Carmignac Portfolio Flexible Bond
Luxembourg SICAV sub-fundGlobal marketArticle 8LU2427321547
- A conviction-driven Fund aiming to seize global bond markets opportunities while systematically hedging the currency risk.
- An investment process based on a top-down asset allocation and a bottom-up implementation of interest rate and credit strategies.
- A flexible and non-benchmarked philosophy to navigate through diverse market environments, across the world.
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To 22/10/2026
Article
The strategy in a nutshell
![[Management Team] [Author] Rigeade Guillaume](https://carmignac.imgix.net/uploads/NextImage/0001/18/%5BManagement-Team%5D-Rigeade-Guillaume.png?auto=format%2Ccompress&fit=fill&w=3840)
![[Management Team] [Author] Eliezer Ben Zimra](https://carmignac.imgix.net/uploads/NextImage/0001/18/%5BManagement-Team%5D-Ben-Zimra-Eliezer.png?auto=format%2Ccompress&fit=fill&w=3840)
Eliezer and myself are managing this strategy with the objective to offer investors a flexible and diversified investment solution investing across fixed income markets, while hedging the currency risk.
Carmignac Portfolio Flexible Bond fund performance
Our monthly comments
Data as of: Sep 30, 2026.Performance commentary
- The fund delivered a slightly negative return in September while significantly outperforming its reference indicator.
- In this challenging environment, our overlay strategies contributed positively, particularly our short positions on French government bonds and US rates, which generated solid performance over the month.
- Conversely, our exposure to emerging market bonds and corporate credit were negative contributors in September but were partially offset by our credit overlay strategies, which provided effective protection in a risk-off environment.
- We took advantage of the sharp sell-off in rates to strengthen long positions at the front end of the euro yield curve while reducing our hedges on the US curve. As a result, the fund’s modified duration increased from 0.6 to 3.3 over the course of the month.
Outlook strategy
- The current environment remains particularly supportive of a flexible fixed income strategy. While valuations continue to appear rich across several asset classes, we expect market volatility to remain elevated in the coming months, creating attractive investment opportunities.
- Inflation risks remain skewed to the upside on both sides of the Atlantic, driven by US tariff and immigration policies, as well as ongoing disruptions in energy markets stemming from geopolitical tensions in the Middle East.
- Although markets have significantly repriced the front end of both European and US yield curves, we believe the long end remains vulnerable to further adjustment. The continued deterioration in fiscal dynamics across developed economies should increasingly translate into higher term premia and, ultimately, higher long-term interest rates.
- Against this backdrop, we have adopted a more constructive stance on the front end of the euro yield curve, which should benefit from lower short-term yields should the ECB prove more dovish than currently priced by the market. At the same time, we maintain short positions at the long end of both the euro and US sovereign yield curves, reflecting our cautious view on long-term rates.
- We also maintain a meaningful allocation to inflation-linked securities as a hedge against more persistent inflationary pressures. Within credit, we continue to favour overlay strategies focused on the high-yield segment, where current valuations leave limited room for disappointment and appear increasingly vulnerable to a renewed widening in credit spreads.
Performance Overview
Data as of: Oct 22, 2026.Carmignac Portfolio Flexible Bond Portfolio overview
Asset Allocation
Data as of: Sep 30, 2026.| Bonds | 72.1 % |
| Money Market | 18.7 % |
| Cash, Cash Equivalents and Derivatives Operations | 9.0 % |
| Equities | 0.2 % |
| Credit Default Swap | -18.5 % |
Key figures
Exposure Data
Data as of: Sep 30, 2026.Articles that may interest you
Carmignac P. Flexible Bond: Letter from the Fund Managers - Q3 2026
Carmignac P. Flexible Bond: Letter from the Fund Managers - Q2 2026
FOR PROFESSIONAL CLIENTS ONLY
This document is issued by, or communicated on behalf of, Carmignac Middle East Ltd, a company incorporated under the laws of the Dubai International Financial Centre with company number CL 13413 registered at GD-PB-04-01-OF-01-0, Level 1, DIFC Fund Centre, Level POD, Gate District Precinct Building 04, Dubai International Financial Centre, Dubai, United Arab Emirates and regulated by the Dubai Financial Services Authority under reference number F013638.
This document is intended solely for Professional Clients and Market Counterparties, as defined under the applicable rules of the Dubai Financial Services Authority (“DFSA”). It must not be relied upon by, or distributed to, Retail Clients or any other person.
The fund(s) referred to in this document are foreign fund(s) domiciled and regulated in Luxembourg by the Commission de Surveillance du Secteur Financier (“CSSF”). Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. Carmignac Private Evergreen refers to the Private Evergreen sub-fund of the SICAV Carmignac S.A. SICAV – PART II UCI, registered with the Luxembourg RCS under number B285278. Unless expressly stated otherwise, they are not domiciled in, authorised by, or subject to regulation or approval by the DFSA. The DFSA has not approved, reviewed or verified this document, the prospectus or any other fund documentation, and the authority does not accept responsibility for the information contained in them or for the merits of an investment in the fund(s).
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Investment in the fund(s) involves risk, including possible loss of capital. The value of investments and income may go down as well as up, and investors may not recover the amount originally invested. Past performance is not a reliable indicator of future results. 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. Any target, forecast, projection or forward-looking statement is based on assumptions and is not a guarantee of future performance or return.
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Market environment