Flash Note

Chapter 1: Hedging political risks July 2016


Numerous political risks combined with a vulnerable global economy and historically low rates have created a challenging environment for the bond asset class that demands a cautious stance.


Carmignac Portfolio Unconstrained Global Bond - flexible and active approach to face challenges in place:

  • Increased allocation to core rates
  • Upon sharp compression, flexibly taking profits on core rates
  • Maintaining high allocation to safe haven currencies for a better risk-reward profile