Fixed income strategies
Carmignac Portfolio Flexible Bond
Luxembourg SICAV sub-fundGlobal marketSRI Fund Article 8Share Class
LU0336084032
A flexible solution aiming to capture bond opportunities globally
- A conviction-driven Fund aiming to seize global bond markets opportunities while systematically hedging the currency risk.
- An investment process based on a top-down asset allocation and a bottom-up implementation of interest rate and credit strategies.
Key documents
Asset Allocation
Bonds76.2 %
Other23.8 %
Data as of: 30 Aug 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
Cumulative Performance 10 YearsCumulative Performance 5 YearsCumulative Performance 3 YearsCumulative Performance 12 Months
+ 31.3 %
+ 12.7 %
+ 10.2 %
- 0.5 %
+ 8.9 %
To 18/09/2024
Calendar Year Performance 2014Calendar Year Performance 2015Calendar Year Performance 2016Calendar Year Performance 2017Calendar Year Performance 2018Calendar Year Performance 2019Calendar Year Performance 2020Calendar Year Performance 2021Calendar Year Performance 2022Calendar Year Performance 2023
+ 2.0 %
- 0.7 %
+ 0.1 %
+ 1.7 %
- 3.4 %
+ 5.0 %
+ 9.2 %
0.0 %
- 8.0 %
+ 4.7 %
Net Asset Value
1313.41 €
Asset Under Management
1 398 M €
Market
Global market
SFDR - Fund Classification
Article
8
Data as of: 30 Aug 2024.
Data as of: 18 Sep 2024.
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, for the shares which are not currency-hedged. 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.
Carmignac Portfolio Flexible Bond fund performance
Take a look at the Fund's performance supported by our Fund managers’ market commentary and strategy insight.Our monthly comments
Data as of: 30 Aug 2024.Fund management team
![[Management Team] [Author] Rigeade Guillaume](https://carmignac.imgix.net/uploads/NextImage/0001/18/%5BManagement-Team%5D-Rigeade-Guillaume.png?auto=format%2Ccompress&fit=fill&w=3840)
Guillaume Rigeade
Co-Head of Fixed Income, Fund Manager
![[Management Team] [Author] Eliezer Ben Zimra](https://carmignac.imgix.net/uploads/NextImage/0001/18/%5BManagement-Team%5D-Ben-Zimra-Eliezer.png?auto=format%2Ccompress&fit=fill&w=3840)
Eliezer Ben Zimra
Fund Manager
Performance commentary
The Fund delivered a positive performance in August, in line with its performance indicator.
Our carry strategies were the strongest contributors to the Fund's performance, alongside developed and emerging sovereign rates, which benefited from the easing trend.
Our inflation-linked strategies were negative contributors to performance, alongside our credit protections, which suffered from the tightening of credit spreads in the second half of the month.
In view of sharply tighter valuations, we took profits on sovereign rates and increased our credit protection at the end of the period.
Outlook strategy
We remain in line with a soft landing scenario. Companies are not laying off workers, as it is still very difficult to hire. Consumers are pessimistic, but continue to spend heavily.
The market is now expecting a sequence of major rate cuts, while the yield curve is still underestimating the fiscal indiscipline of economic agents.
Inflation is slowing down, in line with expectations. Nevertheless, the market seems over-optimistic about the normalization of inflation over the next few quarters.
In view of these observations, we are maintaining a cautious stance on the portfolio's interest-rate sensitivity, with a strategy of steepening the yield curves and a marked appetite for inflation products.
Performance Overview
Data as of: 18 Sep 2024.Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). Morningstar Rating™ : © Morningstar, Inc. All Rights Reserved. The information contained herein: is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Source: Carmignac at 20/09/2024
Carmignac Portfolio Flexible Bond Portfolio overview
Below is an overview of the composition of the portfolio.Geographical Breakdown
Data as of: 30 Aug 2024.| Europe | 66.6 % |
| North America | 10.9 % |
| Latin America | 8.4 % |
| Eastern Europe | 6.6 % |
| Middle East | 2.8 % |
| Africa | 2.4 % |
| Asia | 1.2 % |
| Asia-Pacific | 1.1 % |
| Total % of bonds | 100.0 % |
Europe66.6 %
 Italy | 16.5 % |
 United Kingdom | 8.9 % |
 France | 7.4 % |
 Grèce | 6.6 % |
 Ireland | 6.4 % |
 Spain | 4.1 % |
 Germany | 2.6 % |
| Norvège | 2.6 % |
 Austria | 2.5 % |
 Netherlands | 2.2 % |
 Portugal | 1.5 % |
 Switzerland | 1.4 % |
 SanMarino | 1.1 % |
| Suède | 1.1 % |
 Finland | 1.0 % |
 Andorra | 0.9 % |
Key figures
Below are the key figures for the Fund, which will give you a clearer idea of the Fund's management and bond positioning.Exposure Data
Data as of: 30 Aug 2024.Modified Duration1.0
Yield to Maturity5.6 %
Average Coupon4.4 %
Number of Issuers151
Number of Bonds192
Average RatingBBB
Yield to Maturity (YTM) is the estimated annual rate of return expected on a bond if held until maturity and assuming all payments made as scheduled and reinvested at this rate. For perpetual bonds, the next call date is used for computation. Note that the yield shown does not take into account the FX carry and fees and expenses of the portfolio. The portfolio’s YTM is the weighted average individual bonds holdings' YTMs within the portfolio.
The strategy in a nutshell
Discover the Fund’s main features and benefits through the words of the Fund Managers.Fund Management Team
Guillaume Rigeade
Co-Head of Fixed Income, Fund Manager
Eliezer Ben Zimra
Fund Manager
Eliezer and myself are managing this strategy with the objective to offer investors a flexible and diversified investment solution investing across fixed income markets, while hedging the currency risk.
Guillaume Rigeade
Co-Head of Fixed Income, Fund Manager
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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.
The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager.
The information presented above is not contractually binding and does not constitute investment advice. Past performance is not a reliable indicator of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor), where applicable. Investors may lose some or all of their capital, as the capital in the UCI is not guaranteed. Access to the products and services presented herein may be restricted for some individuals or countries. Taxation depends on the situation of the individual. The risks, fees and recommended investment period for the UCI presented are detailed in the KIDs (key information documents) and prospectuses available on this website. The KID must be made available to the subscriber prior to purchase.). The reference to a ranking or prize, is no guarantee of the future results of the UCITS or the manager.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.
Market environment
August was marked by a resurgence of stress in the early days of the month, followed by a return of risk appetite in anticipation of Federal Reserve forthcoming easing.
The slowdown in job creation and the rise in the unemployment rate to 4.3% across the Atlantic were the main catalysts for the risk of a hard landing scenario for the US economy.
Nevertheless, central bankers' more dovish-than-expected stance, coupled with favorable growth (upward revision of US GDP, rebound in retail sales) and inflation figures, enabled the market to recover.
The situation was similar in the eurozone, which benefited from a slowdown in inflation and wage growth, while the PMI leading indicator showed an acceleration in private-sector activity.
Despite risk aversion at the start of the month, credit spreads on the Itraxx Xover index tightened by -10bp, while the euro and US yield curves steepened, with 2-year yields easing by -14bp and -34bp respectively.