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New name and strategy for Carmignac Portfolio Capital Plus, becoming Carmignac Portfolio Unconstrained Euro Fixed Income

10.10.2019

London, 10 October 2019: Carmignac has rebranded the Carmignac Portfolio Capital Plus fund to better reflect its new management style and investment strategy.

Now called Carmignac Portfolio Unconstrained Euro Fixed Income since 30 September 2019, the fund invests in global fixed income markets. Non-euro denominated investments will systematically be hedged back to the Euro, hence the addition of “Euro” in the fund’s name.

Co-managed by Guillaume Rigeade and Eliezer Ben Zimra, who joined Carmignac on 9 July 2019, the fund is Carmignac’s second largest within its fixed income range, with an AUM of €895m at the end of September 2019. They bring a solid expertise and extensive experience on fixed income asset allocation. Their top-down and bottom-up investment approach is well suited to Carmignac’s investment philosophy and fixed income team, which now numbers 13 people under the leadership of Rose Ouahba.

Guillaume Rigeade, co-fund manager of Carmignac Portfolio Unconstrained Euro Fixed Income explains: “We want to capture fixed income opportunities around the world, while hedging any currency risk on our foreign investments. Our investment process will accordingly rest on our three historic pillars: allocation to the various fixed income market segments, active and flexible management of modified duration, and bond-picking through careful selection of issuers, issues and instruments.”

Eliezer Ben Zimra, co-fund manager adds: “Our approach is fully in line with Carmignac’s DNA. Like the firm’s other fund managers, we consistently pursue a non-benchmarked strategy aiming to generate medium and long-term risk-adjusted returns for our clients while keeping our volatility in line with that of the market.”

Carmignac Portfolio Unconstrained Euro Fixed Income is part for our Unconstrained fund range, making it by nature global, flexible and non-benchmarked. This approach has been core to Carmignac’s management style over the past 30 years, allowing fund managers to favour one asset class over another whenever necessary. As a result of the change in strategy, the fund’s Synthetic Risk and Reward Indicator (SRRI) increases from 2 to 3 which puts the fund somewhere between Carmignac Sécurité (a low-duration European bond fund) with a SRRI of 2 and Carmignac Portfolio Unconstrained Global Bond (an international bond fund with a wider duration range) with a SRRI of 4.

The fund uses an international fixed income index, ICE BofAML Euro Broad Market Index calculated with coupons reinvested, as its reference indicator. The changes are intended to strengthen the fund’s risk/return profile, with a recommended minimum investment period of 3 years, up from 2 years previously.