Fixed income strategies

Carmignac Portfolio EM Debt

SICAVEmerging marketsSRI Fund Article 8
Share Class

LU1623763734

Exploit fixed income opportunities across the entire emerging universe
  • Access a wide range of performance drivers across the emerging universe: local debt, external debt and currencies.
  • A conviction-driven and non-benchmarked philosophy to uncover the attractive opportunities emerging markets have to offer.
Asset Allocation
Bonds96.6 %
Other3.4 %
Data as of:  31 May 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 40.3 %
-
+ 42.6 %
+ 2.7 %
+ 1.8 %
From 31/07/2017
To 12/06/2024
Calendar Year Performance 2023
-
-
-
+ 1.1 %
- 10.0 %
+ 28.9 %
+ 10.5 %
+ 3.9 %
- 9.0 %
+ 15.3 %
Net Asset Value
140.3 €
Asset Under Management
217 M €
Market
Emerging markets
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). The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.

Carmignac Portfolio EM Debt 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

Abdelak Adjriou

Fund Manager

Alessandra Alecci

Fund Manager

Market environment

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

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

  • In the Eurozone, on the other hand, signs of recovery kept coming with the publication of better GDP figures for the first quarter.

  • A split appeared on the fixed income market, with US yields falling and the US dollar weakening, but euro yields rising.

  • Emerging markets ended the month slightly lower in local currency, but higher in hard currency.

  • May was also notable for elections in a number of countries (India, South Africa and Mexico), which seem to have increased regional volatility.

Performance commentary

  • The Fund ended the month with a stable performance, slightly ahead of its reference indicator.

  • The main catalysts were external debt, especially Pemex, Ivory Coast and Ukraine.

  • The impact of our currency component was neutral. Whereas the US dollar and Brazilian real had a negative effect, our strategy of buying the Chilean peso and selling the Chinese yuan worked in our favour.

  • At a local bond level, our long positioning on Chinese and Mexican debt has a positive influence.

Outlook strategy

  • We raised the Fund’s modified duration, which exceeded 400 basis points at month-end.

  • For local debt, we still prefer countries like Mexico and Brazil where real short-term interest rates remain extremely high.

  • However, we took profits on our long Chinese positions.

  • At a currency level, the Fund remains long on the Brazilian real and Chilean peso. However, we further reduced our long stance on the US dollar.

  • The Fund continues to be long on emerging market debt denominated in hard currencies, especially within the EMEA region and Latin America.

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). Until 31/12/2023, the reference indicator was JP Morgan GBI – Emerging Markets Global Diversified Composite Unhedged EUR Index (JGENVUEG). Performances are presented using the chaining method.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 14/06/2024

Carmignac Portfolio EM Debt Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  31 May 2024.
Latin America38.0 %
Eastern Europe21.3 %
Europe14.6 %
Africa12.5 %
Asia5.1 %
Middle East4.6 %
Asia-Pacific2.5 %
North America1.5 %
Total % of bonds100.0 %
Latin America38.0 %
mxMexico
21.7 %
coColombia
5.7 %
République Dominicaine
3.7 %
Pérou
2.8 %
arArgentina
2.0 %
Ecuador
1.6 %
clChile
0.3 %
Brésil
0.2 %
crCosta Rica
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:  31 May 2024.
Modified Duration4.4
Yield to Maturity7.8 %
Average Coupon5.3 %
Number of Issuers57
Number of Bonds78
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

Abdelak Adjriou

Fund Manager

Alessandra Alecci

Fund Manager
The Fund is best suited for fixed income investors looking for higher returns than those offered by developed markets, by taking advantage of the emerging universe potential.

Abdelak Adjriou

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.