Fixed income strategies

Carmignac Portfolio Sécurité

SICAVEuropean marketSRI Fund Article 8
Share Class

LU1299306321

Flexible, low duration solution to navigate European fixed income markets
  • Low duration euro fixed income Fund.
  • Flexible and active approach with a modified duration range from -3 to +4.
Asset Allocation
Bonds79.4 %
Other20.6 %
Data as of:  28 Mar 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
2 years
Cumulative Performance since launch
+ 5.3 %
-
+ 6.0 %
+ 0.6 %
+ 5.9 %
From 19/11/2015
To 11/04/2024
Calendar Year Performance 2023
-
- 0.3 %
+ 1.9 %
-
- 3.1 %
+ 3.6 %
+ 2.2 %
+ 0.1 %
- 4.5 %
+ 4.0 %
Net Asset Value
105.3 €
Asset Under Management
1 283 M €
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  11 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 Sécurité 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
[Management Team] [Author] Allier Marie Anne

Marie-Anne Allier

Fund Manager
[Management Team] [Author] Guedy Aymeric

Aymeric Guedy

Fund Manager, Analyst

Market environment

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 easing by the European Central Bank and the Federal Reserve seems to be receding as US growth and inflation figures remain higher than expected. Despite a dovish tone, the Federal Reserve has been forced to revise its growth forecasts upwards for the cycle ahead. 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 just as robust, and include retail sales and industrial production, 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, and signs that consumer confidence is returning. The ECB put out a reassuring message, lowering its inflation forecasts even though services inflation is stuck at 4% and commodity price pressures seem to be mounting after easing considerably in 2023.

Performance commentary

As core yields eased a little and credit markets moved upwards, our emphasis on buy-and-hold strategies, especially for credit, helped the Fund deliver a positive return and fare much better than its reference indicator. Our allocation to corporate and financial bonds, and to a lesser extent peripheral sovereign debt, raised monthly performance. The portfolio’s selection of collateralised loan obligations and exposure to money market instruments continues to have a positive impact.

Outlook strategy

In this scenario of a soft landing for the European economy, mainly thanks to an improvement in real income and to inflation gradually moving back towards the central bank’s target, paving the way for an initial rate cut in June, the portfolio’s modified duration remains moderate at around 2, mainly involving inflation and curve steepening strategies, and a significant credit allocation. We still view credit, which accounts for nearly two thirds of our portfolio, as an attractive performance driver from a buy-and-hold perspective, and are keeping some tactical hedging given the valuation levels now reached. Our exposure is concentrated on short-dated investment grade issues, with financials, energy and CLOs our three strongest convictions. We gradually built up our curve steepening strategy over the month (long 5-year vs short 30-year in Germany) as the ECB is getting closer to a first rate cut, which should re-steepen yield curves that are looking flat from a historical perspective. We are keeping exposure to real yields and breakeven inflation rates, as this could benefit from any disruption to the disinflation trend at a time of political and geopolitical uncertainty. The portfolio’s average yield was around 4.7% at month-end, at the top of its 10-year range, and this should drive performance over the year ahead.

Performance Overview

Data as of:  11 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.Until 31 December 2020, the reference indicator was the Euro MTS 1-3 years. Performances are presented using the chaining method.The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Source: Carmignac at 13/04/2024

Carmignac Portfolio Sécurité Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Mar 2024.
Europe76.9 %
North America12.7 %
Eastern Europe9.1 %
Asia-Pacific1.0 %
Latin America0.3 %
Total % of bonds100.0 %
Europe76.9 %
itItaly
17.0 %
esSpain
13.3 %
ieIreland
12.0 %
frFrance
8.6 %
gbUnited Kingdom
4.5 %
nlNetherlands
4.3 %
deGermany
3.3 %
Grèce
2.5 %
chSwitzerland
2.1 %
Norvège
1.6 %
ptPortugal
1.6 %
Suède
1.4 %
beBelgium
1.2 %
atAustria
1.1 %
adAndorra
0.8 %
dkDenmark
0.4 %
fiFinland
0.3 %
smSanMarino
0.3 %
Iceland
0.3 %
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 Duration2.0
Yield to Worst4.2 %
Yield to Maturity4.5 %
Average Coupon3.2 %
Number of Issuers162
Number of Bonds252
Average RatingA-

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] Allier Marie Anne

Marie-Anne Allier

Fund Manager
[Management Team] [Author] Guedy Aymeric

Aymeric Guedy

Fund Manager, Analyst
For over 35 years, we have maintained our active and conviction-driven approach, while being able to adapt to different market configurations. This is what we want to continue offering to investors.
[Management Team] [Author] Allier Marie Anne

Marie-Anne Allier

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.