Fixed income strategies

Carmignac Portfolio Global Bond

SICAVGlobal marketSRI Fund Article 8
Share Class

LU1299302254

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
Bonds95.6 %
Other4.4 %
Data as of:  28 Mar 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 10.3 %
-
+ 6.0 %
- 3.2 %
+ 1.0 %
From 19/11/2015
To 23/04/2024
Calendar Year Performance 2023
-
- 1.3 %
+ 8.8 %
- 0.4 %
- 4.1 %
+ 8.0 %
+ 4.3 %
- 0.3 %
- 5.9 %
+ 2.7 %
Net Asset Value
110.3 €
Asset Under Management
739 M €
Market
Global market
SFDR - Fund Classification

Article

8
Data as of:  23 Apr 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:  29 Mar 2024.
Fund management team

Abdelak Adjriou

Fund Manager

Market environment

Developed market central bank meetings held no big surprises in March, although the Bank of Japan did bring an end to its negative interest rate policy by raising its key rate from -0.1% to a range of 0%–0.1%. However, the prospect of coordinated rate cutting by the ECB and Fed seems to be receding as US growth and inflation figures remain higher than expected. Despite a dovish tone, the Fed had to revise its growth forecasts upwards. The consumer price index beat traders’ forecasts once again at +3.2% y/y, after another disappointing publication the previous month, while core inflation remains well above target at 3.8%. Other indicators were also robust. These included retail sales, which rebounded in February. Job growth of 275,000 over the month was also surprisingly high. The trend in Europe is more subtle as countries show a little more fiscal orthodoxy to meet EU deficit requirements. However, the publication of leading indicators (PMIs) was encouraging with an improvement in services activity, which is now settled in expansionary territory. The ECB put out a reassuring measure by lowering its inflation forecasts, even though services inflation remains high at 4%. In the end, emerging market central banks adopted a slightly more cautious tone. Although they cut interest rates further in Latin America, most of them are now scaling back their easing, or taking a break.

Performance commentary

The Fund delivered a positive return in March, beating its reference indicator. Our selection of emerging market debt denominated in hard currencies continued to perform well, with Argentina and Romania leading the way. Emerging market debt in local currencies also made a positive contribution, largely thanks to Brazil and Mexico. Corporate bonds were another good source despite historically narrow spreads. We are keeping a high level of protection in this sector. Our low modified duration was beneficial too. However, our currency strategies had a negative impact, especially through our position on the Japanese yen. The US dollar made a positive contribution to the Fund’s absolute return.

Outlook strategy

Macroeconomic indicators suggest that manufacturing activity has bottomed out in the United States, the Eurozone and China. This reinforces our view that the economy will not suffer a hard landing, meaning it is also unlikely that US inflation will return towards target. This makes us all the more optimistic for commodities, especially copper and oil, which should benefit emerging market debt and the currencies of emerging commodity-producing countries. We therefore have positive expectations for the Brazilian real as well as certain Asian currencies such as the won, as AI should lift the South Korean economy. In the developed world, we are also long on the Norwegian krone and have increased our dollar exposure as growth and inflation trends are much stronger across the Atlantic. We are still long on the yen too, as the Bank of Japan started its rate-hiking cycle in March and is battling to shore up its currency. We are long on emerging market debt denominated in hard currencies, but have been taking profits on our best performing positions since the beginning of the year. On the corporate bond front, we increased our hedging as spreads had become expensive. Ultimately, developed market central banks will probably start to cut interest rates, although the ECB’s timing seems clearer with an initial reduction expected this summer. The Fed’s timetable is less certain. For all these reasons we are remaining cautious, and the Fund’s modified duration was around 3.3 at month-end. There are basically three reasons for our approach: we remain optimistic for US real yields given how high they are; we are long on the local debt of emerging markets where a rate-cutting cycle is underway; and we are feeling positive about undervalued currencies that are benefitting from solid economic trends.

Performance Overview

Data as of:  23 Apr 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 24/04/2024

Carmignac Portfolio Global Bond Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Mar 2024.
Europe23.9 %
North America23.6 %
Latin America21.1 %
Eastern Europe12.3 %
Africa7.9 %
Asia-Pacific5.1 %
Middle East4.0 %
Asia2.1 %
Total % of bonds100.1 %
Europe23.9 %
ieIreland
6.8 %
itItaly
5.7 %
gbUnited Kingdom
3.1 %
frFrance
2.9 %
nlNetherlands
1.3 %
Norvège
1.2 %
Grèce
1.0 %
Suède
1.0 %
fiFinland
0.8 %
chSwitzerland
0.1 %
Luxembourg
0.1 %

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 Mar 2024.
Modified Duration3.2
Yield to Worst6.1 %
Yield to Maturity6.1 %
Average Coupon4.5 %
Number of Issuers98
Number of Bonds129
Average RatingBBB+

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.
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.