No need to reinvest at lower rates!
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Discover Target Maturity Bond Funds at Carmignac
Three alternatives to meet your needs
The internal rate of return (IRR) of this fund's bond portfolio at maturity is 3.94%2. Data gross of fees and charges, which correspond to 0.95% of the total investment, to be deducted from the IRR shown. The 2023 return of the fund was 10.15% and in 2024 is 5.49%2.
Fund portfolio maturity: November 20252
Unfavourable scenario2 based on past returns for a 10-year horizon: -6.03%
The internal rate of return (IRR) of this fund's bond portfolio at maturity is 4.73%2. Data gross of fees and charges, which correspond to 1.04% of the total investment, to be deducted from the IRR shown. The 2023 return of the fund was 12.76% and in 2024 is 6.56%2.
Fund portfolio maturity: May 20272
Unfavourable scenario2 based on past returns for a 10-year horizon: -0.45%
The internal rate of return (IRR) of this fund's bond portfolio at maturity is 5.39%2. Data gross of fees and charges, which correspond to 1.14% of the total investment, to be deducted from the IRR shown. The 2023 return of the fund was 5.26% and in 2024 is 7.12%2.
Fund portfolio maturity: February 20292
Unfavourable scenario2 based on past returns for a 10-year horizon: 0.00%
Click "More information" to consult the fact sheet of each investment fund where you can find, among other information, the historical return of the last 5 years (or from the inception date of the fund, if it is less than 5 years old).
How do these funds invest?
They invest in corporate bonds with a fixed maturity.
This gives investors visibility over expected returns in line with the maturity horizon.
Why are Target Maturity Funds
by Carmignac a potentially good option?
- First off, you reduce the risk of reinvestment at lower interest rates, as the bond portfolio is already bought and will be kept at a fixed rate until the bonds mature. This allows you take advantage of current interest rates for longer.
- Carmignac's global approach allows you to invest in all credit markets and leverage a variety of performance drivers.
- This type of product combines the simplicity of investing in a single bond and the benefits of a diversified fund, as it buys a portfolio of different bonds with a unified maturity.
- These funds do not charge a redemption fee, so you can withdraw your investment whenever you want without any charge3.
Bear in mind that any investment carries some level of risk, including the lack of return, loss of invested capital and/or foreign exchange risk for non-euro-denominated products. Redeeming your investment prior to the recommended term may increase the risk of loss. Likewise, past performance is no guarantee of future results.
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Before investing, please consult the risk rating and information for each of the Investment Funds distributed by Open Bank, S.A., in the Prospectus or Key Investor Information Document (KIID) for each one of the Investment Funds, available at www.openbank.es and www.cnmv.es.
1 Source: European Central Bank as at 17/10/24. In October, the European Central Bank lowered interest rates for the third time in 2024 by 25 basis points to 3.25%.
2The Internal Rate of Return (IRR) expressed as the yield to maturity of the portfolio of bonds (YTM) in which each of the investment funds invests, taking into account the principal and coupon payments (if any) and without the value shown being taken as the sole value of the potential return on the participant's investment. This IRR figure is gross of investment fund fees and must be net of the fund's ongoing expenses, which include all of the fund's costs, including the costs of purchasing and holding the fixed income issues in which it invests, which are implicitly deducted from the fund's daily net asset value and which are expressed as an annual percentage. The risk is defined on a scale of 1 to 7. Risk rating 1 does not mean a risk-free investment. Source of return: Refinitiv. The 2023 return corresponds to the period from 01/01/2023 until 31/12/2023, except for the Carmignac Credit 2029 Fund, which corresponds to the period from its inception on 20/10/2023 until 31/12/2023; and the 2024 return corresponds to the period from 01/01/2024 until 12/11/2024. The returns shown are net of fees. IRR provided by the asset manager on 8/11/2024.
The unfavourable scenarios presented are an estimate of future performance based on past data on the change in this investment and are not an exact indicator. What you will receive will vary depending on market developments and the length of time you hold the investment or product.
The unfavourable past performance scenario occurred between December 2020 and December 2022 for the Carmignac Credit 2025 fund, January 2016 and January 2020 for the Carmignac Credit 2027 fund and February 2016 and February 2021 for the Carmignac Credit 2029 fund, as set out in the funds' KIID respectively. Past performance is no guarantee of future results.
3The Fund has no entry or exit fees and no minimum investment requirements. In addition, the Fund remains open to subscriptions and redemptions without penalty throughout its life. However, ‘In accordance with article L.214-8-7 of the French Monetary and Financial Code and Article 411-20-1 of the AMF's General Regulations’, the asset manager may impose a maximum limit on redemptions (’Gates") in exceptional circumstances or if the interests of unitholders so require. The asset manager has set up a mechanism for limiting redemptions above a threshold of 5%, corresponding to the ratio of redemptions minus subscriptions to the net assets of the Fund. This mechanism is not systematically adopted, and the asset manager reserves the option to meet all or part of the redemption requests in excess of this threshold. The redemption limitation mechanism shall apply to a maximum of twenty net asset values over a three-year period. Even if the mechanism has been activated, the asset manager may also decide on a given net asset value date to meet all or part of the redemption requests above this threshold.
In addition, the management company has adopted a net asset value adjustment mechanism (known as ‘swing pricing’) to limit the cost of restructuring the portfolio following major transactions in liabilities in order to protect the interests of unitholders. The net asset value of the Fund may be affected by portfolio restructuring costs if subscriptions, switches, or redemptions are made at prices which do not reflect the actual sale or purchase price of the Fund's assets. This price difference may be due to transaction fees, taxes, and other costs (such as liquidity costs), as well as the bid-ask spread between the purchase and sale prices of the assets.
The net asset value may be adjusted by an adjustment factor (the ‘swing factor’) if, on a given net asset value date, the total net subscriptions, switches, and redemptions exceed a certain threshold defined by the asset manager. Thus, the net asset value shall be adjusted upwards (or downwards, as the case may be) if the change in liabilities is positive (or negative), so as to reduce, for the unitholders of the Fund, the cost of restructuring the portfolio following transactions in liabilities. The swing factor shall reflect all transaction costs. Information on the application of the swing pricing mechanism is available to unitholders on the website https://www.carmignac.fr/fr_FR/article-page/informations-reglementaires… or on request.
In case of adjustment, the net asset value adjusted by the swing factor shall be the only net asset value of the Fund. As an exception to the above, performance fees shall be calculated on the basis of the net asset value calculated before the application of the swing factor.
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