Fixed income strategies

Carmignac Portfolio Credit

SICAVGlobal marketArticle 6
Share Class

LU1623762843

Access the entire credit spectrum for maximum flexibility
  • Conviction-driven and opportunistic strategies on global credit markets.
  • Non-benchmarked approach with high selectivity for a rigorous portfolio allocation.
Key documents
Asset Allocation
Bonds96.1 %
Other3.9 %
Data as of:  29 Feb 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 40.3 %
-
+ 29.2 %
+ 0.3 %
+ 12.9 %
From 31/07/2017
To 26/03/2024
Calendar Year Performance 2023
-
-
-
+ 1.8 %
+ 1.7 %
+ 20.9 %
+ 10.4 %
+ 3.0 %
- 13.0 %
+ 10.6 %
Net Asset Value
140.3 €
Asset Under Management
1 328 M €
Market
Global market
SFDR - Fund Classification

Article

6
Data as of:  26 Mar 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 Credit 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:  29 Feb 2024.
Fund management team
[Management Team] [Author] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager

Market environment

February was a turning point for the disinflation trend that had been shoring up the markets over previous months. Growth figures brought more pleasant surprises on both sides of the Atlantic, but the (dis)inflation trend disappointed investors. While credit indices continued to benefit from growth being stronger than anticipated, sovereign assets performed much less glowingly, with traders forced to lower their expectations of central bank rate cuts in 2024. In the United States, leading and lagging indicators seem to be converging towards a single benign growth scenario. Both the manufacturing and service components of PMIs improved, and consumer confidence picked up further in February, showing businesses’ and households’ shared enthusiasm about the economic outlook. This US economic exceptionalism results from the knock-on effects of a growing labour market, on which job reports were surprisingly positive once again. However, this frenetic growth seems to impinge on the immaculate disinflation scenario that had been underpinning risk appetite. While headline inflation continues to benefit from the sharp drop in commodity prices, core inflation disappointed investors, sticking at +3.9% y/y, while the services price index rebounded to +5.4% y/y. The US Federal Reserve chair therefore took a less dovish than expected tone, driving up yields. The 10-year Treasury yield gained 34 bps over the month, reversing last December’s bond rally. Albeit to a lesser extent, the Eurozone also showed signs of progress with leading indicators still rebounding as the services sector expands. Inflation slowed by less than expected due to the robust services component of core inflation. While wage growth seems to have peaked, the figure of +4.5% y/y remains well above the European Central Bank’s inflation target. This combination of firmer growth and stickier inflation led to the 10-year Bund yield gaining 25 bps, while risky assets made further progress as high yield spreads narrowed by 23 bps. Japan’s complacent monetary policy seems even more likely to end with the publication of higher-than-expected core inflation, above the 2% mark for the 11th month in a row.

Performance commentary

The Fund delivered a positive absolute return and fared much better than its reference indicator in February. Our portfolio benefitted from its main investment themes, whether investment grade or high yield, such as financials, energy, special cases and restructuring. Our collateralised loan obligations also had a positive effect.

Outlook strategy

We are still concentrating on our main investment themes through a selection of high yield bonds (e.g. in the energy and financial sectors), which are less sensitive to higher interest rates, and collateralised loan obligations (CLOs) with a variable-rate structure, limiting the negative effects of interest rate volatility and rising default rates. In these volatile conditions, we kept our credit market hedging strategies at 13% to protect the portfolio from the risk of further market dislocation, while focusing on alpha. After remaining low for several years due to the liquidity glut and low cost of capital, default rates will probably return to more normal levels, which we view as a catalyst likely to create real stand-out opportunities. The portfolio’s high carry (over 7%) and attractive credit valuations should mitigate short-term volatility and generate medium- and long-term performance.

Performance Overview

Data as of:  26 Mar 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 28/03/2024

Carmignac Portfolio Credit Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  29 Feb 2024.
Europe70.7 %
Latin America9.8 %
North America8.1 %
Eastern Europe3.6 %
Asia3.5 %
Middle East2.4 %
Africa1.5 %
Asia-Pacific0.4 %
Total % of bonds100.0 %
Europe70.7 %
ieIreland
16.1 %
frFrance
13.6 %
gbUnited Kingdom
13.2 %
itItaly
7.0 %
Grèce
4.0 %
esSpain
3.2 %
nlNetherlands
3.1 %
Suède
2.4 %
Norvège
2.4 %
chSwitzerland
2.0 %
atAustria
1.2 %
ptPortugal
0.9 %
fiFinland
0.7 %
deGermany
0.6 %
dkDenmark
0.4 %

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:  29 Feb 2024.
Modified Duration3.5
Yield to Worst7.3 %
Yield to Maturity7.6 %
Average Coupon6.5 %
Number of Issuers219
Number of Bonds293
Average RatingBB+

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] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager
The Fund has access to the entire credit universe, allowing us to explore the potential of multiple liquid credit instruments across the world, from the most to the least risky, and thus find opportunities in different market conditions.
[Management Team] [Author] Verle Pierre

Pierre Verlé

Head of Credit, 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.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.
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.