Carmignac Portfolio EM Debt
Luxembourg SICAV sub-fundEmerging marketsArticle 8LU2427320812
- Access a wide range of performance drivers across the emerging universe: local debt, external debt and currencies.
- A conviction-driven and non-benchmarked philosophy to uncover the attractive opportunities emerging markets have to offer.
- Environmental, social and governance approach integrated into the investment process.
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To 01/09/2026
Article
The strategy in a nutshell
Alessandra ALECCI
The Fund is best suited for fixed income investors looking for higher returns than those offered by developed markets, by taking advantage of the emerging universe potential.
Alessandra ALECCI
Carmignac Portfolio EM Debt fund performance
Our monthly comments
Data as of: Jul 31, 2026.Alessandra ALECCI
Performance commentary
- Over the month, the Fund delivered a negative performance, broadly in line with its benchmark. While hard currency debt and currencies proved resilient, performance was mainly impacted by local currency debt.
- Local currency debt was the main detractor from performance as the broad rise in global bond yields weighed on emerging market rates, particularly in Eastern Europe. Our positions in Poland, Hungary and the Czech Republic were among the largest negative contributors over the month.
- Despite a challenging environment marked by heightened geopolitical tensions, hard currency debt proved resilient and made a modest positive contribution to performance, supported by our sovereign positions in Angola, Côte d'Ivoire and Venezuela. In addition, selected corporate issuers in the energy sector also contributed positively.
- Currencies made a modest positive contribution to performance despite most emerging market currencies coming under pressure during the month. Gains were primarily driven by our selection Latin American currencies, notably the Colombian peso and Brazilian real, as well as the South Korean won.
Outlook strategy
- Against a backdrop of renewed geopolitical tensions and higher sovereign bond yields, we reduced the portfolio's modified duration from 6.6 to 3.4, primarily through local currency debt. Despite this more cautious positioning, we remain constructive on emerging market debt, supported by resilient fundamentals and attractive carry.
- In local currency debt, we reduced exposure to South African local bonds, given persistent inflationary pressures, the hawkish stance of the central bank and the country’s sensitivity to higher oil prices. We also halved our Brazilian local debt exposure.
- Hard currency debt remains our highest-conviction investment theme. We maintain our core positions in Côte d'Ivoire, Turkey and Egypt, while preserving credit hedges through high-yield CDS indices and selected sovereign CDS.
- To protect the portfolio against a higher-for-longer rate environment particularly in developed economies and persistent inflation risks, we maintain our inflation strategies while adding short positions in selected developed market sovereign bonds.
- In currencies, we increased our euro exposure from 30% to 60%, while maintaining no exposure to the US dollar. During the month, we reduced exposure to Asian currencies, which are more vulnerable as net oil importers, while increasing allocations to selected Latin American and commodity-linked currencies, notably the Kazakh tenge.
Performance Overview
Data as of: Sep 1, 2026.Carmignac Portfolio EM Debt Portfolio overview
Asset Allocation
Data as of: Jul 31, 2026.| Bonds | 88.1 % |
| Cash, Cash Equivalents and Derivatives Operations | 8.7 % |
| Money Market | 3.2 % |
| Credit Default Swap | -21.0 % |
Key figures
Exposure Data
Data as of: Jul 31, 2026.Articles that may interest you
Carmignac Portfolio EM Debt: Letter from the Fund Managers - Q2 2026
Emerging Market Debt: Resilience in a more volatile world
View on rates: Uneven policies, selective duration
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Market environment