PURPOSE OF WEBSITE: INFORMATION
The website www.carmignac-gestion.com is exclusively an information tool whose purpose is to present the portfolio management activities of Carmignac Gestion S.A. and its Luxembourg-based subsidiary, as well as the main features of its UCITS and services.
TYPE OF INFORMATION AVAILABLE ON THE SITE
All the information contained herein is indicative only. This website is not a transactional site. All information may be modified by Carmignac Gestion without prior notice. The information published on the site does not constitute:
- an offer of products or services and should not be viewed as a public offering or as any proposal or solicitation to buy or sell transferable securities or any other asset management or investment product;
- or encouragement or advice on any investment or arbitrage of transferable securities or any other asset management or investment product.
Carmignac Gestion and its contributors shall not held be held liable for the way in which this information is used or any resulting consequences, particularly in terms of the decisions which may be made or actions that may be taken based on this information.
LEGAL INFORMATION
The prospectus of each UCITS approved and/or regulated by the Commission des Opérations de Bourse (the French Securities Trading Commission) and the prospectus of each UCITS approved by the Commission de Surveillance du Secteur Financier (the Luxembourg financial supervisory authority) are available on the site. The applicable legal documentation should be read before making any subscription in a UCITS or any other financial product.
The other legal documents are available from the offices of Carmignac Gestion at 24, place Vendôme, Paris (75001). Investment in financial products may involve risks and the value of a share of a SICAV or a unit of an FCP reflects the value of the securities and assets held in the portfolio and is subject to market fluctuations.
Past performance is not a guarantee of future performance and may fluctuate over time.
The official language of the website is French. The website is subject to French law and comes under the jurisdiction of the French courts.
ACCESS
The information on the products and services on this site is only for the use of residents of Switzerland.
Access to products and services detailed on the website may be restricted for certain persons or certain countries and, in particular, for US and UK investors who are governed by specific legislation.
In particular, it is specified that the UCITS have not been and will not be registered with the US Securities and Exchange Commission as stipulated by the Investment Company Act of 1940 and its amendments or any other regulation governing transferable securities. Consequently, none of the prospectuses published on this website may be introduced, sent or distributed in or to the United States of America, its territories or possessions, or submitted to US institutional residents or companies, associations or other entities created or governed according to the laws of the United States (all the aforementioned terms constituting a “US person” under Regulation S in application of the United States Securities Act 1993). Moreover, the UCITS may not be offered or sold to US investors.
More generally, the products and services presented on this site may only be subscribed to in the jurisdictions in which their marketing and distribution are authorised. Carmignac Gestion advises all interested parties to check in advance whether they are legally entitled to subscribe to the products and/or services presented on the website.
None of the products or services presented here will be provided to a person if the law in his/her country of origin, or any other country of which he/she is subject to the jurisdiction, prohibits it. The reader of this message is requested to ensure that he/she is legally authorised to consult this site from the country from which the connection has been established.
HYPERTEXT
The creation of hypertext links to the site is not permitted without Carmignac Gestion's consent. A request may be made to Carmignac Gestion for the creation of such links. Your request should be sent to the Partners and Institutional Clients Department, 24, place Vendôme, 75001 Paris or to the following email address: partenaires@carmignac-gestion.com.
PERSONAL DATA
Automatic processing of personal data carried out within the framework of this website must be declared to the Commission Nationale de l’Informatique et Libertés (the French data protection authority). In accordance with the French law 78-17 of 6 January 1978 on "data processing, files and individual rights" you have the right to access, modify, correct and delete personal information.
You may exercise these rights by contacting:
- in relation to the "PARTNER AREA"; the Partners and Institutional Clients Department, 24, place Vendôme 75001 Paris.
- in relation to "Consult your account"; the Private Investors Department, 24 place Vendôme 75001 Paris.
LEGAL INFORMATION CONCERNING PERFORMANCE INDICATORS
Price quotations: Data on the CAC 40, SBF 250 and Micas indices are provided by Euronews of the Euronext stock exchange, which is the sole owner of such data. Prices are published with a 15-minute delay. - Data on the Nasdaq index are provided by the Nasdaq stock market, which is the sole owner of such data. Prices are published with a 15-minute delay. - Data on the Nikkei 225 index are provided by the Tokyo stock exchange and are the sole property of Nihon Keizai Shimbun, Inc. The published index is the daily closing level of the index.
Copyright: Data published on the Carmignac Gestion website are the sole property of their respective owners as cited above.
User restrictions: It is strictly forbidden to publish, replicate, broadcast or reproduce the information and data contained on this site for the purpose of sending them to third parties. The use of any electronic data storage device to collect the financial data presented on this site is not permitted.
Dividend policy: The aforementioned indices and the performance indicators of Carmignac Gestion’s UCITS referred to on the site are calculated excluding dividends. Carmignac Gestion’s UCITS are accumulation funds (dividends included).
REGULATORY INFORMATION
- Best selection policy
- Conflict of interest management policy
- Voting policy
- Report on 2008 intermediary fees
1. Best selection policy
All investment service providers are subject to an obligation to act in the best interests of their clients when executing orders resulting from investment decisions relating to portfolios.
Therefore, in its role as an asset management company, and with regard to the characteristics of its business, Carmignac Gestion is more specifically obliged to select intermediaries whose execution policy will enable the company to generate the best result possible when executing orders sent on behalf of its clients.
Consequently, Carmignac Gestion has defined an intermediary selection policy based on a certain number of criteria, as well as implementation methods and a tailored reporting system:
Carmignac Gestion uses a multi-criteria approach for selecting intermediaries, which guarantees the best execution of stock market orders.
The criteria used are both quantitative and qualitative and depend on the markets on which the intermediaries offer their services, both in terms of geographical regions (global, pan-European or local intermediaries) and financial instruments (intermediaries specialised in the equity, interest rate, convertibles or derivatives markets).
Each analysis criterion is subject to an assessment, which is allocated a weighting coefficient, thereby enabling an overall rating to be attributed, which then allows all the intermediaries analysed to be ranked in order to determine the intermediaries to be selected.
The analysis criteria notably cover the availability and proactiveness of contacts, financial health, speed, quality of processing and order execution and management fees.
Intermediary rating matrices are updated twice a year. On this basis, the list of intermediaries selected is also reviewed at the same frequency.
We will inform you of any major change to our selection policy by displaying an updated version of our selection policy on our website: www.carmignac-gestion.fr
2. Conflict of interest management policy
The Directive stipulates that all investment service providers must have a policy for managing operational conflicts of interest. Carmignac Gestion has such a written policy, which aims to prevent, detect and, if necessary, fairly manage conflicts of interest that may arise in the course of carrying out its services, between the company’s own interests and the interests of its clients, or between the interests of several clients.
This notably involves identifying and controlling:
• the participation of an employee in one or several investment services offered by investment service providers;
• the separation of activities likely to cause potential conflicts (for example, proprietary trading and trading on behalf of third parties);
• the circulation of confidential or privileged information at investment service providers;
• corporate mandates exercised by employees of investment service providers privately or as part of their professional activities;
• commissions paid or earned for services or activities exercised by or in favour of investment service providers;
• the method of compensating employees as part of the distribution of financial products;
• benefits or gifts possibly received by employees of the investment service providers as part of their professional activity.
3. Voting policy
Carmignac Gestion’s voting policy is set out in this document. Its effects are permanent and apply to the entire range of UCITS managed by Carmignac Gestion. The voting policy details the general principles of application normally used in the case of votes.
a) Organisation of Carmignac Gestion in terms of the exercise of voting rights
The management team is the body responsible for the voting decisions issued. Choices are approved either at management committee meetings or individually, taking into account the principles detailed in this Voting policy.
The Active Middle Office department is the body responsible for processing and monitoring the resolutions submitted. It supports the management team with a view to facilitating the exercise of votes (monitoring alerts, requesting voting documents, returning completed and signed documents from managers, etc.)
b) Principles for determining the exercise of voting rights
Carmignac Gestion exercises the voting rights attached to the securities held by the UCITS that it manages when there is a risk of the companies changing their strategy, which may be evidenced by:
- a risk of a change in the majority shareholder;
- a risk of a merger or acquisition;
- a risk of a change in senior management;
- a risk of restructuring, etc.
Once these risks are identified, Carmignac Gestion’s aim is to intervene in the companies in which the funds represent a significant position. As such, it takes part in the vote when one of the following conditions has been fulfilled:
- through its UCITS, the asset management company holds more than 3% of the company’s capital;
- the line represents more than 5% of the fund’s assets.
c) Voting rights policy
Carmignac Gestion’s voting rights policy aims to favour the exclusive interests of UCITS unit holders. As such and with regard to voting in companies that fall under the scope of application of this policy, the votes issued by Carmignac Gestion will favour:
• the implementation of the foundations for an effective corporate governance plan;
• shareholders’ rights and the main functions of holders of capital;
• fair treatment of shareholders;
• the role of different stakeholders in corporate governance;
• transparency and distribution of information;
• the responsibility of the Board of Directors.
d) Procedures that aim to detect, prevent and manage situations involving conflicts of interest liable to impact the free exercise of voting rights.
Carmignac Gestion’s compliance code defines the cases where situations involving conflicts of interest could occur for all management team employees.
e) Method of exercising voting rights, such as physical presence at AGMs, recourse to power of attorney without indicating the proxy, or recourse to postal voting.
Voting rights will mainly be exercised by postal votes.
f) Reports to clients on voting rights
A report is drafted once a year, within four months of the end of a given financial year. It provides quantitative and summary information on the exercise of voting rights over the last year. It is available on request from the asset management company.
4. Report on 2008 intermediary fees
When the portfolio management company has recourse to services which assist in investment decisions and order execution and the intermediary fees for the previous financial year exceed 500,000 euros, it will draw up a document entitled “Report on intermediary fees”.
a) Conditions requiring recourse to assistance services for investment decisions and order execution
During 2008, Carmignac Gestion had recourse to assistance services for investment decisions and order execution as part of shared commission agreements with the following three service providers:
• Datamonitor
• Gartman Letter
• BBSP
Outside of these service providers, the majority of the assistance services for investment decisions and order execution were provided by the service providers responsible for order execution.
b) Breakdown of intermediary fees between order execution and assistance with investment decisions
Intermediary fees for receiving and sending and for order execution: 34%
Intermediary fees for assistance services for investment decisions and order execution: 66%
This breakdown covers all assets held in UCITS and Discretionary Management.
c) Percentage of fees repaid to third parties in 2008 as part of shared commission agreements
Fees repaid to third parties for the settlement of assistance services for investment decisions and order execution under shared commission agreements represented 0.28% of total intermediary fees.
d) Measures implemented to prevent or deal with any possible conflicts of interest when choosing service providers.
The choice of service providers and their assessment is duly governed by the Intermediary Selection Procedure and the Conflict of Interest Policy.
CARMIGNAC GESTION S.A.
Société anonyme, portfolio management company (COB authorisation number GP 97-08 of 13/03/1997) registered in the Trade and Companies Register of Paris under number 349.501.676 Share capital of EUR 15,000,000.
Registered office: 24, place Vendôme, 75039 Paris Cedex 01
Chairman of the Board of Directors: Mr. Edouard Carmignac
Publications Director: Mr. Eric Helderlé
Editor: Mrs. Julie Benoit
Web host: L'île des Médias - 5, rue Coq Héron - 75001 - Paris
Updated on 15 May 2009