Fixed income strategies

Carmignac Portfolio Credit

Luxembourg SICAV sub-fundGlobal marketArticle 6
Share Class

LU2020612904

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
Bonds90.3 %
Other9.7 %
Data as of:  31 Dec 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 31.5 %
0.0 %
+ 27.7 %
+ 9.7 %
+ 10.2 %
From 16/08/2019
To 09/01/2025
Calendar Year Performance 2024
-
-
-
-
+ 2.8 %
+ 12.3 %
+ 3.9 %
- 11.3 %
+ 12.6 %
+ 9.9 %
Net Asset Value
131.47 $
Asset Under Management
1 675 M €
Market
Global market
SFDR - Fund Classification

Article

6
Data as of:  9 Jan 2025.
​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.

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

Pierre Verlé

Head of Credit, co-Head of Fixed Income, Fund Manager

Market environment

  • December was marked by a normalisation of the interest rate environment, with German and US long rates rising by 28bp and 40bp respectively.- Investors revised their rate cut projections for 2025 following the US Federal Reserve meeting, which, despite cutting its key rate by -25bp, adopted a hawkish tone.- The European Central Bank also eased its deposit rate by -25bp to 3.0%, while remaining cautious about its future actions.- Activity remains buoyant across the Atlantic in terms of both employment and inflation data, with the core component remaining sticky at 3.3% over the year. Inflation has picked up in the eurozone to +2.3% from +2.0% previously, while core inflation remains anchored at +2.7% year-on-year.- Credit markets were cautious in December, with credit spreads widening by +2bp on the Itraxx Main index and +15bp on the Itraxx Xover index.

Performance commentary

The Fund delivered a positive performance in both absolute and relative terms in December, despite an unfavourable market environment for credit assets combining rising interest rates and widening credit spreads.- Our stock 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.- We continue to benefit from the bulk of new issuers on the primary credit market offering attractive valuations.- Finally, we maintain our exposure to the collateralized loan obligation (CLO) segment, which is performing steadily.

Outlook strategy

  • We continue to focus on our core investment themes through a selection of high yield bonds, energy, financials and our CLO selection.- In addition, in this volatile environment, we are maintaining our market hedging strategies for around 20% of the fund's net assets, in order to protect the portfolio against the risk of further market disruption, while focusing on alpha.- Indeed, after years of low levels 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.J38- Finally, the portfolio's high carry (over 6.7%) and attractive credit valuations should mitigate short-term volatility and help generate medium- to long-term returns.

Performance Overview

Data as of:  9 Jan 2025.
​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 10/01/2025

Carmignac Portfolio Credit Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  31 Dec 2024.
Europe69.9 %
North America10.0 %
Latin America9.9 %
Eastern Europe3.3 %
Asia2.7 %
Africa2.3 %
Middle East1.9 %
Total % of bonds100.0 %
Europe69.9 %
frFrance
13.2 %
gbUnited Kingdom
11.2 %
ieIreland
11.1 %
itItaly
7.3 %
esSpain
4.4 %
Grèce
4.3 %
atAustria
4.1 %
chSwitzerland
2.7 %
Suède
2.4 %
Norvège
1.8 %
beBelgium
1.8 %
nlNetherlands
1.7 %
deGermany
1.6 %
fiFinland
1.2 %
ptPortugal
1.2 %
Jersey
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 Dec 2024.
Modified Duration3.3
Yield to Maturity6.8 %
Average Coupon6.3 %
Number of Issuers225
Number of Bonds303
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

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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.