Fixed income strategies

Carmignac Portfolio Credit

SICAVGlobal marketArticle 6
Share Class

LU1623762843

Access the entire credit spectrum for maximum flexibility
  • Conviction-driven and opportunistic strategies on global credit markets.
  • Non-benchmarked approach with high selectivity for a rigorous portfolio allocation.
Key documents
Asset Allocation
Bonds99.4 %
Other0.6 %
Data as of:  14 Jun 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 43.2 %
0.0 %
+ 18.9 %
+ 0.8 %
+ 13.3 %
From 31/07/2017
To 20/06/2024
Calendar Year Performance 2023
-
-
-
+ 1.8 %
+ 1.7 %
+ 20.9 %
+ 10.4 %
+ 3.0 %
- 13.0 %
+ 10.6 %
Net Asset Value
143.2 €
Asset Under Management
1 401 M €
Market
Global market
SFDR - Fund Classification

Article

6
Data as of:  20 Jun 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.

Carmignac Portfolio Credit 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] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, 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.

  • Our portfolio benefitted from its main investment themes, whether investment grade or high yield, such as financials, energy, special cases and restructuring.

  • Our collateralised loan obligations also had a positive effect.??

Outlook strategy

  • We are still concentrating on our main investment themes through a selection of high yield bonds in the energy and financial sectors, and collateralised loan obligations (CLOs).?

  • In these volatile conditions, we kept our credit market hedging strategies above 20% to protect the portfolio from the risk of further market dislocation, while focusing on alpha.

  • After remaining low for several years due to the liquidity glut and low cost of capital, default rates will probably return to more normal levels, which we view as a catalyst likely to create real stand-out opportunities.

  • The portfolio’s high carry (over 7%) and attractive credit valuations should mitigate short-term volatility and generate medium- and long-term performance.

Performance Overview

Data as of:  20 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.The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Source: Carmignac at 24/06/2024

Carmignac Portfolio Credit Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  14 Jun 2024.
Europe70.8 %
North America9.5 %
Latin America8.9 %
Asia4.2 %
Eastern Europe3.4 %
Middle East1.8 %
Africa1.5 %
Total % of bonds100.0 %
Europe70.8 %
gbUnited Kingdom
13.1 %
frFrance
13.0 %
ieIreland
12.9 %
itItaly
6.5 %
esSpain
5.0 %
Grèce
4.6 %
nlNetherlands
4.1 %
Norvège
2.7 %
Suède
2.5 %
atAustria
2.2 %
chSwitzerland
1.8 %
ptPortugal
1.1 %
fiFinland
0.8 %
deGermany
0.4 %
Jersey
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:  14 Jun 2024.
Modified Duration3.6
Yield to Maturity7.6 %
Average Coupon6.5 %
Number of Issuers223
Number of Bonds300
Average RatingBB+
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] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager
The Fund has access to the entire credit universe, allowing us to explore the potential of multiple liquid credit instruments across the world, from the most to the least risky, and thus find opportunities in different market conditions.
[Management Team] [Author] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager
View Fund's characteristics
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.
The information presented above is not contractually binding and does not constitute investment advice. Past performance is not a reliable indicator of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor), where applicable. Investors may lose some or all of their capital, as the capital in the UCI is not guaranteed. Access to the products and services presented herein may be restricted for some individuals or countries. Taxation depends on the situation of the individual. The risks, fees and recommended investment period for the UCI presented are detailed in the KIDs (key information documents) and prospectuses available on this website. The KID must be made available to the subscriber prior to purchase.). The reference to a ranking or prize, is no guarantee of the future results of the UCITS or the manager.