Carmignac Porfolio Unconstrained Global Bond

A UNIQUE FIXED INCOME FUND

Carmignac Portfolio Unconstrained Global Bond is a unique fixed income fund that implements interest rate, credit and currency strategies across the globe. Its unique style is characterised by a large degree of latitude on all segments, from a wide modified duration range to a broad investment universe with no geographical or sector constraints. This allows the Fund manager, Charles Zerah, to implement his long-term convictions and seize tactical opportunities.

Being unconstrained also goes hand in hand with risk management. It provides the freedom to avoid fragile assets and to flexibly adjust the exposures of the portfolio. This approach has proven successful during last year’s historic shift in interest rates and over the long term, as illustrated by above-average risk-adjusted returns*.

TACKLING DIFFERENT MARKET CONDITIONS

Carmignac Porfolio Unconstrained Global Bond

5-Year performance demonstrating competitive advantage

Carmignac Portfolio
Unconstrained Global Bond +22.21%
Reference Indicator(1) +11.10% Morningstar
Category average(2) +14.41%

Bull market
case study
Click to view details

Bear market
case study
Click to view details

Past performance is no guarantee of future results.
Performances are net of fees (excluding possible entrance fees charged by the distributor).

ROLLING PERFORMANCE

Carmignac Portfolio Unconstrained Global Bond A EUR Acc
JP Morgan Global Government Bond (EUR)
2 years Quartile 5 years Quartile
9.39% 1 22.21% 1
4.14% - 11.10% -

Calendar year performance

Carmignac Portfolio Unconstrained Global Bond A EUR Acc
JP Morgan Global Government Bond (EUR)
2016 2015 2014 2013 2012
+9.5% +3.3% +13.8% -4.7% +7.1%
+4.3% +8.5% +14.6% -8.6% -0.3%

"Our active and non-benchmarked approach enabled us to implement a conviction-driven allocation, centered on peripheral sovereign bonds and European financial credit."

Unconstrained approach to seize opportunities and implement convictions

With extensive support by the ECB as a result of weak growth in the Eurozone, we had strong convictions on peripheral sovereign bonds. Our substantial allocation to this asset class, deviating considerably from the reference indicator, proved to be rewarding over the period.

Our strong convictions were also centered on European financial credit, and specifically on subordinated debt, an asset class that benefited from structural improvements in the European banking sector, including de-risking, re-regulation and deleveraging.

However, it is unsurprising that a conviction-driven portfolio that relies on views driven by fundamental market analysis, was impacted by sudden, short-term movements in the market, largely driven by political concerns and market technicals. We do not want to overlook long-term opportunities just for the sake of reducing short-term volatility.

"Profiting from rising rates? Yes we can!"

A flexible approach to successfully manage the change in regime

The shift in market regime in 2016 provided the Fund with an opportunity to vividly demonstrate its truly flexible and active approach.

The first half of 2016 was marked by the Fund’s high modified duration, due to the risk of disinflation in many developed economies. Our significant allocation to dollar and yen to hedge against the risk aversion on financial markets also proved beneficial.

After the collapse in interest rates during the first half of the year, we substantially reduced the risks of our portfolio by reducing our overall modified duration, by shorting US and German rates, reducing allocation to European peripheral sovereign bonds and increasing our cash and cash equivalents.

The combination of an active, flexible and conviction-driven approach enabled the Fund to beat 95% of peers(2) in 2016 with a volatility of 4.6%

5-Year performance demonstrating competitive advantage



Graph

Past performance is no guarantee of future results.
Performances are net of fees (excluding possible entrance fees charged by the distributor).

Carmignac Portfolio Unconstrained Global Bond +22.21%
Reference Indicator(1) +11.10%
Morningstar Category average(2) +14.41%

ROLLING PERFORMANCE

Carmignac Portfolio Unconstrained Global Bond A EUR acc
JP Morgan Global Government Bond (EUR)
2 years Quartile 5 years Quartile
9.39% 1 22.21% 1
4.14% - 11.10% -

Calendar year performance

Carmignac Portfolio Unconstrained Global Bond A EUR acc
JP Morgan Global Government Bond (EUR)
2016 2015 2014 2013 2012
+9.5% +3.3% +13.8% -4.7% +7.1%
+4.3% +8.5% +14.6% -8.6% -0.3%

BULL MARKET CASE STUDY

"Our active and non-benchmarked approach enabled us to implement a conviction-driven allocation, centered on peripheral sovereign bonds and European financial credit."

Unconstrained approach to seize opportunities and implement convictions

With extensive support by the ECB as a result of weak growth in the Eurozone, we had strong convictions on peripheral sovereign bonds. Our substantial allocation to this asset class, deviating considerably from the reference indicator, proved to be rewarding over the period.

Our strong convictions were also centered on European financial credit, and specifically on subordinated debt, an asset class that benefited from structural improvements in the European banking sector, including de-risking, re-regulation and deleveraging.

However, it is unsurprising that a conviction-driven portfolio that relies on views driven by fundamental market analysis, was impacted by sudden, short-term movements in the market, largely driven by political concerns and market technicals. We do not want to overlook long-term opportunities just for the sake of reducing short-term volatility.

BEAR MARKET CASE STUDY

"Profiting from rising rates? Yes we can!"

A flexible approach to successfully manage the change in regime

The shift in market regime in 2016 provided the Fund with an opportunity to vividly demonstrate its truly flexible and active approach.

The first half of 2016 was marked by the Fund’s high modified duration, due to the risk of disinflation in many developed economies. Our significant allocation to dollar and yen to hedge against the risk aversion on financial markets also proved beneficial.

After the collapse in interest rates during the first half of the year, we substantially reduced the risks of our portfolio by reducing our overall modified duration, by shorting US and German rates, reducing allocation to European peripheral sovereign bonds and increasing our cash and cash equivalents.

The combination of an active, flexible and conviction-driven approach enabled the Fund to beat 95% of peers(2) in 2016 with a volatility of 4.6%

Diversify your fixed income portfolio

Combine Carmignac Sécurité with Carmignac Portfolio Unconstrained Global Bond

50% Carmignac Sécurité + 50% Carmignac Portfolio Unconstrained Global Bond
Carmignac Sécurité
Carmignac Portfolio Unconstrained Global Bond
Cumulative Performance Annualised performance Annualised volatility Sharpe Ratio
+16.50% 3.10% 3.83% 0.83
+11.20% 2.14% 1.38% 1.57
+36.03% 6.34% 7.55% 0.84

Select your optimal risk/return profile by combining two flexible and complementary fixed income funds

Carmignac
Sécurité
Carmignac Portfolio
Unconstrained Global Bond
Performance over 5 years
Carmignac Sécurité A EUR Acc
Carmignac Portfolio Unconstrained Global Bond A EUR Acc
50% + 50%
5 - year annualised volatility (%)
  • 0
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
5 - year annualised return (%)
  • 9
  • 8
  • 7
  • 6
  • 5
  • 4
  • 3
  • 2
  • 1
  • 0
Carmignac Sécurité A EUR Acc
Carmignac Portfolio Unconstrained Global Bond A EUR Acc
50% + 50%
3 - year annualised volatility (%)
  • 0
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
3 - year annualised return (%)
  • 9
  • 8
  • 7
  • 6
  • 5
  • 4
  • 3
  • 2
  • 1
  • 0
50% Carmignac Sécurité + 50% Carmignac Portfolio Unconstrained Global Bond

Volatility and annualised return as of 30/06/2017. Past performance is no guarantee of future results. Perfomances are net of fees (excluding possible entrance fees charged by the distributor).
This performance simulation is provided for informational purposes only. Carmignac cannot commit itself to future returns of its Funds as the performance is not guaranteed and may change in time. Investing in Carmignac mutual funds may entail a risk of capital loss. The amounts calculated by the various simulations proposed do not take into account the effect of inflation. This can lead to a depreciation of the valuation of the assets in the portfolio.

Investment strategy

Carmignac Portfolio Unconstrained Global Bond is an international fixed income UCITS fund that implements interest rate, credit and currency strategies across the globe. Its flexible and opportunistic style enables the Fund to implement a largely unconstrained and conviction-driven allocation. The Fund aims to outperform its reference indicator (JP Morgan GBI Global (Eur)), calculated with coupons reinvested, over a minimum recommended investment period of two years.

Risk Scale

MAIN RISKS OF THE FUND

CREDIT: Credit risk is the risk that the issuer may default.
CURRENCY: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency.
INTEREST RATE: Interest rate risk results in a decline in the net asset value in the event of a variation in interest rates.
DISCRETIONARY MANAGEMENT: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.

The Fund’s capital is not guaranteed.

*SRRI from the KIID (Key Investor Information Document): scale from 1 (lowest risk) to 7 (highest risk); category-1 risk does not mean a risk-free investment. This indicator may change over time.

Investment strategy

Carmignac Sécurité is a UCITS fund invested in bonds and other debt securities denominated in Euro. It seeks to outperform its reference indicator, the Euro MTS 1-3 years, over a 2-year investment horizon. Unlike short maturity funds, Carmignac Sécurité adopts a low duration stance and flexible approach in its quest to deliver steady returns.

Risk Scale

MAIN RISKS OF THE FUND

CREDIT: Credit risk is the risk that the issuer may default.
CURRENCY: Currency risk is linked to exposure to a currency other than the Fund's valuation currency.
INTEREST RATE: Interest rate risk results in a decline in the net asset value in the event of a variation in interest rates.
RISK OF CAPITAL LOSS: The portfolio does not guarantee or protect the capital invested. Capital loss occurs when a unit is sold at a lower price than that paid at the time of purchase.

The Fund’s capital is not guaranteed.

*SRRI from the KIID (Key Investor Information Document): scale from 1 (lowest risk) to 7 (highest risk); category-1 risk does not mean a risk-free investment. This indicator may change over time.

Composite portfolio risk/return profile
  • 100% Carmignac Sécurité +
    0% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +10.79%

  • Annualised performance

    2.07%

  • Annualised volatility

    1.34%

  • Sharpe Ratio

    1.60

  • 90% Carmignac Sécurité +
    10% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +11.94%

  • Annualised performance

    2.28%

  • Annualised volatility

    1.66%

  • Sharpe Ratio

    1.41

  • 80% Carmignac Sécurité +
    20% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +13.08%

  • Annualised performance

    2.49%

  • Annualised volatility

    2.13%

  • Sharpe Ratio

    1.20

  • 70% Carmignac Sécurité +
    30% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +14.22%

  • Annualised performance

    2.69%

  • Annualised volatility

    2.67%

  • Sharpe Ratio

    1.04

  • 60% Carmignac Sécurité +
    40% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +15.36%

  • Annualised performance

    2.90%

  • Annualised volatility

    3.24%

  • Sharpe Ratio

    0.92

  • 50% Carmignac Sécurité +
    50% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +16.50%

  • Annualised performance

    3.10%

  • Annualised volatility

    3.83%

  • Sharpe Ratio

    0.83

  • 40% Carmignac Sécurité +
    60% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +17.64%

  • Annualised performance

    3.30%

  • Annualised volatility

    4.43%

  • Sharpe Ratio

    0.76

  • 30% Carmignac Sécurité +
    70% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +18.79%

  • Annualised performance

    3.50%

  • Annualised volatility

    5.04%

  • Sharpe Ratio

    0.71

  • 20% Carmignac Sécurité +
    80% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +19.93%

  • Annualised performance

    3.70%

  • Annualised volatility

    5.65%

  • Sharpe Ratio

    0.67

  • 10% Carmignac Sécurité +
    90% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +21.07%

  • Annualised performance

    3.89%

  • Annualised volatility

    6.26%

  • Sharpe Ratio

    0.63

  • 0% Carmignac Sécurité +
    100% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +22.21%

  • Annualised performance

    4.09%

  • Annualised volatility

    6.88%

  • Sharpe Ratio

    0.60

  • 100% Carmignac Sécurité +
    0% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +3.34%

  • Annualised performance

    1.10%

  • Annualised volatility

    1.27%

  • Sharpe Ratio

    1.02

  • 90% Carmignac Sécurité +
    10% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +5.07%

  • Annualised performance

    1.66%

  • Annualised volatility

    1.63%

  • Sharpe Ratio

    1.14

  • 80% Carmignac Sécurité +
    20% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +6.81%

  • Annualised performance

    2.22%

  • Annualised volatility

    2.12%

  • Sharpe Ratio

    1.14

  • 70% Carmignac Sécurité +
    30% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +8.54%

  • Annualised performance

    2.77%

  • Annualised volatility

    2.67%

  • Sharpe Ratio

    1.11

  • 60% Carmignac Sécurité +
    40% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +10.27%

  • Annualised performance

    3.31%

  • Annualised volatility

    3.23%

  • Sharpe Ratio

    1.09

  • 50% Carmignac Sécurité +
    50% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +12.01%

  • Annualised performance

    3.85%

  • Annualised volatility

    3.80%

  • Sharpe Ratio

    1.07

  • 40% Carmignac Sécurité +
    60% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +13.74%

  • Annualised performance

    4.38%

  • Annualised volatility

    4.36%

  • Sharpe Ratio

    1.05

  • 30% Carmignac Sécurité +
    70% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +15.47%

  • Annualised performance

    4.91%

  • Annualised volatility

    4.92%

  • Sharpe Ratio

    1.04

  • 20% Carmignac Sécurité +
    80% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +17.21%

  • Annualised performance

    5.43%

  • Annualised volatility

    5.48%

  • Sharpe Ratio

    1.03

  • 10% Carmignac Sécurité +
    90% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +18.94%

  • Annualised performance

    5.95%

  • Annualised volatility

    6.02%

  • Sharpe Ratio

    1.02

  • 0% Carmignac Sécurité +
    100% Carmignac Portfolio Unconstrained
    Global Bond

  • Cumulative Performance

    +20.67%

  • Annualised performance

    6.46%

  • Annualised volatility

    6.56%

  • Sharpe Ratio

    1.01

Investment strategy

Carmignac Portfolio Unconstrained Global Bond is an international fixed income UCITS fund that implements interest rate, credit and currency strategies across the globe. Its flexible and opportunistic style enables the Fund to implement a largely unconstrained and conviction-driven allocation. The Fund aims to outperform its reference indicator (JP Morgan GBI Global (Eur)), calculated with coupons reinvested, over a minimum recommended investment period of two years.

Risk Scale

MAIN RISKS OF THE FUND

CREDIT: Credit risk is the risk that the issuer may default.
CURRENCY: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency.
INTEREST RATE: Interest rate risk results in a decline in the net asset value in the event of a variation in interest rates.
DISCRETIONARY MANAGEMENT: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.

The Fund’s capital is not guaranteed.

*SRRI from the KIID (Key Investor Information Document): scale from 1 (lowest risk) to 7 (highest risk); category-1 risk does not mean a risk-free investment. This indicator may change over time.

Investment strategy

Carmignac Sécurité is a UCITS fund invested in bonds and other debt securities denominated in Euro. It seeks to outperform its reference indicator, the Euro MTS 1-3 years, over a 2-year investment horizon. Unlike short maturity funds, Carmignac Sécurité adopts a low duration stance and flexible approach in its quest to deliver steady returns.

Risk Scale

MAIN RISKS OF THE FUND

CREDIT: Credit risk is the risk that the issuer may default.
CURRENCY: Currency risk is linked to exposure to a currency other than the Fund's valuation currency.
INTEREST RATE: Interest rate risk results in a decline in the net asset value in the event of a variation in interest rates.
RISK OF CAPITAL LOSS: The portfolio does not guarantee or protect the capital invested. Capital loss occurs when a unit is sold at a lower price than that paid at the time of purchase.

The Fund’s capital is not guaranteed.

*SRRI from the KIID (Key Investor Information Document): scale from 1 (lowest risk) to 7 (highest risk); category-1 risk does not mean a risk-free investment. This indicator may change over time.

Fund details

Carmignac Porfolio Unconstrained Global Bond
Fund details

Luxembourg SICAV Sub-Fund

Investment strategy

Carmignac Portfolio Unconstrained Global Bond is an international fixed income fund that implements interest rate, credit and currency strategies across the globe. Its flexible and opportunistic style enables the Fund to implement a largely unconstrained, conviction-driven allocation and swiftly adapt, when necessary, to fully exploit opportunities in all market conditions. The Fund aims to outperform its reference indicator (JP Morgan GBI Global (Eur)), over a minimum recommended investment period of two years.


CHARLES ZERAH

Fund Manager

the fund's main risks

CREDIT: Credit risk is the risk that the issuer may default.

INTEREST RATE: Interest rate risk results in a decline in the net asset value in the event of changes in interest rates.

CURRENCY: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency, either through direct investment or the use of forward financial instruments.

DISCRETIONARY MANAGEMENT: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.

The Fund's capital is not guaranteed.