc unit class: 0.55% (This is an estimate based on actual costs over the last year.) Plus 0.36% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | F EUR Acc unit class: 0.64% (This is an estimate.) Plus 0.40% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | |
| F EUR Ydis units: 0.55% (This is an estimate based on actual costs over the last year.) Plus 0.36% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | F EUR Ydis units: 0.64% (This is an estimate.) Plus 0.40% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | |
| X Eur Acc units: 0.55% (This is an estimate based on actual costs over the last year.) Plus 0.36% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | X Eur Acc units: 0.55% (This is an estimate.) Plus 0.40% of transaction costs (This is an estimate; the actual amount will depend on the quantity.) | |
| Performance fee | None | Maximum 20% of any outperformance. |
| Subscription fee (not payable to the Fund) | A EUR Acc and A EUR Ydis units: 1% maximum | A EUR Acc and A EUR Ydis units: 1% maximum |
| E units: None | A EUR Acc and A EUR Ydis units: 1% maximum | |
| F and F EUR Ydis units: None | F EUR Acc and F EUR Ydis units: None |
| Name | Carmignac Crédit 2025 | Carmignac Crédit 2031 |
| ISIN | A EUR Acc: FR0013515970 | A EUR Acc: FR001400U4S3 |
| A EUR Ydis: FR0013515996 | A EUR Ydis: FR001400U4T1 | |
| E EUR Acc: FR0013516002 | A EUR Acc: FR001400U4S3 | |
| E EUR Ydis: FR0013516010 | A EUR Ydis: FR001400U4T1 | |
| F EUR Acc: FR0013516028 | F EUR Acc: FR001400U4U9 | |
| F EUR Ydis: FR0013516036 | F EUR Ydis: FR001400U4V7 | |
| X EUR Acc: FR0013516044 | A EUR Acc: FR001400U4S3 |
7. Key points to remember
This document is important and requires your attention. If in doubt, please contact your usual advisor.
Please note the importance of reading the Key Information Document (KID). Your usual advisor is available should you require any further information.
The merger report, prospectus and key information documents, as well as the latest annual and any semi-annual reports, are available in French, English, German, Italian, Spanish and Dutch free of charge from the registered office of the fund's management company: CARMIGNAC GESTION, Société Anonyme, 24 Place Vendôme, 75001 Paris, France. They are also available at www.carmignac.com, and from the management company’s Representative in Switzerland: CACEIS (Switzerland) SA, Route de Signy 35, CH-1260 Nyon. The Swiss Paying Agent is CACEIS Bank, Paris, Nyon/Switzerland branch, Route de Signy 35, 1260 Nyon.
The net asset values are published on www.carmignac.com and www.fundinfo.com.
Yours faithfully,
Christophe Peronin
Deputy Managing Director
APPENDIX – Example of how the exchange ratio is calculated
The exchange ratio used for the merger, expressed to three decimal places, will be as follows for each unit class:
Net asset value1 per A EUR Acc unit of the Carmignac Crédit 2025 fund / Net asset value per A EUR Acc unit of the Carmignac Crédit 2031 fund
Net asset value per A EUR Ydis unit of the Carmignac Crédit 2025 fund / Net asset value per A EUR Ydis unit of the Carmignac Crédit 2031 fund
Net asset value per E EUR Acc unit of the Carmignac Crédit 2025 fund / Net asset value per A EUR Acc unit of the Carmignac Crédit 2031 fund
Net asset value per E EUR Ydis unit of the Carmignac Crédit 2025 fund / Net asset value per A EUR Ydis unit of the Carmignac Crédit 2031 fund
Net asset value per F EUR Acc unit of the Carmignac Crédit 2025 fund / Net asset value per F EUR Acc unit of the Carmignac Crédit 2031 fund
Net asset value per F EUR Ydis unit of the Carmignac Crédit 2025 fund / Net asset value per F EUR Ydis unit of the Carmignac Crédit 2031 fund
Net asset value per X EUR Acc unit of the Carmignac Crédit 2025 fund / Net asset value per A EUR Acc unit of the Carmignac Crédit 2031 fund
Thus calculated, and with units of the Carmignac Crédit 2031 fund being expressed to three decimal places, no balance will be payable to holders (no fractions).
Example of how the exchange ratio is calculated using the net asset values of A EUR Acc units in Carmignac Crédit 2031 if the merger had taken place on 1st January 2025 (here, the net asset values used are those of 1st January 2025), for a merger on 2 January:
A person holding 1 A EUR Acc unit in Carmignac Crédit 2025, valued at €110.50, when 1 A EUR Acc unit in Carmignac Crédit 2031 is valued at €100.17. Someone who had €110.50 representing 1 A EUR Acc unit of the Carmignac Crédit 2025 fund will still have €110.50 after the merger, but this will now represent 1.10 A EUR Acc units of Carmignac Crédit 2031 (i.e. 110.50/100.17 = 1.10).
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