Fixed income strategies

Carmignac Portfolio Credit

Luxembourg SICAV sub-fundGlobal marketArticle 6
Share Class

LU1623763064

Access the entire credit spectrum for maximum flexibility
  • Conviction-driven and opportunistic strategies on global credit markets.
  • Non-benchmarked approach with high selectivity for a rigorous portfolio allocation.
Key documents
Monthly FactsheetKID
Asset Allocation
Bonds99.7 %
Other0.3 %
Data as of:  30 Sep 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 63.0 %
0.0 %
+ 26.9 %
+ 7.5 %
+ 15.4 %
From 31/07/2017
To 03/10/2024
Calendar Year Performance 2023
-
-
-
+ 2.4 %
+ 3.4 %
+ 23.2 %
+ 11.9 %
+ 3.6 %
- 11.6 %
+ 12.3 %
Net Asset Value
163.02 $
Asset Under Management
1 551 M €
Market
Global market
SFDR - Fund Classification

Article

6
Data as of:  3 Oct 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). 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.
Fixed income strategiesCarmignac Portfolio Credit
Fixed income strategiesCarmignac Portfolio Credit
Share Class

LU1623763064

Overview

Characteristics & Risks

Performance

Portfolio

Documents

Carmignac Portfolio Credit fund performance

Take a look at the Fund's performance supported by our Fund managers’ market commentary and strategy insight.

Our monthly comments

Data as of:  30 Aug 2024.
Fund management team
[Management Team] [Author] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager
[Management Team] [Author] Deneuville Alexandre

Alexandre Deneuville

Fund Manager

Market environment

  • August was marked by a resurgence of stress in the early days of the month, followed by a return of risk appetite in anticipation of Federal Reserve forthcoming easing.

  • The slowdown in job creation and the rise in the unemployment rate to 4.3% across the Atlantic were the main catalysts for the risk of a hard landing scenario for the US economy.

  • Nevertheless, central bankers' more dovish-than-expected stance, coupled with favorable growth (upward revision of US GDP, rebound in retail sales) and inflation figures, enabled the market to recover.

  • The situation was similar in the eurozone, which benefited from a slowdown in inflation and wage growth, while the PMI leading indicator showed an acceleration in private-sector activity.

  • Despite risk aversion at the start of the month, credit spreads on the Itraxx Xover index tightened by -10bp, while the euro and US yield curves steepened, with 2-year yields easing by -14bp and -34bp respectively.

Performance commentary

  • The Fund delivered a positive absolute performance in August, slightly below on its benchmark in an environment of credit spreads tightening.

  • Our stock selection once again made a positive contribution to the Fund's performance, particularly the main investment themes, such as financial bonds and the energy sector.

  • On the other hand, our credit index hedging strategies made a negative contribution following the tightening of credit spreads in the second half of August.

  • Finally, we continue to benefit from our collateralized loan obligations (CLOs), which are performing steadily.

Outlook strategy

  • We continue to focus on our core investment themes via a selection of high-yield bonds, energy, financials and our selection of collateralized loan obligations (CLOs).

  • Furthermore, in this volatile environment, we are maintaining our market hedging strategies at over 20%, to protect the portfolio against the risk of further market dislocations, while focusing on alpha.

  • Indeed, after years of weakness due to abundant liquidity and the low cost of capital, default rates are set to rise to more normal levels, which we see as a catalyst that should create real idiosyncratic opportunities.

  • Finally, the portfolio's high carry (over 6.5%) and attractive credit valuations should mitigate short-term volatility and help generate medium- to long-term performance.

Performance Overview

Data as of:  3 Oct 2024.
View Performance in detail
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). Morningstar Rating™ :  © Morningstar, Inc. All Rights Reserved. The information contained herein: is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Source: Carmignac at 07/10/2024

Carmignac Portfolio Credit Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Sep 2024.
Europe71.6 %
North America10.4 %
Latin America8.1 %
Eastern Europe3.7 %
Asia3.0 %
Africa2.2 %
Middle East1.1 %
Total % of bonds100.0 %
Europe71.6 %
frFrance
13.0 %
ieIreland
12.1 %
gbUnited Kingdom
10.6 %
itItaly
6.6 %
esSpain
5.9 %
Grèce
4.1 %
nlNetherlands
4.0 %
atAustria
2.6 %
chSwitzerland
2.6 %
deGermany
2.6 %
Suède
2.6 %
Norvège
2.2 %
ptPortugal
1.2 %
fiFinland
1.0 %
beBelgium
0.4 %
View Portfolio allocation

Key figures

Below are the key figures for the Fund, which will give you a clearer idea of the Fund's management and bond positioning.

Exposure Data

Data as of:  30 Sep 2024.
Modified Duration3.9
Yield to Maturity6.6 %
Average Coupon6.3 %
Number of Issuers236
Number of Bonds315
Average RatingBBB-
Yield to Maturity (YTM) is the estimated annual rate of return expected on a bond if held until maturity and assuming all payments made as scheduled and reinvested at this rate. For perpetual bonds, the next call date is used for computation. Note that the yield shown does not take into account the FX carry and fees and expenses of the portfolio. The portfolio’s YTM is the weighted average individual bonds holdings' YTMs within the portfolio.

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Managers.
Fund Management Team
[Management Team] [Author] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager
[Management Team] [Author] Deneuville Alexandre

Alexandre Deneuville

Fund Manager
The Fund has access to the entire credit universe, allowing us to explore the potential of multiple liquid credit instruments across the world, from the most to the least risky, and thus find opportunities in different market conditions.
[Management Team] [Author] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager
View Fund's characteristics
View characteristics and risks
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.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.