Fixed income strategies

Carmignac Portfolio EM Debt

SICAVEmerging marketsSRI Fund Article 8
Share Class

LU2277146382

Exploit fixed income opportunities across the entire emerging universe
  • Access a wide range of performance drivers across the emerging universe: local debt, external debt and currencies.
  • A conviction-driven and non-benchmarked philosophy to uncover the attractive opportunities emerging markets have to offer.
Key documents
Asset Allocation
Bonds90.6 %
Other9.4 %
Data as of:  28 Jun 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 9.0 %
0.0 %
0.0 %
+ 5.1 %
+ 4.9 %
From 31/12/2021
To 12/07/2024
Calendar Year Performance 2023
-
-
-
-
-
-
-
+ 2.8 %
- 8.9 %
+ 14.7 %
Net Asset Value
108.97 €
Asset Under Management
228 M $
Market
Emerging markets
SFDR - Fund Classification

Article

8
Data as of:  12 Jul 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.

Carmignac Portfolio EM Debt 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:  28 Jun 2024.
Fund management team

Abdelak Adjriou

Fund Manager

Alessandra Alecci

Fund Manager

Market environment

  • US inflationary pressure eased a little in June, with the rate falling to 3.3%, but momentum remained strong in the labour market and in services where activity picked up again.

  • At its FOMC meeting, the US Federal Reserve therefore left its interest rates unchanged, with members predicting a cut by the end of this year.

  • The ECB knocked 25 bps off its key interest rate at its monthly meeting, but reiterated that any future cuts will be data-dependent.

  • In China, economic activity is showing signs of weakness, with industrial production and investment both slowing. The real estate sector is in crisis with investment and house prices falling.

  • Meanwhile, elections in emerging countries such as India, Mexico and South Africa made EM assets highly volatile across the board. However, the situation for a number of them has since improved.

  • On markets, credit spreads increased by 23 basis points, as reflected in the Itraxx Xover. EM external debt spreads also widened by 11 basis points. However, bonds appreciated with 10-year yields down 10 bps in the United States and 16 bps in Germany.

  • At a foreign exchange level, the US dollar gained around 1.8% versus the euro, whereas the Mexican peso and Brazilian real, amongst others, suffered isolated mishaps.

Performance commentary

  • The Fund ended the month flat, trailing its reference indicator.

  • The main positive contributors to performance were our long positions on the short end of developed market (German and US) yield curves, as well as bonds in Hungary, Poland and Colombia, and our credit hedges.

  • However, our external debt strategies weighed on performance, especially our South African hedges and our long positions on Egypt and Argentina.

  • The impact of our currency portfolio was negative, although it outperformed our reference indicator, mainly due to our long position on the Brazilian real and short position on the Chinese yuan.

Outlook strategy

  • In the current environment, with the US economy slowing and developed countries’ central banks starting a rate-cutting cycle, we have increased the Fund’s modified duration to around 4.7.

  • Our allocation remains balanced between local and external debt.

  • For the former, we still prefer countries like Mexico and Brazil where real short-term interest rates remain extremely high.

  • We increased our allocation to local currency debt, especially that of Mexico following the post-election correction, in order to take advantage of the subsequent bounce.

  • The Fund continues to be long on emerging market debt denominated in hard currencies, especially within the EMEA region and Latin America.

  • At a foreign exchange level, the Fund reduced its net currency exposure due to the less favourable environment, but remains long on the Brazilian real, Chilean peso and India rupee amongst others.

Performance Overview

Data as of:  12 Jul 2024.
​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 15/07/2024

Carmignac Portfolio EM Debt Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Jun 2024.
Latin America39.5 %
Eastern Europe23.9 %
Africa19.9 %
Europe6.0 %
Middle East5.9 %
Asia4.8 %
Total % of bonds100.0 %
Latin America39.5 %
mxMexico
22.9 %
coColombia
6.8 %
Pérou
3.2 %
arArgentina
2.3 %
République Dominicaine
1.9 %
Ecuador
1.8 %
clChile
0.3 %
Brésil
0.2 %
crCosta Rica
0.1 %

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:  28 Jun 2024.
Modified Duration4.5
Yield to Maturity8.7 %
Average Coupon5.9 %
Number of Issuers58
Number of Bonds81
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

Abdelak Adjriou

Fund Manager

Alessandra Alecci

Fund Manager
The Fund is best suited for fixed income investors looking for higher returns than those offered by developed markets, by taking advantage of the emerging universe potential.

Abdelak Adjriou

Fund Manager
View Fund's characteristics
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.