Fixed income strategies

Carmignac Portfolio Credit

Luxembourg SICAV sub-fundGlobal 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
Monthly FactsheetKID
Asset Allocation
Bonds95.7 %
Other4.3 %
Data as of:  31 Oct 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 47.1 %
0.0 %
+ 18.6 %
+ 3.1 %
+ 12.3 %
From 31 Jul 2017
To 14 Nov 2024
Calendar Year Performance 2023
-
-
-
+ 1.8 %
+ 1.7 %
+ 20.9 %
+ 10.4 %
+ 3.0 %
- 13.0 %
+ 10.6 %
Net Asset Value
147.08 €
Asset Under Management
1 626 M €
Market
Global market
SFDR - Fund Classification

Article

6
Data as of:  14 Nov 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. 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.
Fixed income strategiesCarmignac Portfolio Credit
Fixed income strategiesCarmignac Portfolio Credit
Share Class

LU1623762843

Overview

Characteristics & Risks

Performance

Portfolio

Documents

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 Oct 2024.
Fund management team
[Management Team] [Author] Verle Pierre

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager
[Management Team] [Author] Deneuville Alexandre

Alexandre Deneuville

Fund Manager

Market environment

  • US growth continues to gravitate above its historical average at +2.8% in the third quarter, benefiting from resilient domestic demand.- All the indicators point to greater resilience in the US economy, while inflation has also shown resilience, with a smaller-than-expected fall in the headline component to +2.4% YoY and a reacceleration in core inflation to +3.3% YoY.- The low point now seems to be behind us in the eurozone, as indicated by the stronger-than-expected rebound in GDP growth of +0.4% in the third quarter in the zone, on the back of more favourable momentum in Germany and France.- The European Central Bank cut its key rate by a further 25bp this month. This decision comes against a backdrop of headline inflation in the region at a 3-year low, contrasting with core inflation and the service component of inflation, which are still above the ECB's target at +2.7% and +3.9% respectively.- This environment of resilient growth has pushed yields higher, with the US 10-year gaining +50bp and its German counterpart +27bp. Risk appetite also paused, with credit spreads widening by +3bp on the Itraxx Xover index over the month.

Performance commentary

  • The Fund delivered a negative performance in absolute terms in October, slightly down on its performance indicator in an environment of sharply accelerating interest rates and slightly widening credit spreads.- Our issuer selection once again made a positive contribution to the Fund's performance, particularly the main investment themes, such as financial bonds and the energy sector.- On the other hand, a special situation in our portfolio made a negative contribution to performance following unfavourable news.- Finally, we continue to benefit from our collateralized loan obligations (CLOs), which are performing steadily.

Outlook strategy

  • We continue to focus on our core investment themes through a selection of high yield bonds, energy, financials and our selection of CLOs (collateralized loan obligations).- In addition, in this volatile environment, we are maintaining our market hedging strategies at over 20%, to protect the portfolio against the risk of further market disruption, while focusing on alpha.- Indeed, after years of weakness due to abundant liquidity and a low cost of capital, default rates should return to more normal levels, which we see as a catalyst that should create real idiosyncratic opportunities.- Finally, the portfolio's high carry (over 6.9%) and attractive credit valuations should mitigate short-term volatility and help generate medium- to long-term returns.

Performance Overview

Data as of:  14 Nov 2024.
View Performance in detail
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). ​Morningstar Rating™ :  © YYYY 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 18/11/2024

Carmignac Portfolio Credit Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  31 Oct 2024.
Europe71.4 %
Latin America9.0 %
North America8.8 %
Eastern Europe3.5 %
Asia3.0 %
Africa2.2 %
Middle East2.1 %
Total % of bonds100.0 %
Europe71.4 %
frFrance
12.7 %
gbUnited Kingdom
11.9 %
ieIreland
10.7 %
itItaly
7.6 %
Grèce
4.1 %
esSpain
4.0 %
Suède
3.0 %
atAustria
2.9 %
nlNetherlands
2.9 %
deGermany
2.7 %
chSwitzerland
2.6 %
Norvège
2.3 %
beBelgium
1.7 %
ptPortugal
1.1 %
fiFinland
1.1 %
dkDenmark
0.2 %
View Portfolio allocation

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 Oct 2024.
Modified Duration3.6
Yield to Maturity6.9 %
Average Coupon7.6 %
Number of Issuers231
Number of Bonds309
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
[Management Team] [Author] Deneuville Alexandre

Alexandre Deneuville

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

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All analysis
View characteristics and risks
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.
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.