Fixed income strategies

Carmignac Portfolio Flexible Bond

SICAVGlobal marketSRI Fund Article 8
Share Class

LU0992631217

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
Bonds76.4 %
Other23.6 %
Data as of:  28 Jun 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 19.0 %
+ 16.7 %
+ 11.7 %
+ 0.1 %
+ 7.6 %
From 15/11/2013
To 15/07/2024
Calendar Year Performance 2023
+ 2.3 %
- 0.2 %
+ 0.5 %
+ 2.0 %
- 3.0 %
+ 5.4 %
+ 9.7 %
+ 0.1 %
- 7.7 %
+ 5.1 %
Net Asset Value
1190.04 €
Asset Under Management
1 371 M €
Market
Global market
SFDR - Fund Classification

Article

8
Data as of:  15 Jul 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:  28 Jun 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

  • US inflationary pressure eased a little in June, with the rate falling to 3.3%, but momentum remained strong in the labour market and in services where activity picked up again.

  • At its FOMC meeting, the US Federal Reserve therefore left its interest rates unchanged, with members predicting a cut by the end of this year.

  • The ECB knocked 25 bps off its key interest rate at its monthly meeting, but reiterated that any future cuts will be data-dependent.

  • However, risk aversion was high as the political spectrum became more polarised in European elections, causing spreads on the Itraxx Xover index to widen by 23 bps.

  • The dissolution of France’s National Assembly and rise of opposition groups revived fears about public finances, pushing the spread between French and German bond yields above the 80 bps threshold.

Performance commentary

  • The Fund delivered a positive return in June despite fixed-income volatility.

  • Our stock picking in corporate bond issuers made a positive contribution to performance despite some rather adverse market conditions.

  • The Fund’s modified duration was stable during the month, the main change being a reduction in our short position on Japanese bonds.

  • We also increased our tactical hedging on credit indices during the European elections.

Outlook strategy

  • Global economies should hold firm over the coming months as stimulus remains high at a time of military and trade conflict.

  • This should underpin growth, suggesting that we should keep gross exposure to credit strategies high.

  • However, inflation’s return towards target levels could be a source of disappointment, and the market’s optimism justifies the continued use of inflation-linked instruments within the portfolio.

  • We are still convinced about the ability of short-term bonds to outperform given that real yields remain high and growth is robust.

Performance Overview

Data as of:  15 Jul 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 16/07/2024

Carmignac Portfolio Flexible Bond Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Jun 2024.
Europe66.3 %
North America11.3 %
Latin America8.4 %
Eastern Europe6.8 %
Middle East3.1 %
Africa2.4 %
Asia1.5 %
Asia-Pacific0.3 %
Total % of bonds100.0 %
Europe66.3 %
itItaly
15.6 %
gbUnited Kingdom
9.0 %
ieIreland
8.1 %
frFrance
7.4 %
Grèce
6.7 %
esSpain
3.6 %
Norvège
2.7 %
deGermany
2.5 %
atAustria
2.4 %
nlNetherlands
2.1 %
ptPortugal
1.5 %
Suède
1.0 %
smSanMarino
1.0 %
fiFinland
1.0 %
chSwitzerland
0.9 %
adAndorra
0.8 %

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 Jun 2024.
Modified Duration3.0
Yield to Maturity6.0 %
Average Coupon4.6 %
Number of Issuers152
Number of Bonds195
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
[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.