Fixed income strategies

Carmignac Portfolio Sécurité

SICAVEuropean marketSRI Fund Article 8
Share Class

LU0992625243

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
Bonds77 %
Other23 %
Data as of:  30 Apr 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
2 years
Cumulative Performance since launch
+ 31.5 %
+ 29.2 %
+ 16.9 %
+ 6.9 %
+ 8.2 %
From 25/11/2013
To 23/05/2024
Calendar Year Performance 2023
+ 2.0 %
+ 1.7 %
+ 3.6 %
+ 2.3 %
- 0.2 %
+ 6.9 %
+ 3.8 %
+ 1.1 %
- 2.4 %
+ 6.4 %
Net Asset Value
131.5 $
Asset Under Management
1 419 M $
Market
European 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). The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.

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 Apr 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

Investors lowered their expectations of key rate cuts at the Federal Reserve this year, pushing up yields such as the US 2yr, which gained 34 bps over the month to pass the 5% mark. This readjustment happened gradually over April as inflation figures were particularly solid across the Atlantic. The consumer price index in particular surged to +3.5% y/y. The roots of inflation are keeping Fed members on their guard as retail sales and employment data point towards a no-landing scenario for the US economy. Desynchronisation continues with the planets aligning in the Eurozone where inflation eased further to +2.4% y/y, allowing the ECB to take a much more dovish tone. The economic recovery is more visible in leading indicators as well as growth figures, which are beating the consensus forecast. However, this uncoupling has not helped European yields, which have followed the same upward trajectory as their US equivalents. The 10-year Bund yield gained 29 bps in April. The geopolitical situation has deteriorated in the Middle East after Iran’s bombardment of Israel, fuelling risk aversion among investors as well as inflation, with commodity prices surging.

Performance commentary

With interest rates experiencing upside pressures and spreads on the riskiest segment of the credit market widening, our combination of lower duration on core debt and exposure to the most defensive segments of the credit market meant the Fund’s performance was only slightly negative, and better than that of its reference indicator. Our allocation to short-dated, highly rated corporate and financial bonds with attractive carry limited the impact of higher interest rates in February. However, the portfolio was affected by its long positions on the short end of the European yield curve. The portfolio’s selection of collateralised loan obligations and exposure to money market instruments continued to have a positive impact.

Outlook strategy

We steadily increased the portfolio’s duration from 2 to 2.4 in April, strengthening our position on the short end of the European curve and adding to our steepening strategy as the market lowered its expectation of rate cuts in 2024, predicting fewer than three at month-end. In this scenario of a soft landing for the European economy, mainly thanks to an improvement in real income and to inflation gradually moving back towards the ECB’s target, paving the way for an initial rate cut in June, the portfolio’s modified duration remains moderate at around 2.4, mainly involving inflation and curve steepening strategies, and a significant credit allocation. We still view credit, which accounts for nearly two thirds of our portfolio, as an attractive performance driver from a buy-and-hold perspective, and are keeping some tactical hedging given the valuation levels now reached. Our exposure is concentrated on short-dated investment grade issues, with financials, energy and CLOs our three strongest convictions. The portfolio’s average yield was around 4.7% at month-end, at the top of its 10-year range, and this should drive performance over the year ahead.

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.Until 31 December 2020, the reference indicator was the Euro MTS 1-3 years. Performances are presented using the chaining method.The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Source: Carmignac at 26/05/2024

Carmignac Portfolio Sécurité Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Apr 2024.
Europe75.4 %
North America14.3 %
Eastern Europe9.0 %
Asia-Pacific1.0 %
Latin America0.3 %
Total % of bonds100.0 %
Europe75.4 %
itItaly
17.3 %
esSpain
13.6 %
ieIreland
11.0 %
frFrance
9.1 %
nlNetherlands
4.4 %
deGermany
3.3 %
Grèce
2.7 %
gbUnited Kingdom
2.6 %
chSwitzerland
2.1 %
Norvège
1.7 %
ptPortugal
1.6 %
Suède
1.5 %
beBelgium
1.2 %
atAustria
1.1 %
adAndorra
0.8 %
dkDenmark
0.4 %
fiFinland
0.3 %
smSanMarino
0.3 %
Iceland
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 Apr 2024.
Modified Duration2.4
Yield to Worst4.3 %
Yield to Maturity4.6 %
Average Coupon3.1 %
Number of Issuers160
Number of Bonds252
Average RatingA-

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
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.