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 global and flexible approach to Fixed Income marketsAccess the fund pagePerformance
| Carmignac Portfolio Global Bond | 9.5 | 0.1 | -3.7 | 8.4 | 4.7 | 0.1 | -5.6 | 3.0 | 1.8 | 3.1 |
| Reference Indicator | 4.6 | -6.2 | 4.3 | 8.0 | 0.6 | 0.6 | -11.8 | 0.5 | 2.8 | 1.8 |
| Carmignac Portfolio Global Bond | + 1.2 % | + 0.7 % | + 1.5 % |
| Reference Indicator | - 1.9 % | - 2.3 % | + 0.5 % |
Source: Carmignac at Feb 28, 2025.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).
Reference Indicator: JPM Global Government Bond index
Carmignac Portfolio Global Bond A EUR Acc
- 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. **The Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 is a European regulation that requires asset managers to classify their funds as either 'Article 8' funds, which promote environmental and social characteristics, 'Article 9' funds, which make sustainable investments with measurable objectives, or 'Article 6' funds, which do not necessarily have a sustainability objective. For more information please refer to https://eur-lex.europa.eu/eli/reg/2019/2088/oj.
Main risks of the fund
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