Carmignac Sécurité: Letter from the Fund Managers - Q2 2026
In the second quarter of 2026, Carmignac Sécurité posted a performance of +1.24%, compared with +0.95% 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.
Performance review
Against this constructive backdrop, Carmignac Sécurité delivered a positive performance during the second quarter, with carry once again representing the Fund's main source of returns. The portfolio benefited from its significant allocation to short-dated corporate credit, particularly in our preferred sectors, financials, energy and collateralised loan obligations (CLOs), which all gained from further credit spread tightening.
Interest rate strategies also contributed positively. Long positions at the front end of the euro yield curve benefited from the rally in European government bonds as geopolitical tensions eased, while inflation positions added value before giving back part of their gains following the sharp decline in oil prices. Conversely, credit hedging slightly detracted from performance in the increasingly risk-on environment.
Duration was actively managed in line with our central scenario of two ECB rate hikes. We initially reduced duration from 2,5 to around 2,0 years while markets priced fewer than two hikes, before increasing it to 2,6 years by the end of June as expectations shifted towards a more hawkish ECB. We strengthened exposure at the front end of the German curve as valuations became more attractive and progressively added Italian real rates. We also realised gains on selected emerging market positions, notably Hungary following the Magyar election victory, while reducing exposure to Romania amid rising political uncertainty. In the US, we reduced our short duration exposure through a curve-steepening strategy by adding a long position in the 5-year segment while maintaining short exposure at the long end.
Outlook
The investment environment remains characterised by resilient economic activity, persistent medium-term inflation risks and elevated geopolitical and fiscal uncertainty. While lower energy prices have eased immediate inflation concerns, markets remain vulnerable to renewed volatility as central banks continue to navigate a challenging policy environment.
Against this backdrop, we continue to rely on the Fund's balanced construction, combining an attractive carry profile with diversified hedging strategies to enhance resilience across market cycles. The portfolio remains heavily invested in credit (around 78%), primarily through short-dated, highly rated corporate bonds, which continue to offer attractive income while limiting sensitivity to interest-rate volatility.
This core allocation is complemented by a long exposure at the front end of the euro yield curve, where valuations remain attractive following recent repricing, a US curve steepener reflecting our view that policy expectations remain overly restrictive, long positions in euro area and US breakeven inflation, a short position in French government bonds amid persistent political and fiscal uncertainty, and iTraxx Xover credit hedging against a potential widening in spreads from historically tight levels.
Finally, the Fund continues to benefit from an attractive yield-to-maturity of approximately 3,9%, providing both a solid source of income and a first line of defence during periods of higher interest-rate volatility or wider credit spreads. In an environment where income has once again become the primary driver of fixed income returns, we believe Carmignac Sécurité remains well positioned to deliver attractive risk-adjusted performance over the medium term.
1Reference indicator: ICE BofA ML 1–3 Year All Euro Government Index.
Source: Carmignac, Bloomberg, 30/06/2026. Performance of the AW EUR Acc share class, ISIN FR0010149120.
Carmignac Sécurité
Carmignac Sécurité AW EUR Acc
- Recommended minimum investment horizon
- 2 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
Fees
- Entry costs
- 1,00% 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
- 1,11% of the value of your investment per year. This estimate is based on actual costs over the past year.
- Performance fees
- There is no performance fee for this product.
- Transaction Cost
- 0,11% 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
| Carmignac Sécurité | +0,7 | +2,3 | +5,3 | +4,1 | −4,8 | +0,2 | +2,0 | +3,6 | −3,0 | +0,0 |
| Reference Indicator | +0,5 | +2,3 | +3,2 | +3,4 | −4,8 | −0,7 | −0,2 | +0,1 | −0,3 | −0,4 |
| Carmignac Sécurité | +4,0% | +1,4% | +1,1% |
| Reference Indicator | +3,0% | +0,8% | +0,3% |
Source: Carmignac at Jun 30, 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.
Reference Indicator: ICE BofA 1-3 Year All Euro Government index
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.
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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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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.