Fixed income target maturity funds: The story continues with Carmignac Credit 2031
In 2020, we launched the first fixed income target maturity fund in a range that now comprises several vintages. Five years later, given the success of this franchise reaching over €3 billion in assets under management1 and investors' strong appetite for this type of strategy offering visibility over their investments, we are expanding our range with Carmignac Credit 2031.
Following the increase in risk premiums in 2020 and the rise in interest rates in 2022, the credit markets have once again gained attention due to their attractive yields, and the asset class has won over new investors. Today, in an uncertain environment for equities, fixed income markets, inflation and the economy in general, the very nature of credit provides investors with a form of visibility.
Opting for a fixed income target maturity fund could be an attractive alternative for investors with a clear investment horizon who want visibility on expected returns, while diversifying the risks to which they are exposed.
Carmignac Credit 2031: a flexible approach to carry
Carmignac Credit 2031 aims to benefit from a carry strategy in global credit markets, always hedging currency risk, and relying on a careful selection of corporate bonds. The Fund has an annualized performance objective (net of management fees) between its inception date on 31 December 2024 and its maturity date on 31 October 2031, as described in the prospectus for each category of units2.
Common to all the funds within Carmignac’s target maturity range, its approach is distinctive in its flexibility:
A vast investment universe
Carmignac Credit 2031 may invest in both developed and emerging markets, in securities with diverse risk/return profiles, to build a diversified and selective portfolio with an average investment grade rating3.
An active carry management
Fund Managers can optimise performance by adding and pruning opportunities when they can improve the risk-return profile of the Fund, always keeping in mind its target maturity.
An open structure
Portfolio diversification allows us to keep the Fund open to subscriptions and redemptions on a daily liquidity basis throughout its life.A tried and tested Fund range
Our fixed income target maturity fund management process has proved its worth, as demonstrated by Carmignac Credit 2029 and Carmignac Credit 2027 respective performance:
+11.3%
Carmignac Credit 2029
Annualised performance since launch on 20 October 2023
Target annualised performance objective from inception to maturity on 28 February 2029: 4.22%.
+8.1%
Carmignac Credit 2027
Annualised performance since the end of the initial subscription period on 30 June 2022
Target internal rate of return, observed between 30 June 2022 and 30 June 2026, the Fund's last early maturity date: 1.94%.
Please consult the Funds' prospectuses for more information about their investment objective. The objective of the Funds is not a promise of return or performance of the Funds and performance is not guaranteed.
Source: Carmignac, 31/12/2024. Data for the A EUR Acc share classes. Past performance is not an indication of future results. Performance is shown net of fees (excluding any entry charges applied by the distributor).
Our convictions on credit markets
Today, the market environment is favourable to carry, with yields still attractive (over 3% for European investment grade securities and close to 6% for high yield4) , but also and above all to stock selection. While credit markets as a whole have benefited from the compression of credit spreads since 2022, there is a high dispersion between the different segments, sectors and issuers of the asset class, leaving plenty of opportunities for fundamental investors to seize.
Our credit experts look precisely at opportunities where the fundamental risk is overestimated by the markets, so as to capture high premiums compared to general market valuations for equivalent risk. There are three major themes in our portfolios today:
Solid expertise in credit markets
As fixed income market specialist for 35 years, Carmignac has developed its credit expertise over time. Our experienced credit portfolio managers, who have been working together since 2015, have demonstrated their ability to create value in different market configurations through a range of Funds dedicated to the asset class:
Carmignac Credit 2031 A EUR Acc
- Recommended minimum investment horizon
- From the launch date to the maturity date, i.e. 31 October 2031.
- Risk indicator*
- 2/7
- SFDR - Fund Classification**
- Article 8
*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **The Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 is a European regulation that requires asset managers to classify their funds as either 'Article 8' funds, which promote environmental and social characteristics, 'Article 9' funds, which make sustainable investments with measurable objectives, or 'Article 6' funds, which do not necessarily have a sustainability objective. For more information please refer to https://eur-lex.europa.eu/eli/reg/2019/2088/oj.
Main risks of the fund
Fees
- Entry costs
- 1,00% of the amount you pay in when entering this investment. This is the most you will be charged. Carmignac Gestion doesn't charge any entry fee. The person selling you the product will inform you of the actual charge.
- Exit costs
- We do not charge an exit fee for this product.
- Management fees and other administrative or operating costs
- 1,14% of the value of your investment per year. This estimate is based on actual costs over the past year.
- Performance fees
- 20,00% max. of the outperformance once performance since the start of the year exceeds that of the reference indicator and if no past underperformance still needs to be offset. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years, or since the product creation if it is less than 5 years.
- Transaction Cost
- 0,13% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.
Carmignac Credit 2029 A EUR Acc
- Recommended minimum investment horizon
- 5 years
- Risk indicator*
- 2/7
- SFDR - Fund Classification**
- Article 8
*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **The Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 is a European regulation that requires asset managers to classify their funds as either 'Article 8' funds, which promote environmental and social characteristics, 'Article 9' funds, which make sustainable investments with measurable objectives, or 'Article 6' funds, which do not necessarily have a sustainability objective. For more information please refer to https://eur-lex.europa.eu/eli/reg/2019/2088/oj.
Main risks of the fund
Fees
- Entry costs
- 1,00% of the amount you pay in when entering this investment. This is the most you will be charged. Carmignac Gestion doesn't charge any entry fee. The person selling you the product will inform you of the actual charge.
- Exit costs
- We do not charge an exit fee for this product.
- Management fees and other administrative or operating costs
- 1,14% of the value of your investment per year. This estimate is based on actual costs over the past year.
- Performance fees
- 20,00% max. of the outperformance when the unit outperforms its annualised performance objective by 4.22% during the performance period. Any underperformance is recovered over 5 years. The actual amount will vary depending on how well your investment performs. The estimate of aggregated costs above includes the average for the last five years, or since the creation of the product if it is less than five years old. If the outperformance is constituted, the commission will be collected no earlier than December 2024.
- Transaction Cost
- 0,13% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.
Carmignac Credit 2027 A EUR Acc
- Recommended minimum investment horizon
- 5 years
- Risk indicator*
- 2/7
- SFDR - Fund Classification**
- Article 8
*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **The Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 is a European regulation that requires asset managers to classify their funds as either 'Article 8' funds, which promote environmental and social characteristics, 'Article 9' funds, which make sustainable investments with measurable objectives, or 'Article 6' funds, which do not necessarily have a sustainability objective. For more information please refer to https://eur-lex.europa.eu/eli/reg/2019/2088/oj.
Main risks of the fund
Fees
- Entry costs
- 1,00% of the amount you pay in when entering this investment. This is the most you will be charged. Carmignac Gestion doesn't charge any entry fee. The person selling you the product will inform you of the actual charge.
- Exit costs
- We do not charge an exit fee for this product.
- Management fees and other administrative or operating costs
- 1,04% of the value of your investment per year. This estimate is based on actual costs over the past year.
- Performance fees
- There is no performance fee for this product.
- Transaction Cost
- 0,12% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.
| Carmignac Credit 2027 A EUR acc | 7,24 | 12,76 | 1,72 |
| Carmignac Credit 2029 A EUR acc | 7,97 | 5,26 |
| Carmignac Credit 2027 A EUR acc | 8,07 |
| Carmignac Credit 2029 A EUR acc | 11,25 |
Source: Carmignac, 31/12/2024. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).
Date of 1st NAV - Carmignac Credit 2027: 02/05/2022; Date of 1st NAV - Carmignac Credit 2029: 20/10/2023
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MARKETING COMMUNICATION. Please refer to the KID/prospectus of the Fund before making any final investment decisions. This document may not be reproduced, in whole or in part, without prior authorisation from the management company. It does not constitute a subscription offer, nor does it constitute investment advice. The information contained in this document may be partial information and may be modified without prior notice. The decision to invest in the promoted funds should take into account all their characteristics or objectives as described in their prospectus. The reference to a ranking or prize, is no guarantee of the future results of the UCITS or the manager. The Funds are common funds in contractual form (FCP) conforming to the UCITS Directive under French law. 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. 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. Access to the Funds may be subject to restrictions with regard to certain persons or countries. 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/or FATCA. The Funds present a risk of loss of capital. The risk, fees and ongoing charges are described in the KIDs (Key Information Document). The Funds’ respective prospectuses, KIDs, NAV and annual reports are available at www.carmignac.com, or upon request to the Management Company. • In Switzerland, the Fund’s prospectus, KID, and annual reports are available at www.carmignac.ch, or through our representative in Switzerland, CACEIS (Switzerland), S.A., Route de Signy 35, CH-1260 Nyon. The paying agent is CACEIS Bank, Montrouge, succursale de Nyon/Suisse, Route de Signy 35, 1260 Nyon. The KIDs must be made available to the subscriber prior to subscription. The Management Company can cease promotion in your country at any time. Investors have access to a summary of their rights in English at the following links (paragraph 5 “Summary of investor rights”):