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
Bonds93.2 %
Other6.8 %
Data as of:  30 Apr 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 42.7 %
-
+ 27.3 %
+ 1.2 %
+ 12.6 %
From 31/07/2017
To 23/05/2024
Calendar Year Performance 2023
-
-
-
+ 1.8 %
+ 1.7 %
+ 20.9 %
+ 10.4 %
+ 3.0 %
- 13.0 %
+ 10.6 %
Net Asset Value
142.7 €
Asset Under Management
1 393 M €
Market
Global market
SFDR - Fund Classification

Article

6
Data as of:  23 May 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:  30 Apr 2024.
Fund management team
[Management Team] [Author] Verle Pierre

Pierre Verlé

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

Market environment

Investors lowered their expectations of key rate cuts at the Federal Reserve this year, pushing up yields such as the US 2yr, which gained 34 bps over the month to pass the 5% mark. This readjustment happened gradually over April as inflation figures were particularly solid across the Atlantic. The consumer price index in particular surged to +3.5% y/y. The roots of inflation are keeping Fed members on their guard as retail sales and employment data point towards a no-landing scenario for the US economy. Desynchronisation continues with the planets aligning in the Eurozone where inflation eased further to +2.4% y/y, allowing the ECB to take a much more dovish tone. The economic recovery is more visible in leading indicators as well as growth figures, which are beating the consensus forecast. However, this uncoupling has not helped European yields, which have followed the same upward trajectory as their US equivalents. The 10-year Bund yield gained 29 bps in April. The geopolitical situation has deteriorated in the Middle East after Iran’s bombardment of Israel, fuelling risk aversion among investors as well as inflation, with commodity prices surging.

Performance commentary

The Fund’s absolute return was very positive, whereas that of its reference indicator was negative. 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 19% 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:  23 May 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 27/05/2024

Carmignac Portfolio Credit Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Apr 2024.
Europe68.3 %
North America10.0 %
Latin America9.9 %
Asia5.3 %
Eastern Europe3.2 %
Middle East1.8 %
Africa1.3 %
Asia-Pacific0.4 %
Total % of bonds100.2 %
Europe68.3 %
ieIreland
14.3 %
frFrance
13.5 %
gbUnited Kingdom
11.4 %
itItaly
6.9 %
Grèce
4.8 %
esSpain
3.7 %
nlNetherlands
3.4 %
Suède
2.5 %
Norvège
2.5 %
chSwitzerland
1.9 %
atAustria
1.5 %
ptPortugal
1.2 %
deGermany
0.5 %
Jersey
0.2 %
fiFinland
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:  30 Apr 2024.
Modified Duration3.2
Yield to Worst7.6 %
Yield to Maturity7.9 %
Average Coupon6.6 %
Number of Issuers208
Number of Bonds286
Average RatingBB+
Yield to Maturity & Yield to Worst : Calculated at the fixed income bucket level.

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.