Fixed income strategies

Carmignac Portfolio Flexible Bond

SICAVGlobal marketSRI Fund Article 8
Share 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.
Asset Allocation
Bonds79.5 %
Other20.5 %
Data as of:  30 Apr 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 28.5 %
+ 11.2 %
+ 11.5 %
- 1.7 %
+ 7.0 %
From 14/12/2007
To 23/05/2024
Calendar Year Performance 2023
+ 2.0 %
- 0.7 %
+ 0.1 %
+ 1.7 %
- 3.4 %
+ 5.0 %
+ 9.2 %
-
- 8.0 %
+ 4.7 %
Net Asset Value
1285.3 €
Asset Under Management
1 369 M €
Market
Global market
SFDR - Fund Classification

Article

8
Data as of:  23 May 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 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 Apr 2024.
Fund management team
[Management Team] [Author] Rigeade Guillaume

Guillaume Rigeade

Co-Head of Fixed Income, Fund Manager
[Management Team] [Author] Eliezer Ben Zimra

Eliezer Ben Zimra

Fund Manager

Market environment

Investors lowered their expectations of key rate cuts at the Federal Reserve this year, pushing up yields such as the US 2yr, which gained 34 bps over the month to pass the 5% mark. This readjustment happened gradually over April as inflation figures were particularly solid across the Atlantic. The consumer price index in particular surged to +3.5% y/y. The roots of inflation are keeping Fed members on their guard as retail sales and employment data point towards a no-landing scenario for the US economy. Desynchronisation continues with the planets aligning in the Eurozone where inflation eased further to +2.4% y/y, allowing the ECB to take a much more dovish tone. The economic recovery is more visible in leading indicators as well as growth figures, which are beating the consensus forecast. However, this uncoupling has not helped European yields, which have followed the same upward trajectory as their US equivalents. The 10-year Bund yield gained 29 bps in April. The geopolitical situation has deteriorated in the Middle East after Iran’s bombardment of Israel, fuelling risk aversion among investors as well as inflation, with commodity prices surging.

Performance commentary

Our Fund fared much better than its reference indicator over April, in hostile conditions for government and corporate bond markets. This lead resulted from the resilience of our performance drivers and the Fund’s low modified duration. Our buy-and-hold strategies keep adding to the portfolio’s returns, while our inflation-linked instruments are benefitting from the global economy’s more upward trajectory and the deterioration of the geopolitical situation. We scaled back our credit hedging in April after spreads widened. We also increased exposure to US short-term yields and emerging market debt through positions in Mexico and Brazil.

Outlook strategy

The main developed economies’ robustness is paradoxically good but also slightly worrying news for the markets, as it results solely from countries’ new budget deficit paradigm. The increase in borrowing has created imbalances that are starting to weigh on bonds, as fiscal policy contradicts the monetary policy goals of the main central banks. This no-landing scenario for the economy also rules out any prospect of inflation returning to target, as economic data continues to amaze investors. On top of this, commodity prices – which had been the main factors behind disinflation – have surged, and will probably now weigh on producer and consumer price indices. This economic outlook suggests we should be keeping the portfolio’s modified duration low, with a preference for the short end of yield curves. We are remaining short on the long end, for which abundant supply is likely to meet lower demand at a time when central banks are reducing the size of their balance sheets. We are also short on Japanese government bonds as the BoJ started its rate-hiking cycle in March, and is battling to shore up its currency. On corporate bond markets, we are keeping high gross exposure to sub-segments that offer good carry, such as subordinated financial debt and structured credit, while consolidating our net exposure through cheap hedging to cushion any exogenous shocks on credit markets. The weighting of our inflation-linked strategies is still high, as these should benefit from raised inflation expectations and provide good cover from any increase in geopolitical risk.

Performance Overview

Data as of:  23 May 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 25/05/2024

Carmignac Portfolio Flexible Bond Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Apr 2024.
Europe66.3 %
North America10.6 %
Latin America8.7 %
Eastern Europe7.0 %
Middle East3.2 %
Africa2.4 %
Asia1.5 %
Asia-Pacific0.3 %
Total % of bonds100.0 %
Europe66.3 %
itItaly
17.0 %
gbUnited Kingdom
9.0 %
ieIreland
8.7 %
frFrance
7.7 %
Grèce
6.4 %
deGermany
3.1 %
Norvège
2.8 %
esSpain
2.8 %
nlNetherlands
2.2 %
atAustria
1.6 %
ptPortugal
1.5 %
smSanMarino
1.1 %
Suède
0.9 %
chSwitzerland
0.9 %
adAndorra
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 Apr 2024.
Modified Duration1.3
Yield to Worst5.2 %
Yield to Maturity5.5 %
Average Coupon4.6 %
Number of Issuers148
Number of Bonds190
Average RatingBBB-

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] Rigeade Guillaume

Guillaume Rigeade

Co-Head of Fixed Income, Fund Manager
[Management Team] [Author] Eliezer Ben Zimra

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.
[Management Team] [Author] Rigeade Guillaume

Guillaume Rigeade

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.
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.