Flash Note
What does it mean?
An active and global investment approach, that relies on great flexibility in managing exposures through a non-benchmarked philosophy.
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FLEXIBLE ALLOCATION
Pertinent tool kit to manage exposures through wide modified duration brackets & use of credit derivatives
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GLOBAL INVESTMENT UNIVERSE
Developed and emerging markets Sovereign and corporate bonds
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NON-BENCHMARKED APPROACH
No bias to any curves, regions or economic sectors
What is the benefit?
An unconstrained approach provides our Funds the ability to navigate extremely diverse market environments (see our proof of concept below).
For whom?
For investors looking for bond performance drivers at a time when yields are extremely low and subject to volatility spikes. Our Unconstrained Fixed Income Funds may be suitable for investors seeking higher yields outside Europe, which is undergoing historical financial repression, since it aims to benefit from both rising and declining rates and to seize bottom-up opportunities through our disciplined risk management framework.
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Carmignac Portfolio Unconstrained Credit
Investment Universe:
Global credit markets
Main Limits1:
HY allocation < 50%
EM allocation < 25%
Structured Credit < 20%
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Carmignac Portfolio Unconstrained Euro Fixed Income
Investment Universe:
International bonds Euro hedged
Main Limits1:
Modified duration -3 to +8
HY corporate bonds + EM bonds < 50%
Structured Credit < 10% -
Carmignac Portfolio Unconstrained Global Bond
Investment Universe:
International bonds
Main Limits1:
Modified duration -4 to +10
Average minimum rating ≥ BBB-
Structured Credit < 10%
Flexible allocation
Our Unconstrained Fixed Income Funds navigate different market conditions thanks to a pertinent tool kit. For example, wide modified duration brackets that can go from negative to positive territory are used with the objective of generating positive performance even in a rising rate environment and containing the downside when facing market risks.
Global Investment Universe
Our Unconstrained Funds deploy a global fixed income strategy which exploits a broad and diversified investment universe to identify opportunities across the globe. Our Fund Managers seek to implement interest rate, credit and, for those authorized to do so, currency strategies (Carmignac Portfolio Unconstrained Global Bond) in both developed and emerging markets.
Non-benchmarked approach
Our non-benchmarked investment approach enables us to build high-conviction portfolios that are based exclusively on our top-down views. Having latitude in terms of regions, sectors and asset classes gives us the opportunity to unearth best performance drivers in both bull and bear markets.
