Fixed income strategies

Carmignac Portfolio Flexible Bond

SICAVGlobal marketSRI Fund Article 8
Share Class

LU0992631050

A flexible solution aiming to capture bond opportunities globally
  • A conviction-driven Fund aiming to seize global bond markets opportunities while systematically hedging the currency risk.
  • An investment process based on a top-down asset allocation and a bottom-up implementation of interest rate and credit strategies.
Asset Allocation
Bonds77.8 %
Other22.2 %
Data as of:  31 May 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 13.0 %
+ 10.5 %
+ 9.5 %
- 2.5 %
+ 6.5 %
From 15/11/2013
To 12/06/2024
Calendar Year Performance 2023
+ 1.7 %
- 0.6 %
+ 0.1 %
+ 1.8 %
- 3.4 %
+ 5.0 %
+ 9.2 %
-
- 8.0 %
+ 4.7 %
Net Asset Value
1038.5 €
Asset Under Management
1 374 M €
Market
Global market
SFDR - Fund Classification

Article

8
Data as of:  12 Jun 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).

Carmignac Portfolio Flexible Bond 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:  31 May 2024.
Fund management team
[Management Team] [Author] Rigeade Guillaume

Guillaume Rigeade

Co-Head of Fixed Income, Fund Manager
[Management Team] [Author] Eliezer Ben Zimra

Eliezer Ben Zimra

Fund Manager

Market environment

  • May brought the first signs of normalisation for the US economy and labour market, as well as a surprising drop in retail sales.

  • Although inflation was slightly lower, Federal Reserve members remained cautious over the month.

  • The trend was the opposite in the Eurozone. GDP had already firmed up in the first quarter, and more signs of recovery emerged with the composite PMI accelerating.

  • The improvement was also visible in inflation figures, which rose again in May (+2.6% vs. +2.4%).

  • This desynchronisation led to a sharp drop in US yields, with the 10yr down 18 bps over the month but the Eurozone trend more upward.

  • Investors regained their appetite for corporate bonds, as reflected in spreads on the Itraxx Xover index narrowing by 22 bps over the month.

Performance commentary

  • The Fund delivered a positive return in both absolute and relative terms over May.

  • Conditions for our buy-and-hold strategies remained favourable. Our inflation-linked instruments and curve steepening strategies also made useful contributions.

  • The Fund’s modified duration increased when we reduced our short position on Japanese bonds and raised our exposure to US short-term debt.

  • We also built up our exposure to US inflation-linked instruments as the geopolitical situation remains uncertain and consumer spending is holding up well.

Outlook strategy

  • Global economies should hold firm over the coming months as stimulus remains high at a time of military and trade conflict.

  • This should underpin growth, suggesting that we should keep gross exposure to credit strategies high.

  • However, inflation’s return towards target levels could be a source of disappointment, and the market’s optimism justifies the continued use of inflation-linked instruments within the portfolio.

  • We are still convinced about the ability of short-term bonds to outperform given that real yields remain high and growth is robust.

Performance Overview

Data as of:  12 Jun 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.On 30/09/2019 the composition of the reference indicator changed: the ICE BofA ML Euro Broad Market Index coupons reinvested replaces the EONCAPL7. Performances are presented using the chaining method. The Fund’s name was changed from Carmignac Portfolio Capital Plus to Carmignac Portfolio Unconstrained Euro Fixed Income.
Source: Carmignac at 13/06/2024

Carmignac Portfolio Flexible Bond Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  31 May 2024.
Europe67.5 %
North America9.6 %
Latin America8.3 %
Eastern Europe7.5 %
Middle East3.0 %
Africa2.4 %
Asia1.4 %
Asia-Pacific0.3 %
Total % of bonds100.0 %
Europe67.5 %
itItaly
17.4 %
ieIreland
8.5 %
gbUnited Kingdom
8.5 %
frFrance
7.3 %
Grèce
6.1 %
esSpain
3.5 %
deGermany
3.0 %
Norvège
2.6 %
atAustria
2.4 %
nlNetherlands
2.1 %
ptPortugal
1.5 %
smSanMarino
1.0 %
fiFinland
1.0 %
Suède
1.0 %
chSwitzerland
0.9 %
adAndorra
0.8 %

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:  31 May 2024.
Modified Duration3.3
Yield to Maturity6.2 %
Average Coupon4.6 %
Number of Issuers153
Number of Bonds198
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] Rigeade Guillaume

Guillaume Rigeade

Co-Head of Fixed Income, Fund Manager
[Management Team] [Author] Eliezer Ben Zimra

Eliezer Ben Zimra

Fund Manager
Eliezer and myself are managing this strategy with the objective to offer investors a flexible and diversified investment solution investing across fixed income markets, while hedging the currency risk.
[Management Team] [Author] Rigeade Guillaume

Guillaume Rigeade

Co-Head of Fixed Income, 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.