Fixed income strategies

Carmignac Portfolio Global Bond

SICAVGlobal marketSRI Fund Article 8
Share Class

LU1623762769

A global, flexible and macroeconomic approach to fixed income markets
  • A global investment universe to identify and capitalise on macroeconomic trends across the globe.
  • Access to a wide range of performance drivers available in developed and emerging markets.
Asset Allocation
Bonds92.2 %
Other7.8 %
Data as of:  28 Jun 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 11.6 %
0.0 %
+ 8.2 %
+ 0.8 %
+ 3.3 %
From 26/07/2017
To 18/07/2024
Calendar Year Performance 2023
-
-
-
- 0.2 %
- 3.2 %
+ 8.8 %
+ 5.6 %
+ 0.5 %
- 3.7 %
+ 3.9 %
Net Asset Value
111.71 €
Asset Under Management
£
Market
Global market
SFDR - Fund Classification

Article

8
Data as of:  18 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.

Carmignac Portfolio Global 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

Abdelak Adjriou

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.

  • In China, economic activity is showing signs of weakness, with industrial production and investment both slowing. The real estate sector is in crisis with investment and house prices falling.

  • Meanwhile, elections in a number of emerging countries made EM assets more volatile, although the situation has subsequently improved. Spreads widened

  • by 23bps, as reflected in the Itraxx Xover. However, bonds appreciated with 10-year yields down 10 bps in the United States and 16 bps in Germany.

Performance commentary

  • The Fund ended the month with an absolute return that was positive but smaller than that of its reference indicator.

  • The main factors behind this performance were our long positioning in the energy sector and debt in local currency, especially in Mexico following the post-election bounce.

  • Our Itraxx Xover hedging also raised the Fund’s performance as credit spreads widened.

  • However, our currency strategies had a negative impact on Fund performance, particularly our long positions on the Japanese yen and Mexican peso.

Outlook strategy

  • In the current environment, with the US economy slowing, we are keeping duration relatively high at around 4.5,

  • Having strengthened our long positions on the short end of the US curve. We have also introduced some steepening strategies for the European curve by opening short positions on French Treasury bonds (OATs).

  • For emerging market debt in local currencies, we still prefer countries like Mexico and Brazil where real short-term interest rates remain extremely high.

  • We took advantage of the correction in Mexican local debt after the elections, strengthening our long position to benefit from the rally.

  • At a foreign exchange level, the Fund opened a long position on the Norwegian krone and Australian dollar. The Fund also remains long on the Indian rupee, Brazilian real and Chilean peso.

  • The Fund continues to be long on emerging market debt denominated in hard currencies within the EMEA region and Latin America.

Performance Overview

Data as of:  18 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 19/07/2024

Carmignac Portfolio Global Bond Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Jun 2024.
Latin America34.6 %
Europe31.0 %
North America9.2 %
Africa9.2 %
Eastern Europe6.4 %
Middle East6.3 %
Asia-Pacific2.4 %
Asia1.0 %
Total % of bonds100.0 %
Latin America34.6 %
mxMexico
20.9 %
République Dominicaine
4.4 %
coColombia
3.0 %
Brésil
2.1 %
arArgentina
0.9 %
clChile
0.6 %
gtGuatemala
0.5 %
Paraguay
0.5 %
Ecuador
0.5 %
Bahamas
0.5 %
Pérou
0.3 %
crCosta Rica
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 Jun 2024.
Modified Duration3.6
Yield to Maturity7.0 %
Average Coupon5.2 %
Number of Issuers103
Number of Bonds135
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 Manager.
Fund Management Team

Abdelak Adjriou

Fund Manager
The flexibility of our investment process allows us to take advantage of all performance drivers offered by the fixed income universe, and thus to build a diversified portfolio based on solid convictions.

Abdelak Adjriou

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.