FP Carmignac Unconstrained Global Bond: weekly positioning through market turbulences

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FP Carmignac Unconstrained Global Bond

Higher overall modified duration compared to last week, which stands currently close to 8.3; The Fund’s average YTM went from 1.7% beginning of March to 3.3% now.

Rates component

  • Reinforced allocation to core rates, still diversified between the US, Germany, Japan, Australia and Singapore. This week, we took more duration risk by switching from our 3-year Australian bonds to 30-year maturity and we reinforced our sensitivity to German sovereign yields.
  • Implemented a long position on German inflation-linked bond.
  • Maintained our non-core government exposure since last week, with only a small exposure to Greece.
  • Reduced our cash & cash equivalents exposure but still at high levels.

    Credit component

  • Maintained indices CDS (European Xover markets) protections since last week. We still avoid expensive market beta and focus in few specific situations. We even started to reinforce our physical allocation to some idiosyncratic names where we are well paid for the fundamental cost of risk on both primary and secondary markets.

    Currency component

  • Limited currency risk in the Fund, as we still favor the euro and to a lesser extent, the yen. We also bought some EM Asian currencies such as in Singapore and Indonesia where we see attractive valuations.

FP Carmignac Global Bond

Main risks of the Fund

CREDIT: Credit risk is the risk that the issuer may default.

INTEREST RATE: Interest rate risk results in a decline in the net asset value in the event of changes in interest rates.

CURRENCY: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency, either through direct investment or the use of forward financial instruments.

DISCRETIONARY MANAGEMENT: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.

The Fund presents a risk of loss of capital.

[Scale risk] 4/2 years_EN