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Carmignac

Fixed Income Strategies: Positioning during the New Wave

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In this “lower rate for longer” environment, find out the positioning of our fund:

FP Carmignac Unconstrained Global Bond


Higher overall modified duration which stands close to 8.3 and limited currency risk. The Fund’s average YTM stands at 3.35% now with a BBB+ average rating. 1

  • Currency component: Cautious positioning favoring the Euro and a light short exposure to the USD, as the US Covid-19 wave in the Midwest and the uncertainties could generate some volatility on the greenback. We are also maintaining a net short position on the CAD due to weak macroeconomic fundamentals and the lack of carry while we are maintaining a long position on both the CNH & AUD as both currencies are linked to Chinese growth. Fund’s main FX exposure: EUR 103% / USD -10% / AUD 8% / CAD -8% / IDR 5% / CNH 3% / Others -1%.

  • Rates component:

o Reinforced long duration strategy with a diversified exposure to core rates between the US & Australia. o Decent allocation to EM external debt (Russia, Romania, Morocco) and Chinese local rates.

  • Credit component: Long IG and more modestly HY. Physical allocation to some idiosyncratic names where we are well paid for the fundamental cost of risk on both primary and secondary markets. Tactical higher credit markets beta thanks to a short position on Xover CDS index (short indices CDS = long credit risk).


    Visit the Fund's page:
FP Carmignac Unconstrained Global Bond

FP Carmignac Global Bond A GBP ACC

ISIN: GB00BJHPJ035

Recommended minimum investment horizon

2years

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Main risks of the Fund

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 presents a risk of loss of capital.

1 Source: Carmignac, 30/10/2020.

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This document is intended for professional clients. This is an advertising document. This document may not be reproduced, in whole or in part, without prior authorisation from the management company. This document does not constitute a subscription offer, nor does it constitute investment advice. Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. The Funds are common funds in contractual form (FCP) conforming to the UCITS Directive under French law.The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged. 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 with regard to certain persons or countries. The Fund is not registered in North America, in South America, in Asia nor is it registered in Japan. The Funds are registered in Singapore as 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 KIID (Key Investor Information Document). The Fund's prospectus, KIIDs and annual reports are available at www.carmignac.com, or upon request to the Management Company. The KIID 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, 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 of 10/06/2013).