Fixed income strategies

Carmignac Portfolio Credit

SICAVGlobal marketArticle 6
Share Class

LU1932489690

Access the entire credit spectrum for maximum flexibility
  • Conviction-driven and opportunistic strategies on global credit markets.
  • Non-benchmarked approach with high selectivity for a rigorous portfolio allocation.
Key documents
Asset Allocation
Bonds91.8 %
Other8.2 %
Data as of:  28 Mar 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 37.8 %
-
+ 29.0 %
+ 1.0 %
+ 11.8 %
From 31/12/2019
To 15/04/2024
Calendar Year Performance 2023
-
-
-
-
-
+ 20.9 %
+ 10.8 %
+ 3.4 %
- 12.7 %
+ 10.9 %
Net Asset Value
137.8 €
Asset Under Management
1 354 M €
Market
Global market
SFDR - Fund Classification

Article

6
Data as of:  15 Apr 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.

Carmignac Portfolio Credit 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:  29 Mar 2024.
Fund management team
[Management Team] [Author] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager

Market environment

Central bank meetings held no big surprises in March, although the Bank of Japan did bring an end to its negative interest rate policy by raising its key rate from -0.1% to a range of 0%–0.1%. However, the prospect of coordinated easing by the European Central Bank and the Federal Reserve seems to be receding as US growth and inflation figures remain higher than expected. Despite a dovish tone, the Federal Reserve has been forced to revise its growth forecasts upwards for the cycle ahead. The consumer price index beat traders’ forecasts once again at +3.2% y/y, after another disappointing publication the previous month, while core inflation remains well above target at 3.8%. Other indicators were just as robust, and include retail sales and industrial production, which rebounded in February. Job growth of 275,000 over the month was also surprisingly high. The trend in Europe is more subtle as countries show a little more fiscal orthodoxy to meet EU deficit requirements. However, the publication of leading indicators (PMIs) was encouraging with an improvement in services activity, which is now settled in expansionary territory, and signs that consumer confidence is returning. The ECB put out a reassuring message, lowering its inflation forecasts even though services inflation is stuck at 4% and commodity price pressures seem to be mounting after easing considerably in 2023.

Performance commentary

The Fund delivered a positive absolute return for March, in line with its reference indicator. Our portfolio benefitted from its main investment themes, whether investment grade or high yield, such as financials, energy, special cases and restructuring. Our collateralised loan obligations also had a positive effect.

Outlook strategy

We are still concentrating on our main investment themes through a selection of high yield bonds (e.g. in the energy and financial sectors), which are less sensitive to higher interest rates, and collateralised loan obligations (CLOs) with a variable-rate structure, limiting the negative effects of interest rate volatility and rising default rates. In these volatile conditions, we kept our credit market hedging strategies at 20% to protect the portfolio from the risk of further market dislocation, while focusing on alpha. After remaining low for several years due to the liquidity glut and low cost of capital, default rates will probably return to more normal levels, which we view as a catalyst likely to create real stand-out opportunities. The portfolio’s high carry (over 7%) and attractive credit valuations should mitigate short-term volatility and generate medium- and long-term performance.

Performance Overview

Data as of:  15 Apr 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 17/04/2024

Carmignac Portfolio Credit Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Mar 2024.
Europe71.3 %
Latin America9.9 %
North America7.9 %
Asia3.6 %
Eastern Europe3.5 %
Middle East2.1 %
Africa1.4 %
Asia-Pacific0.4 %
Total % of bonds100.0 %
Europe71.3 %
ieIreland
16.2 %
frFrance
13.5 %
gbUnited Kingdom
13.2 %
itItaly
6.8 %
Grèce
4.3 %
nlNetherlands
3.5 %
esSpain
3.2 %
Norvège
2.5 %
Suède
2.4 %
chSwitzerland
2.0 %
atAustria
1.6 %
ptPortugal
1.3 %
deGermany
0.5 %
Jersey
0.2 %
fiFinland
0.2 %

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:  28 Mar 2024.
Modified Duration3.1
Yield to Worst6.8 %
Yield to Maturity7.1 %
Average Coupon6.6 %
Number of Issuers214
Number of Bonds289
Average RatingBB+

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Managers.
Fund Management Team
[Management Team] [Author] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager
The Fund has access to the entire credit universe, allowing us to explore the potential of multiple liquid credit instruments across the world, from the most to the least risky, and thus find opportunities in different market conditions.
[Management Team] [Author] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager
View Fund's characteristics
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.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.
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.