Flash Note
A new target maturity Fund has joined Carmignac’s Credit range
Launch of Carmignac Credit 2027
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Length
4 minute(s) read
After launching our first target maturity fund invested in credit markets in 2020 and confident that the current environment favours this type of carry strategy, today we are launching its second edition: Carmignac Credit 2027.
A favourable environment
Interest rates have risen over the past several months, accelerating to levels that became attractive in credit markets.
Amidst an uncertain market context, carry could be a well-suited strategy, as it combines diversification through carefully selected bonds, with visibility, through an indication of return ahead of time and a clear maturity date1.
Carmignac Credit 2027 in a nutshell
Managed by Carmignac’s credit market experts, Carmignac Credit 2027 is based on a carry strategy of private and public sector issuers. The Fund targets appreciation of invested capital over a five-year horizon, while giving investors an opportunity for early redemption if the Fund’s internal rate of return hits one of the thresholds mentioned in its prospectus prior to maturity1.
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A carry strategy with an early-redemption optionDuring the third or fourth year, investors may recover their capital prior to maturity if the Fund reaches or exceeds a performance deemed appropriate, as defined in the prospectus1.
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A vast investment universe
Carmignac Credit 2027 seeks to capture attractive credit premiums worldwide while hedging against currency risk, with the goal of building up a diversified and selective portfolio based on strong convictions.
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Risks that recede over time
In addition to systematic hedging of currency risk, the Fund’s very nature provides for a receding of interest-rate risk as the maturity date approaches.
The Fund presents a risk of loss of capital, the performance is not guaranteed.
Portfolio construction is based on an in-depth analysis of each opportunity researched, including a conservative estimate of the fundamental cost of risk2. This analysis is also used to determine the terms and conditions under which the early-redemption option may be exercised, particularly for calculating the internal rate of return that the Fund must achieve.
The fund has an initial subscription period from 2 May 2022 to 30 June 2022.
A proven approach to credit markets
The Fund benefits from the solid and proven expertise of its management team, which already manages our first target-date fund, Carmignac Credit 2025, which we launched in October 2020, as well as our global credit strategy Carmignac Portfolio Credit, which we launched in July 2017.
These strategies have already proven their potential since their respective launches:
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Carmignac Credit 2025
Launched on 30/10/2020
+2.5%
Annualised return
by the Fund -
Carmignac Portfolio Credit
Launched on 31/07/2017
+6.2%
Annualised return
by the Fund, vs. 0.87% by its benchmark3
Past performances are not a reliable indicator of future performances.
Source: Carmignac, 01/04/2022. Performances of A EUR Acc. units. They are net of fees (excluding front-end fees, if any, charged by the distributor). Returns may vary either upward or downward, owing to currency fluctuations, on units that are not hedged for currency risk. Any reference to a ranking or price is not a reliable indicator of future rankings or prices of these funds or of the management company. Morningstar category: EUR Flexible Bond. Morningstar Rating™: © 2021 Morningstar, Inc. All rights reserved. Information contained in this document is the property of Morningstar and/or its content providers; it may be neither reproduced nor disseminated. No guarantee is offered as to its reliability, exhaustiveness or relevance. Neither Morningstar nor its content providers assume any liability for damage or losses incurred from the use of said information.
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Pierre Verlé
Head of Credit, co-Head of Fixed Income, Fund Manager
19 years’ experience, Joined Carmignac in 2013
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Alexandre Deneuville
Fund Manager
16 years’ experience, Joined Carmignac in 2015
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Florian Viros
Fund Manager
17 years’ experience, Joined Carmignac in 2015
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Management team as of 02/05/2022. The management team is subject to change over the life of a fund.
(1) Please 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. (2) Fundamental risk cost = Estimate of annualised probability of default x Loss in case of default. (3) Benchmark: 75% ICE BofA Euro Corporate Index, 25% ICE BofA Euro High Yield Index. Coupons reinvested. Rebalanced quarterly.
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.