Fixed income strategies

Carmignac Portfolio Sécurité

Luxembourg SICAV sub-fundEuropean marketSRI Fund Article 8
Share Class

LU0992624949

Flexible, low duration solution to navigate European fixed income markets
  • Low duration euro fixed income Fund.
  • Flexible and active approach with a modified duration range from -3 to +4.
Asset Allocation
Bonds71.7 %
Other28.3 %
Data as of:  30 Sep 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
2 years
Cumulative Performance since launch
+ 16.4 %
+ 13.5 %
+ 8.2 %
+ 4.6 %
+ 8.5 %
From 25/11/2013
To 03/10/2024
Calendar Year Performance 2023
+ 1.9 %
+ 1.4 %
+ 2.4 %
+ 0.4 %
- 2.7 %
+ 3.9 %
+ 2.5 %
+ 0.4 %
- 4.2 %
+ 4.5 %
Net Asset Value
116.43 €
Asset Under Management
1 484 M €
Market
European market
SFDR - Fund Classification

Article

8
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.

Carmignac Portfolio Sécurité 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] Allier Marie Anne

Marie-Anne Allier

Fund Manager
[Management Team] [Author] Guedy Aymeric

Aymeric Guedy

Fund Manager, Analyst

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 performance, slightly behind its reference indicator.

  • The portfolio mainly benefited from its carry strategies, such as credit, which also benefited from an easing in rates, particularly on the front end in a volatile environment. However, our protective measures aimed at reducing our exposure to the riskiest part of the market had a slight impact on performance.

  • On sovereign debt, we benefited from our long positions on the short end of German debt. Conversely, our short positions, initiated on the short end of the US curve, given the aggressive expectations of rate cuts across the Atlantic, had a slightly negative impact

  • Finally, the portfolio continues to benefit from the good performance of our selection of Collateralized Loan Obligations (CLOs) and our exposure to money market instruments.

Outlook strategy

  • The relative resilience of the various economies, characterised by a soft landing in Europe and the United States and inflation gradually returning towards target, should enable the ECB to gradually continue its rate-cutting cycle and the Fed to begin it at its September meeting.

  • However, given the presence of political and geopolitical risks and the increasingly tight valuations on certain markets, the portfolio is maintaining a balanced positioning with a moderate duration of 1.8.

  • On the one hand, a significant allocation to credit, mainly invested in short-term, highly-rated corporate bonds and CLOs, offering an attractive source of carry and a low beta relative to market volatility.

  • On the other hand, we are long the short end of the German yield curve, although this is partly offset by a short exposure to US short-term rates, where the rate cuts expected for 2024 seem a little excessive, particularly compared with those of the ECB.

  • We are also retaining protection on the credit market (iTraxx Xover), with markets trading at tight levels in a geopolitical context that remains uncertain.

  • Finally, we have an allocation to money market instruments, which represent an attractive source of carry with limited risk.

  • This balanced strategy should enable the Fund to benefit from its carry in an environment of gradual monetary normalisation, but also to cope with temporary market turbulence, as illustrated by the European and French elections in June and, more recently, fears about the health of the US economy.

Performance Overview

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). 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 04/10/2024

Carmignac Portfolio Sécurité Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Sep 2024.
Europe78.5 %
North America14.2 %
Eastern Europe6.6 %
Asia-Pacific0.5 %
Latin America0.3 %
Total % of bonds100.0 %
Europe78.5 %
itItaly
17.6 %
esSpain
16.0 %
ieIreland
10.2 %
frFrance
8.6 %
deGermany
5.2 %
gbUnited Kingdom
4.5 %
Grèce
3.1 %
nlNetherlands
2.8 %
ptPortugal
2.0 %
chSwitzerland
1.9 %
Norvège
1.7 %
Suède
1.6 %
atAustria
1.1 %
adAndorra
0.8 %
beBelgium
0.6 %
fiFinland
0.3 %
smSanMarino
0.3 %
Luxembourg
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:  30 Sep 2024.
Modified Duration2.0
Yield to Maturity3.9 %
Average Coupon3.1 %
Number of Issuers160
Number of Bonds251
Average RatingA
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] Allier Marie Anne

Marie-Anne Allier

Fund Manager
[Management Team] [Author] Guedy Aymeric

Aymeric Guedy

Fund Manager, Analyst
For over 35 years, we have maintained our active and conviction-driven approach, while being able to adapt to different market configurations. This is what we want to continue offering to investors.
[Management Team] [Author] Allier Marie Anne

Marie-Anne Allier

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.