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Carmignac’s Fixed Income Fund range

Surfing the economic cycle: discover the power of a flexible long-term approach

Flexibility can make all the difference when navigating the various stages of the economic cycle. At Carmignac, for more than 30 years now our independence has allowed us the freedom to implement a truly active approach, enabling us to seek out investment opportunities wherever they may be.


This mindset is fully reflected in our range of fixed income Funds. They embrace a fundamentally flexible approach underpinned by a rigorous risk management framework and have been designed to adapt to different market configurations, be they bullish or bearish.

FIVE COMPLEMENTARY FUNDS, ONE UNIQUE PHILOSOPHY

All our fixed income Funds share the same philosophy: an active, global and non-benchmarked investment approach relying on high flexibility in managing exposures to the different segments of the fixed income universe:

Flexible allocation

An active management of exposures through a range of dedicated tools.

Global approach

A broad and diversified investment universe.

Non-benchmarked management

Allocation not constrained by a benchmark.

Our range consists of five complementary investment solutions, designed to cater to different investor profiles depending on their risk appetite. Thereby, the Funds differ in terms of investment universe, process and performance drivers:

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Risk-reward positioning and investment universe of the Funds in our range

Source: Carmignac, 21/06/2022. The matrix showing our fixed income fund range is provided for illustrative purposes only and is based on projections. Each Fund’s position within this matrix depends on its risk profile, its investment universe and the main investment guidelines described in its Key Investor Information Document (KIID). Potential Returns are forecasts. Performance forecasts are not a reliable indicator of future performance. Risk level based on 52-week volatility average of the Funds since 31/07/17 (launch date of Carmignac Portfolio Credit). For illustrative purpose only, do not take into account investors’ specific individual circumstances and must not be interpreted as investment advice.

Whether through interest rate, credit or currency strategies, within developed or emerging markets, this range has been created to meet the different needs of investors, depending on their investment objectives or their tolerance to volatility.

DEEP DIVE INTO THE FUNDS

CARMIGNAC SÉCURITÉ

Carmignac Sécurité invests mainly in low duration bonds denominated in euros or hedged against currency risk and seeks to seize opportunities in European markets while limiting volatility.

  • A flexible approach with an active management of modified duration (from -3 to +4).
  • Limited exposure to high yield credit securities and a minimum average rating of investment grade.
  • Disciplined risk management including both financial and extra-financial criteria
    (SFDR classification**: Article 8).

Who is this Fund intended for?
Investors looking for a flexible solution that is relatively conservative in order to weather Europe’s financially repressive environment.
Recommended investment horizon: 2 years

Discover the Fund page

CARMIGNAC PORTFOLIO FLEXIBLE BOND

Carmignac Portfolio Flexible Bond is an international fund implementing interest rate and credit strategies across the world. The Fund captures opportunities on fixed income markets while systematically hedging the currency risk.

  • A fixed income allocation solution combining top-down analysis with bottom-up selection.
  • A dynamic management of modified duration (from -3 and +8) to benefit from both rising and falling interest rates.
  • Disciplined risk management including both financial and extra-financial criteria criteria
    (SFDR** classification: Article 8).

Who is this Fund intended for?
Investors looking for a core allocation solution aiming to outperform fixed income markets with a volatility in line with market levels.
Recommended investment horizon: 3 years

Discover the Fund page

CARMIGNAC PORTFOLIO GLOBAL BOND

Carmignac Portfolio Global Bond is an international fund looking to benefit from multiple performance drivers within the fixed income universe by implementing interest rate, credit and currency strategies.

  • A wide range of performance drivers both in developed and emerging markets.
  • A broad modified duration range (from -4 to +10) and no geographic or sector constraints.
  • Disciplined risk management including both financial and extra-financial criteria criteria
    (SFDR classification**: Article 8).

Who is this Fund intended for?
Investors with higher volatility tolerance looking for bond performance drivers at a time when yields are low.
Recommended investment horizon: 3 years

Discover the Fund page

CARMIGNAC PORTFOLIO CREDIT

Carmignac Portfolio Credit is an international fund implementing opportunistic credit strategies across global markets.

  • Access to the entire credit universe for maximum flexibility.
  • Seeking an optimal risk/return profile over a full credit cycle.
  • A rigorous selection of issuers: opportunities under consideration are subjected to an in-depth analysis.

Who is this Fund intended for?
Investors looking to energise their portfolios with a versatile solution to navigate volatile credit markets.
Recommended investment horizon: 3 years

Discover the Fund page

CARMIGNAC PORTFOLIO EM DEBT

Carmignac Portfolio EM Debt takes a socially responsible investment approach to invest in local debt, external debt and currencies in emerging markets.

  • Access to a variety of fixed income performance drivers in emerging markets.
  • An investment process combining top-down, bottom-up and ESG analyses.
  • A sustainability objective seeking to make a positive contribution to society and the environment
    (SFDR classification**: Article 9).

Who is this Fund intended for?
Investors looking for higher yields by taking advantage of the opportunities offered by the emerging universe in a sustainable way, and looking for proper risk management to invest in this asset class.
Recommended investment horizon: 3 years

Discover the Fund page

EXPERTISE COVERING THE WHOLE SPECTRUM OF THE FIXED INCOME UNIVERSE

Since Carmignac’s foundation in 1989, our fixed income management team has grown year after year. Today, it is composed of experienced managers and analysts covering a wide range of strategies, regions and asset classes.

Our Funds are therefore able to draw on the team’s overall expertise as well as the complementary know-how offered by each of its members in all segments of the fixed income universe: global fixed income, European fixed income, credit and emerging markets. Our Fund managers and analysts work hand in hand to build optimal asset allocation strategies to suit each portfolio’s distinct risk/return profile.

EXPERIENCE BUILT UP OVER MANY YEARS

of experience in fixed income markets.

of total assets under management invested in fixed income, corresponding to over 23 billion euros*.

fixed income Fund managers and analysts with an average of 17 years of experience.

Source: Carmignac, 31/05/2022. (1) This includes 24% (8.3 billion euros) of cash and cash equivalents.

Rose Ouahba, Head of the Fixed Income team

I built the team with an emphasis on one core value: entrepreneurial spirit. We all share the same long-term vision and operate as a team with the aim of providing the best service for our clients

OUR LATEST ARTICLES ON FIXED INCOME

Carmignac P. Flexible Bond: Letter from the Fund Managers

Find out our views and positioning on the Fund for the second quarter of 2022.

Read more

Carmignac P. Global Bond: Letter from the Fund Manager

Find out our views and positioning on the Fund for the second quarter of 2022.

Read more

Carmignac P. Credit : Letter from the Fund Manager

Find out our views and positioning on the Fund for the second quarter of 2022.

Read more

Main risks of the Funds

Carmignac Sécurité


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.

Carmignac Portfolio Flexible Bond


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. 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. EQUITY: The Fund may be affected by stock price variations, the scale of which is dependent on external factors, stock trading volumes or market capitalization.

Carmignac Portfolio Global Bond


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.

Carmignac Portfolio Credit


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. LIQUIDITY: Temporary market distortions may have an impact on the pricing conditions under which the Fund might be caused to liquidate, initiate or modify its positions. 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.

Carmignac Portfolio EM Debt


EMERGING MARKETS: Operating conditions and supervision in "emerging" markets may deviate from the standards prevailing on the large international exchanges and have an impact on prices of listed instruments in which the Fund may invest. 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. CREDIT: Credit risk is the risk that the issuer may default.

The Funds present a risk of loss of capital.

*A EUR Acc share classes – Carmignac Sécurité : AW EUR Acc share class. 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. **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.

GLOSSARY

• Non-benchmarked: portfolio construction is a result of Fund manager views and market analysis with no bias to any benchmark. • Volatility: range of price variation of a security, fund, market or index, which enables the measurement of risk over a given period. It is determined using the standard deviation obtained by calculating the square root of the variance. The variance is obtained by calculating the average deviation from the mean, which is then squared. The greater the volatility, the greater the risk.• Duration: a bond’s duration is the period beyond which interest rate variations will no longer affect its return. The duration is like a discounted average lifetime of all flows (interest and capital).• Modified duration: a bond’s modified duration measures the risk attached to a given change in the interest rate. Modified duration of +2 means that for an instantaneous 1% rate increase, the portfolio’s value would drop by 2%.• High Yield: a loan or bond rated below investment grade because of its higher default risk. The return on these securities is generally higher. • Investment Grade: a loan or bond that rating agencies have rated AAA to BBB-, generally indicating relatively low default risk. • Top-down investing: an investment strategy which finds the best sectors or industries to invest in, based on analysis of the corporate sector as a whole and general economic trends (as opposed to bottom-up investing). • Bottom-up investing: Investment based on analysis of individual companies, whereby that company's history, management, and potential are considered more important than general market or sector trends (as opposed to top-down investing). • Credit cycle: a credit cycle describes the different phases of access to credit by borrowers. It alternates between periods of easily accessible funds to borrow due to low interest rates and periods of contraction where lending rules are more restrictive and interest rates are higher.

Source: Carmignac, 21/06/2022 . This is a marketing communication. This video 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 video may be partial information and may be modified without prior notice. 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 on the following link (paragraph 6): https://www.carmignac.com/en_US/article-page/regulatory-information-1788. The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager. Morningstar Rating™: © 2022 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. Carmignac Sécurité is a common fund in contractual form (FCP) conforming to the UCITS Directive under French law. Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. 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. Access to the Funds may be subject to restrictions with regard to certain persons or countries. The Funds 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 Funds present a risk of loss of capital. The risk, fees and ongoing charges are described in the KIIDs (Key Investor Information Document). The Funds' respective prospectuses, KIIDs, NAV and annual reports are available at www.carmignac.com, or upon request to the Management Company. The KIIDs must be made available to the subscriber prior to subscription. • In the United Kingdom, the Funds’ respective prospectuses, KIIDs and annual reports are available at www.carmignac.co.uk, or upon request to the Management Company, or for the French Funds, at the offices of the Facilities Agent at BNP PARIBAS SECURITIES SERVICES, operating through its branch in London: 55 Moorgate, London EC2R. This material was prepared by Carmignac Gestion and/or Carmignac Gestion Luxembourg and is being distributed in the UK by Carmignac Gestion Luxembourg UK Branch (Registered in England and Wales with number FC031103, CSSF agreement • In Switzerland, the Fund’s respective prospectuses, KIIDs 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, Paris, succursale de Nyon/Suisse, Route de Signy 35, 1260 Nyon. The KIID must be made available to the subscriber prior to subscription.