Fixed income strategies

Carmignac Portfolio Flexible Bond

Luxembourg SICAV sub-fundGlobal marketSRI Fund Article 8
Share Class

LU0992631308

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
Bonds75.4 %
Other24.6 %
Data as of:  30 Sep 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 11.7 %
+ 10.2 %
+ 7.3 %
- 2.6 %
+ 9.2 %
From 18/10/2024
To 18/10/2024
Calendar Year Performance 2023
+ 2.1 %
- 1.0 %
- 0.1 %
+ 1.6 %
- 3.5 %
+ 4.9 %
+ 9.3 %
0.0 %
- 8.0 %
+ 2.8 %
Net Asset Value
1117.02 CHF
Asset Under Management
1 484 M €
Market
Global market
SFDR - Fund Classification

Article

8
Data as of:  18 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 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:  30 Sep 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

  • The US Federal Reserve delivered a more dovish message than expected at its September meeting, cutting its key rate by -0.5%.- Growth data nevertheless exceeded expectations across the Atlantic, both in terms of unemployment, which declined to 4.2%, and consumer resilience, with retail sales accelerating by +0.1%.- Headline inflation continued to slow to +2.5% year-on-year on the back of falling commodity prices, while core inflation remained stable at +3.2%.- For its part, the European Central Bank cut its key rate by -25bp against a backdrop of disappointing economic data, both in terms of leading indicators and the zone's future growth prospects.- Among other central banks, the Bank of Japan opted for a pause in its rate hike cycle, while the Brazilian central bank raised its key rate by a quarter point.

Performance commentary

  • The Fund delivered a positive performance over the month of September in an environment marked by a strong easing in interest rates.- Our carry strategies were the strongest contributors to the Fund's performance, benefiting from high structural yields but also from investors' strong appetite for risk during the observation period.- Our preference for short rates was favourable as yield curves steepened. We also increased our exposure to the short end of the Brazilian yield curve after the central bank meeting.- We made several arbitrages during the month, increasing our exposure to the short end of the US yield curve ahead of the Federal Reserve meeting, then reducing the portfolio's core duration in the easing movement that followed.

Outlook strategy

  • We remain in line with a soft landing scenario across the Atlantic, where the US consumer continues to show resilience as we enter a cycle of easing financial conditions.- The market is now expecting a sequence of significant rate cuts, while the yield curve is still underestimating the fiscal indiscipline of economic agents.- Inflation is slowing down, in line with expectations. Nevertheless, the market seems over-optimistic about the normalization of inflation over the next few quarters.- Having said that, we are maintaining a cautious stance on the portfolio's interest-rate sensitivity, while implementing a yield-curve steepening strategy and a marked appetite for inflation products.

Performance Overview

Data as of:  16 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.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 18/10/2024

Carmignac Portfolio Flexible Bond Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Sep 2024.
Europe67.1 %
North America10.4 %
Latin America7.8 %
Eastern Europe7.2 %
Middle East2.8 %
Africa2.7 %
Asia-Pacific1.0 %
Asia1.0 %
Total % of bonds100.0 %
Europe67.1 %
itItaly
16.9 %
gbUnited Kingdom
8.8 %
Grèce
7.0 %
ieIreland
6.3 %
frFrance
6.1 %
esSpain
4.5 %
deGermany
3.0 %
nlNetherlands
2.8 %
Norvège
2.5 %
atAustria
1.6 %
ptPortugal
1.5 %
chSwitzerland
1.4 %
Suède
1.3 %
smSanMarino
1.1 %
fiFinland
1.0 %
adAndorra
0.9 %
beBelgium
0.4 %

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 Duration1.1
Yield to Maturity5.2 %
Average Coupon4.4 %
Number of Issuers155
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.