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Carmignac Portfolio Global Bond: Letter from the Fund Manager - Q2 2026

[Management Team] [Author] Rigeade Guillaume
Author(s)
Guillaume RIGEADE
Published on
17 July 2026
Read time
3 minute(s) read
+3.63%
Performance of the Fund in the 2nd quarter of 2026 (A EUR Acc Share class).
+0.96%
Performance of the reference indicator1 in the 2nd quarter of 2026 (A EUR Acc Share class).
+10.28%
Outperformance of the Fund over its recommended investment horizon (three years) versus its reference indicator1 A EUR Acc Share class).

In the second quarter of 2026, Carmignac Portfolio Global Bond posted a performance of +3.63%, compared with +0.96% for its reference indicator1.

Market review

The second quarter of 2026 once again demonstrated how quickly market narratives can shift. Following a turbulent first quarter dominated by geopolitical tensions and inflationary concerns, investor sentiment improved significantly as fears of a broader Middle East conflict eased. The interim agreement between the United States and Iran, culminating in the reopening of the Strait of Hormuz, drove Brent crude to its largest quarterly decline since the first quarter of 2020. This prompted a broad reassessment of inflation risks, supported sovereign bond and credit markets, and shifted investors' focus back to resilient economic fundamentals.

Against this backdrop, central banks adopted a cautious stance. The Federal Reserve's (Fed) first meeting under Chair Kevin Warsh delivered a hawkish message, highlighting the resilience of the US economy and signalling that rates may need to remain restrictive for longer. Market expectations consequently shifted from pricing around 7 basis points of rate cuts at the start of the quarter to nearly 40 basis points of additional tightening by quarter-end. In Europe, the European Central Bank (ECB) raised its deposit rate by 25 basis points to 2,25%, its first increase since 2023, with President Christine Lagarde emphasising that broadening inflation pressures justified further policy normalisation despite lower energy prices.

Although monetary policy remained restrictive, falling oil prices provided a favourable backdrop for fixed income, with divergent performances across sovereign bond markets and flatter yield curves. US Treasury yields rose, with the 2-year increasing by 38 basis points and the 10-year by 15 basis points, reflecting stronger economic data and a more hawkish Fed. Conversely, German Bunds rallied as easing inflation expectations pushed the 2-year yield down by 9 basis points and the 10-year by 14 basis points.

Credit markets also remained resilient. Strong corporate fundamentals, robust demand for yield and easing geopolitical tensions drove further spread compression across investment grade and high yield markets, with the iTraxx Xover outperforming and tightening by 108 basis points.

Foreign exchange markets remained relatively resilient during the quarter despite elevated geopolitical uncertainty. After weakening in April as optimism surrounding US-Iran negotiations reduced demand for safe-haven assets, the US dollar recovered against the euro over the remainder of the quarter, supported by resilient US economic data and a more hawkish Federal Reserve. Emerging market currencies also performed well overall, benefiting from improving global risk sentiment, attractive carry and lower oil prices towards quarter-end, with commodity-linked and selected Latin American currencies among the strongest performers.

Performance Review

The fund delivered a positive performance over the quarter, outperforming its reference indicator for most of the period despite a market environment characterised by shifting expectations for growth, inflation and central bank policy. Performance was supported by diversified contributions across rates, spread products and foreign exchange.

Interest-rate strategies were the main performance driver. Long positions in European sovereign bonds, together with selective exposure to Norwegian, Australian and New Zealand rates, contributed positively, while short positions on US rates also added value during much of the quarter. Local emerging market rates, particularly Hungary following the election of Peter Magyar, were another positive contributor. These gains were partly offset by the Fund's short position in French government bonds.

Spread products also delivered a positive contribution, driven primarily by hard-currency emerging market debt and selective corporate credit exposure, notably financials, although CDS hedges partially offset these gains. Currency strategies remained supportive, benefiting from selected commodity-linked and high-carry currencies, while the Japanese yen modestly detracted.

During the quarter, modified duration was gradually increased from 4.5 to around 5, reflecting a progressively more constructive stance on rates while maintaining the Fund's core positioning in inflation-linked strategies, emerging markets and diversified credit.

Carmignac Portfolio Global Bond

A global, flexible and macroeconomic approach to fixed income markets
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Outlook

The investment environment remains characterised by resilient economic activity, persistent inflation risks and elevated geopolitical and fiscal uncertainty. At the same time, the repricing across global bond markets has improved the opportunity set for fixed income investors.

Against this backdrop, the portfolio maintains a modified duration of around five years and remains positioned to benefit from attractive carry across a diversified range of global fixed income markets.

In rates, we continue to favour a selective approach. We remain cautious on US rates given resilient growth and persistent inflationary pressures. In Europe, we maintain long positions in Germany while remaining short France amid ongoing political and fiscal uncertainty. We also retain a flattening strategy on the Japanese curve, reflecting our expectation that the Bank of Japan will continue its policy normalisation. Within emerging markets, we continue to favour countries offering attractive real yields, particularly Brazil, South Africa and Eastern Europe.

Spread products remain focused on hard-currency emerging market debt, supported by attractive carry and improving fundamentals, while CDS protection is maintained given relatively tight valuations. In foreign exchange, we retain limited US dollar exposure and continue to favour a diversified basket of selected emerging market and commodity-linked currencies alongside a long position in the Japanese yen.

Source: Carmignac, Bloomberg, 30/06/2026. Performance of the A EUR Acc Share class, ISIN code: LU0336083497.
1Reference indicator, JPM Global Government Bond index. (coupons reinvested).

Carmignac Portfolio Global Bond A EUR Acc

ISIN: LU0336083497
Recommended minimum investment horizon
3 years
Risk indicator*
2/7
SFDR - Fund Classification**
Article 8

*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **Sustainable Finance Disclosure Regulation (SFDR) 2019/2088. The SFDR classification of the Funds may change over time.

Main risks of the fund

Credit: Credit risk is the risk that the issuer may default.
Interest Rate: Interest rate risk results in a decline in the net asset value in the event of changes in interest rates.
Currency: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency, either through direct investment or the use of forward financial instruments.
Discretionary Management: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.
The Fund presents a risk of loss of capital. Please refer to the Fund’s prospectus to view the exhaustive list of risks.

Fees

ISIN: LU0336083497
Entry costs
2.00% of the amount you pay in when entering this investment. This is the most you will be charged. Carmignac Gestion doesn't charge any entry fee. The person selling you the product will inform you of the actual charge.
Exit costs
We do not charge an exit fee for this product.
Management fees and other administrative or operating costs
1.24% of the value of your investment per year. This estimate is based on actual costs over the past year.
Performance fees
20.00% when the share class overperforms the Reference indicator during the performance period. It will be payable also in case the share class has overperformed the reference indicator but had a negative performance. Underperformance is clawed back for 5 years. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years, or since the product creation if it is less than 5 years.
Transaction Cost
0.14% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.

Performance

ISIN: LU0336083497
Carmignac Portfolio Global Bond+4.0+0.5+1.8+3.0−5.6+0.1+4.7+8.4−3.7+0.1
Reference Indicator+1.5−6.0+2.8+0.5−11.8+0.6+0.6+8.0+4.3−6.2
Carmignac Portfolio Global Bond+3.3%+0.9%+1.6%
Reference Indicator−0.0%−2.3%−1.0%

Source: Carmignac at 30 Jun 2026.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The Fund presents a risk of loss of capital.
The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.

Reference Indicator: JPM Global Government Bond index

Share

Marketing communication. Please refer to the KID/KIID, prospectus of the fund before making any final investment decisions. This document is intended for professional clients.

This material may not be reproduced, in whole or in part, without prior authorisation from the Management Company. This material does not constitute a subscription offer, nor does it constitute investment advice. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice. This material has been provided to you for informational purposes only and may not be relied upon by you in evaluating the merits of investing in any securities or interests referred to herein or for any other purposes. The information contained in this material may be partial information and may be modified without prior notice. They are expressed as of the date of writing and are derived from proprietary and non-proprietary sources deemed by Carmignac to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Carmignac, its officers, employees or agents.

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.

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.

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The risks, fees and ongoing charges are described in the KID (Key Information Document). The KID must be made available to the subscriber prior to subscription. The subscriber must read the KID. Investors may lose some or all their capital, as the capital in the funds are not guaranteed. The Funds present a risk of loss of capital.

The Funds’ prospectus, KIDs, NAVs and annual reports are available at www.carmignac.com/en, or upon request to the Management Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. The French investment funds (fonds communs de placement or FCP) are common funds in contractual form conforming to the UCITS or AIFM Directive under French law.

  • In the United Kingdom: the Funds’ respective prospectuses, KIIDs and annual reports are available at www.carmignac.com/en-gb, or upon request to the Management Company, or for the French Funds, at the offices of the acilities Agent, Carmignac UK Ltd, 2 Carlton House Terrace, London, SW1Y 5AF. This document was prepared by Carmignac Gestion, Carmignac Gestion Luxembourg or Carmignac UK Ltd. FP Carmignac ICVC (the “Company”) is an Investment Company with variable capital incorporated in England and Wales under registered number 839620 and is authorised by the FCA with effect from 4 April 2019 and launched on 15 May 2019. FundRock Partners Limited is the Authorised Corporate Director (the “ACD”) of the Company and is authorised and regulated by the FCA. Registered Office: Hamilton Centre, Rodney Way, Chelmsford, Essex, CM1 3BY, UK; Registered in England and Wales with number 4162989. Carmignac Gestion Luxembourg SA has been appointed as the Investment Manager and distributor in respect of the Company. Carmignac UK Ltd (Registered in England and Wales with number 14162894) has been appointed as a sub-Investment Manager of the Company and is authorised and regulated by the Financial Conduct Authority with FRN:984288.

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  • In Belgium: This document is intended for professional clients. This content has not been validated by FSMA. The decision to invest in the promoted fund should take into account all its characteristics or objectives as described in its prospectus. This communication is published by Carmignac Gestion S.A., a portfolio management company approved by the Autorité des Marchés Financiers (AMF) in France, and its Luxembourg subsidiary Carmignac Gestion Luxembourg, S.A., an investment fund management company approved by the Commission de Surveillance du Secteur Financier (CSSF). “Carmignac” is a registered trademark. “Investing in your Interest” is a slogan associated with the Carmignac trademark. This document does not constitute advice on any investment or arbitrage of transferable securities or any other asset management or investment product or service. The information and opinions contained in this document do not take into account investors’ specific individual circumstances and must never be interpreted as legal, tax or investment advice. The information contained in this document may be partial and could be changed without notice. This document may not be reproduced in whole or in part without prior authorisation. The risks and fees are described in the KID (Key Information Document). The prospectus, KID, the net asset-values and the latest (semi-) annual management report may be obtained, free of charge, in French or in Dutch, from the management company (tel. +352 46 70 60 1) or by consulting its website or www.fundinfo.com. These materials may also be obtained from Caceis Belgium S.A., the financial service provider in Belgium, at the following address: avenue du port, 86c b320, B-1000 Brussels. The Fund (fonds commun de placement or FCP) is a common fund in contractual form conforming to the UCITS Directive under French law. Access to the Fund may be subject to restrictions regarding certain persons or countries. The Funds are not registered for retail distribution in Asia, in Japan, in North America, nor are they registered in South America. Carmignac Funds are registered in Singapore as restricted foreign scheme (for professional clients only). The Funds have not been registered under the US Securities Act of 1933. The Funds may not be offered or sold, directly or indirectly, for the benefit or on behalf of a «U.S. person», according to the definition of the US Regulation S and FATCA. In case of subscription to a fund subject to Article 19bis of the Belgian Income Tax Code (CIR92), the investor will have to pay, upon redemption of his or her shares, a withholding tax of 30% on the income (in the form of interest, or capital gains or losses) derived from the return on assets invested in debt claims. Distributions are subject to withholding tax of 30% without income distinction. In case of subscription in a French investment fund (fonds commun de placement or FCP), you must declare on tax form, each year, the share of the dividends (and interest, if applicable) received by the Fund. Any complaint may be referred to complaints@carmignac.com or CARMIGNAC GESTION - Compliance and Internal Controls - 24 place Vendôme Paris France or on the website www.ombudsfin.be.

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For Carmignac Portfolio Long-Short European Equities: Carmignac Gestion Luxembourg SA in its capacity as the Management Company for Carmignac Portfolio, has delegated the investment management of this Sub-Fund to White Creek Capital LLP (Registered in England and Wales with number OCC447169) from 2nd May 2024. White Creek Capital LLP is authorised and regulated by the Financial Conduct Authority with FRN : 998349.

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.