Carmignac Portfolio Global Bond : end of summer update
Positionnement
We are in an inflationary and recessionary environment which generally translates into higher rates on the long end of the curve, a support for commodity prices and consequently higher prices for commodity-related-currencies but also lower valuations for corporate credit and other high beta assets. In this context, as of end of August, our fund is positioned as follows:
- Long position on core countries, mainly in the US, on the long end of the curve (10/30 years)
- Active management of our credit exposure notably via an increase in hedging strategies with as much as 14% as at the end of the period. Hence a defensive net credit exposure close to zero.
- Diversified exposure of our long credit book, including energy, financials, real estate and a selection of CLOs (Collateralized Loan Obligations).
- Exposure to emerging assets through:
o External currency sovereign debt (i.e. Romania, Oman and Egypt)
o Short positions in local currency government debt (i.e. India and Thailand)
o Long positions in currencies (i.e. Brazilian real, Indonesian rupiah or Russian rouble)
o Long positions in so-called "defensive" currencies (i.e. US dollar, Japanese yen, Swiss franc etc.)
o Gradual strengthening of our positions in commodity currencies (notably the Malaysian ringgit, Indonesian rupiah)
- Interest rate sensitivity close to 3.1 (as of 31/08/2022)
- In addition to the EM currencies already mentioned, we have an exposure to the US dollar at around 27%, the Japanese Yen at around 5%, the Suisse franc at around 5% and strengthening of our long strategy on the Norwegian krone.
Performance
- In the interest rate space, we managed actively our interest rate sensitivity between +1.5 and +4.50 over the period. And although we maintained a defensive positioning, this slightly long strategy weighed on the overall performance over the period.
Additionally, although our selection of corporate credit names in the portfolio penalized us slightly since the beginning of the year, our hedging strategies in the high yield segment have cushioned most of the spread widening movement which took place year to date. Hence, our protections, strongly limited the sector's decline.
Lastly, we recorded a strong performance from our currency strategies, both on our long positions in the US dollar, commodity-related currencies, and the Swiss franc among others. In fact, the currency effect greatly compensated for the rest of the aforementioned performance drivers.
Carmignac Portfolio Global Bond A EUR Acc
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
2024 (YTD) ? Year to date |
|
|---|---|---|---|---|---|---|---|---|---|---|---|
| Carmignac Portfolio Global Bond A EUR Acc | +13.78 % | +3.33 % | +9.46 % | +0.10 % | -3.66 % | +8.36 % | +4.70 % | +0.12 % | -5.56 % | +3.02 % | +2.07 % |
| Reference Indicator | +14.63 % | +8.49 % | +4.60 % | -6.16 % | +4.35 % | +7.97 % | +0.62 % | +0.60 % | -11.79 % | +0.50 % | +1.35 % |
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| 3 Years | 5 Years | 10 Years | |
|---|---|---|---|
| Carmignac Portfolio Global Bond A EUR Acc | -0.01 % | +0.73 % | +2.38 % |
| Reference Indicator | -3.18 % | -2.55 % | +1.22 % |
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Source: Carmignac at 30/09/2024
| 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 : | 1,20% 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 : | 1,36% 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. |
Past performance is not necessarily indicative of future performance. The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged. Performances are net of fees (excluding possible entrance fees charged by the distributor).
Source: Carmignac, Bloomberg, 31/08/2022. Performance of the A EUR Acc share class ISIN Code A EUR Acc : LU0336083497. ¹Reference Indicator: JP Morgan GBI Global (EUR).
Carmignac Portfolio Global Bond A EUR Acc
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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.