Calendar Year Performance 2014Calendar Year Performance 2015Calendar Year Performance 2016Calendar Year Performance 2017Calendar Year Performance 2018Calendar Year Performance 2019Calendar Year Performance 2020Calendar Year Performance 2021Calendar Year Performance 2022Calendar Year Performance 2023
-
-
-
-
-
+ 20.9 %
+ 10.8 %
+ 3.4 %
- 12.7 %
+ 10.9 %
Net Asset Value
140.0 €
Asset Under Management
1 384 M €
Market
Global market
SFDR - Fund Classification
Article
6
Data as of: 30 Apr 2024.
Data as of: 17 May 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.
Investors lowered their expectations of key rate cuts at the Federal Reserve this year, pushing up yields such as the US 2yr, which gained 34 bps over the month to pass the 5% mark. This readjustment happened gradually over April as inflation figures were particularly solid across the Atlantic. The consumer price index in particular surged to +3.5% y/y. The roots of inflation are keeping Fed members on their guard as retail sales and employment data point towards a no-landing scenario for the US economy. Desynchronisation continues with the planets aligning in the Eurozone where inflation eased further to +2.4% y/y, allowing the ECB to take a much more dovish tone. The economic recovery is more visible in leading indicators as well as growth figures, which are beating the consensus forecast. However, this uncoupling has not helped European yields, which have followed the same upward trajectory as their US equivalents. The 10-year Bund yield gained 29 bps in April. The geopolitical situation has deteriorated in the Middle East after Iran’s bombardment of Israel, fuelling risk aversion among investors as well as inflation, with commodity prices surging.
Performance commentary
The Fund’s absolute return was very positive, whereas that of its reference indicator was negative. Our portfolio benefitted from its main investment themes, whether investment grade or high yield, such as financials, energy, special cases and restructuring. Our collateralised loan obligations also had a positive effect.
Outlook strategy
We are still concentrating on our main investment themes through a selection of high yield bonds (e.g. in the energy and financial sectors), which are less sensitive to higher interest rates, and collateralised loan obligations (CLOs) with a variable-rate structure, limiting the negative effects of interest rate volatility and rising default rates. In these volatile conditions, we kept our credit market hedging strategies at 19% to protect the portfolio from the risk of further market dislocation, while focusing on alpha. After remaining low for several years due to the liquidity glut and low cost of capital, default rates will probably return to more normal levels, which we view as a catalyst likely to create real stand-out opportunities. The portfolio’s high carry (over 7%) and attractive credit valuations should mitigate short-term volatility and generate medium- and long-term performance.
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.
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Market environment
Investors lowered their expectations of key rate cuts at the Federal Reserve this year, pushing up yields such as the US 2yr, which gained 34 bps over the month to pass the 5% mark. This readjustment happened gradually over April as inflation figures were particularly solid across the Atlantic. The consumer price index in particular surged to +3.5% y/y. The roots of inflation are keeping Fed members on their guard as retail sales and employment data point towards a no-landing scenario for the US economy. Desynchronisation continues with the planets aligning in the Eurozone where inflation eased further to +2.4% y/y, allowing the ECB to take a much more dovish tone. The economic recovery is more visible in leading indicators as well as growth figures, which are beating the consensus forecast. However, this uncoupling has not helped European yields, which have followed the same upward trajectory as their US equivalents. The 10-year Bund yield gained 29 bps in April. The geopolitical situation has deteriorated in the Middle East after Iran’s bombardment of Israel, fuelling risk aversion among investors as well as inflation, with commodity prices surging.