Navigating a new monetary cycle with Carmignac Sécurité

Published on
3 July 2024
Read time
1 minute(s) read

After more than a decade of very low and even negative interest rates, the horizon has cleared for bonds and yields have become attractive once again. The gradual fall in Eurozone inflation has enabled the European Central Bank to start cutting its interest rates. What consequences for investors and what strategy should they adopt?

Marie-Anne Allier and Aymeric Guedy, co-Fund Managers of Carmignac Sécurité, explain the impact of current market conditions on the Fund, and describe their positioning for the quarters ahead:

With a yield to maturity of 4.7% today, versus 3.2% for its reference indicator1, the Fund is very well positioned to generate positive performance with managed volatility over the coming quarters and years.
[Management Team] [Author] Guedy Aymeric

Aymeric Guedy

Fund Manager, Analyst
Key points:

Bonds are returning to grace

Bonds made a comeback in late 2023 and stuck around in 2024, with yields not seen for decades. We are now in a cycle of interest rate cuts by central banks, but it does not mark the end of attractive yields on European fixed income markets.

Performance drivers for the coming quarters

Carry will be one of the main performance drivers. One of our strongest convictions is for credit. We are also actively managing interest rate risk so that we can adapt our position and navigate an environment that remains volatile.

When to invest in Carmignac Sécurité?

It’s always a good time to invest in Carmignac Sécurité if you’re looking for a conservative solution on a two-year horizon. The Fund’s flexibility has guided it through various market environments since 1989. It has all the tools required to keep fulfilling its mandate.
1Source: Carmignac, 30 April 2024. Yield to Maturity: Yield to Maturity (YTM) corresponds to the estimated annual rate of return expected on a bond assuming it is held until maturity and that all payments are 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 foreign exchange market carry nor fees and expenses of the portfolio. The portfolio’s YTM is the weighted average individual bonds holdings' YTMs within the portfolio. Reference Indicator: ICE BofA ML 1-3 year All Euro Government Index.

Would you like to know more on Carmignac Sécurité?

Flexible, low duration solution to navigate European fixed income marketsVisit the Fund page

Carmignac Sécurité AW EUR Acc

ISIN: FR0010149120
Recommended minimum investment horizon
2 years
Risk indicator*
2/7
SFDR - Fund Classification**
Article 8

*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **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.

Main risks of the fund

Interest Rate: Interest rate risk results in a decline in the net asset value in the event of changes in interest rates.Credit: Credit risk is the risk that the issuer may default.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.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.
The Fund presents a risk of loss of capital.

Fees

ISIN: FR0010149120
Entry costs
1,00% of the amount you pay in when entering this investment. This is the most you will be charged. Carmignac Gestion doesn't charge any entry fee. The person selling you the product will inform you of the actual charge.
Exit costs
We do not charge an exit fee for this product.
Management fees and other administrative or operating costs
1,11% of the value of your investment per year. This estimate is based on actual costs over the past year.
Performance fees
There is no performance fee for this product. 
Transaction Cost
0,24% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.

Performance

ISIN: FR0010149120
Carmignac Sécurité1.71.12.10.0-3.03.62.00.2-4.84.1
Reference Indicator1.80.70.3-0.4-0.30.1-0.2-0.7-4.83.4
Carmignac Sécurité+ 0.4 %+ 1.0 %+ 0.7 %
Reference Indicator- 0.5 %- 0.5 %- 0.1 %

Source: Carmignac at 28 Jun 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).

Related articles

Fixed Income Strategy18 June 2024English

Annual Dividends Distribution 2024 - Carmignac Credit 2027

1 minute(s) read
Find out more
Fixed Income Strategy30 April 2024English

Our Flagship Credit strategy best Fund in Europe by Lipper

1 minute(s) read
Find out more
Fixed Income Strategy18 April 2024English

Carmignac Sécurité: 35 years of regular returns and limited volatility

2 minute(s) read
Find out more

MARKETING COMMUNICATION. Please refer to the KID/prospectus of the Fund before making any final investment decisions. This document is intended for professional clients.
This document is intended for professional clients. This document may not be reproduced, in whole or in part, without prior authorisation from the management company. It does not constitute a subscription offer, nor does it constitute investment advice. The information contained in this document may be partial information and may be modified without prior notice. The decision to invest in the promoted fund should consider all its characteristics or objectives as described in its prospectus. The reference to a ranking or prize, is no guarantee of the future results of the UCITS or the manager. Carmignac Sécurité is a common fund in contractual form (FCP) conforming to the UCITS Directive under French law. 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 because of currency fluctuations. 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. Access to the Fund may be subject to restrictions regarding certain persons or countries. The Fund is not registered in North America, South America, Asia, or Japan. The Funds are registered in Singapore as a restricted foreign scheme (for professional clients only). The Fund has not been registered under the US Securities Act of 1933. The Fund may not be offered or sold, directly or indirectly, for the benefit or on behalf of a “U.S. person”, according to the definition of the US Regulation S and/or FATCA. The Fund presents a risk of loss of capital. The risks and fees are described in the KID (Key Information Document). The Fund’s prospectus, KID and annual reports are available at www.carmignac.com, or upon request to the Management Company. The KID must be made available to the subscriber prior to subscription.
• In Switzerland, the Fund’s prospectus, KID, and annual reports are available at www.carmignac.ch, or through our representative in Switzerland, CACEIS (Switzerland), S.A., Route de Signy 35, CH-1260 Nyon. The paying agent is CACEIS Bank, Montrouge, succursale de Nyon/Suisse, Route de Signy 35, 1260 Nyon. The KID must be made available to the subscriber prior to subscription. The Management Company can cease promotion in your country anytime. Investors have access to a summary of their rights in French, English, German, Dutch, Spanish, Italian at the following link “Summary of investor rights”): https://www.carmignac.com/en_US/article-page/regulatory-information-1788.