Carmignac unveils unconstrained credit fund

Fund carries a fee of 10% of benchmark outperformance

Carmignac has unveiled an unconstrained global fixed income Ucits fund.

The Carmignac Portfolio Unconstrained Credit fund is a sub-fund of the Luxembourg Sicav Carmignac Portfolio, investing in global investment grade, developed and emerging high yield and structured credit.

It aims to outperform its reference benchmark – 75% BofA Merrill Lynch Euro Corporate Index and 25% BofA Merrill Lynch Euro HY Index – over a minimum period of two years.

The benchmark agnostic fund will be managed by Carmignac head of credit Pierre Verlé (pictured) and fixed income fund manager Alexandre Deneuville using macroeconomic analysis and bottom-up stock selection. The pair will draw on the experience of Carmignac’s 12-strong fixed income team of fund managers and analysts.

The fund has a management fee of 1% and other fees 0.2%. It also has a performance fee of 10% of the outperformance, if the performance is positive and exceeds the reference benchmark since the start of the year.

Carmignac head of fixed income Rose Ouahba said: “We are pleased to extend our credit expertise to clients with the launch of Carmignac Portfolio Unconstrained Credit fund. Pierre and Alexandre’s strong expertise in this asset class, combined with our flexible and unconstrained approach, will enable them to navigate the credit markets and capture non consensus opportunities.”

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