Fixed income strategies

Carmignac Portfolio Global Bond

SICAVGlobal marketSRI Fund Article 8
Share Class

LU0807690085

A global, flexible and macroeconomic approach to fixed income markets
  • A global investment universe to identify and capitalise on macroeconomic trends across the globe.
  • Access to a wide range of performance drivers available in developed and emerging markets.
Asset Allocation
Bonds91.8 %
Other8.2 %
Data as of:  30 Apr 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 36.8 %
+ 44.5 %
+ 14.3 %
+ 0.5 %
+ 2.7 %
From 19/07/2012
To 23/05/2024
Calendar Year Performance 2023
+ 13.6 %
+ 3.0 %
+ 10.3 %
+ 1.0 %
- 1.2 %
+ 11.1 %
+ 6.0 %
+ 0.8 %
- 4.2 %
+ 4.6 %
Net Asset Value
136.8 $
Asset Under Management
£
Market
Global market
SFDR - Fund Classification

Article

8
Data as of:  23 May 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 Global 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:  30 Apr 2024.
Fund management team

Abdelak Adjriou

Fund Manager

Market environment

The widening gap between monetary policies on each side of the Atlantic, intensification of geopolitical risk (escalation of reprisals in the Middle East) and doggedness of inflation (in part due to commodity prices) led to a bond market correction in April. Government bond yields shot up, especially in the United States where the 2yr hit 5%. This has mainly come about because the US economy is outperforming and, in particular, US employment data for March was very strong (303,000 job starts). Although GDP growth slowed in the first quarter (annualised rate of 1.6% q/q), it seems that employment, inflation and to some extent personal consumer expenditure (+2.7% y/y) had a greater influence on market developments.

Investors lowered their rate-cutting expectations as the FOMC meeting approached. Some even fear an increase in the Fed Funds rate if growth stays close to 3%.

Economic growth is much less robust in the Eurozone, although it has stabilised and in some areas, especially services, is even starting to pick up.

Despite the Chinese government’s limited attempts to stimulate its economy and the need for consolidation, the latest figures support the idea of a global economy recovery.

On foreign exchange markets the US dollar appreciated, mainly because the US economy is outperforming and investors have lowered their expectation of Fed Fund rate cuts. The yen was the big loser, closing at a level unseen since 1990 despite Japanese authorities’ attempts to shore up the national currency.

Performance commentary

The Fund delivered a negative monthly performance, though beat its reference indicator. Our corporate bond selection continued to generate a positive return, as did our hedging of this segment. We are nonetheless keeping a high level of protection given that corporate bond spreads are barely 50 bps away from their all-time lows. Our selection of external debt had a neutral impact on performance. Our government bond strategies weighed on the Fund, mainly through our short positions on Japan, long position on the United States and long position on Mexican local debt. However, our relatively low modified duration made a big difference to the lead over our reference indicator. We kept our overall modified duration at a prudent level throughout February (around 3.4 at month-end).

Outlook strategy

We are remaining cautious and had reduced modified duration to 3.4 by month-end. However, we managed our modified duration flexibly over the month, going down to around 2 in the middle of April. Yield movements seem to be influenced by inflation figures and the resilient labour market. In summary, we remain optimistic for US real yields given how high they are. We are also long on the local debt of emerging markets where real yields are high and a rate-cutting cycle is underway, such as Brazil and Mexico; and we are feeling positive about undervalued currencies that are benefitting from solid economic trends, such as demand for commodities, and out-of-synch cycles. We are also taking a selective approach to special government bond cases (external debt) in the high yield segment, where risk is well rewarded.
We are keeping a certain amount of credit hedging, having increased it to around 14.5% early in the month before reducing it as spreads widened. At a foreign exchange level, our dollar exposure remained long at around 39%. We increased our US dollar exposure to nearly 50% during the month to take advantage of its appreciation. Another 6% is held in the Japanese yen. We have a positive outlook for some emerging markets and commodity-based currencies, including the Brazilian real, and certain Asian currencies such as the won, as the South Korean economy should benefit from the AI boom.

Performance Overview

Data as of:  23 May 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 25/05/2024

Carmignac Portfolio Global Bond Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Apr 2024.
Latin America28.6 %
North America27.4 %
Europe18.9 %
Africa8.9 %
Asia-Pacific5.6 %
Middle East4.4 %
Eastern Europe3.7 %
Asia2.6 %
Total % of bonds100.0 %
Latin America28.6 %
mxMexico
17.8 %
République Dominicaine
4.3 %
Brésil
2.1 %
coColombia
1.8 %
arArgentina
1.4 %
clChile
0.6 %
Ecuador
0.5 %
crCosta Rica
0.2 %

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 Apr 2024.
Modified Duration3.1
Yield to Worst6.2 %
Yield to Maturity6.3 %
Average Coupon4.6 %
Number of Issuers95
Number of Bonds126
Average RatingBBB

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Manager.
Fund Management Team

Abdelak Adjriou

Fund Manager
The flexibility of our investment process allows us to take advantage of all performance drivers offered by the fixed income universe, and thus to build a diversified portfolio based on solid convictions.

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.