Fixed income strategies

Carmignac Portfolio Sécurité

Luxembourg SICAV sub-fundEuropean marketSRI Fund Article 8
Share Class

LU0992625243

Flexible, low duration solution to navigate European fixed income markets
  • Low duration euro fixed income Fund.
  • Flexible and active approach with a modified duration range from -3 to +4.
Asset Allocation
Bonds62.4 %
Other37.6 %
Data as of:  31 Dec 2024.
Risk Indicator
2/7
Recommended Minimum Investment Horizon
2 years
Cumulative Performance since launch
+ 37.7 %
+ 34.7 %
+ 17.1 %
+ 11.6 %
+ 7.5 %
From 25/11/2013
To 08/01/2025
Calendar Year Performance 2024
+ 1.7 %
+ 3.6 %
+ 2.3 %
- 0.2 %
+ 6.9 %
+ 3.8 %
+ 1.1 %
- 2.4 %
+ 6.4 %
+ 7.3 %
Net Asset Value
137.68 $
Asset Under Management
1 711 M €
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  8 Jan 2025.
​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. 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.

Carmignac Portfolio Sécurité fund performance

Take a look at the Fund's performance supported by our Fund managers’ market commentary and strategy insight.

Our monthly comments

Data as of:  31 Dec 2024.
Fund management team
[Management Team] [Author] Allier Marie Anne

Marie-Anne Allier

Fund Manager
[Management Team] [Author] Guedy Aymeric

Aymeric Guedy

Fund Manager

Market environment

  • December was marked by a normalisation of the interest rate environment, with German and US long rates rising by 28bp and 40bp respectively.- Investors revised their rate cut projections for 2025 following the US Federal Reserve meeting, which, despite cutting its key rate by -25bp, adopted a hawkish tone.- The European Central Bank also eased its deposit rate by -25bp to 3.0%, while remaining cautious about its future actions.- Activity remains buoyant across the Atlantic in terms of both employment and inflation data, with the core component remaining sticky at 3.3% over the year. Inflation has picked up in the eurozone to +2.3% from +2.0% previously, while core inflation remains anchored at +2.7% year-on-year.- It should be noted that inflationary momentum has also risen in Brazil and Japan, prompting the Brazilian central bank to raise its key rate by one point to 12.25%.

Performance commentary

  • The fund posted a positive performance, outperforming its reference indicator over the period.

  • In an environment marked by a general rise in interest rates, our short positions on German and French interest rates helped to limit its impact.

  • In addition, the portfolio benefited from its credit carry strategies, with a positive contribution from our financial sector bonds and hedges aimed at reducing our exposure to the riskiest part of the market.

  • Finally, the portfolio continues to benefit from our exposure to money market instruments and, to a lesser extent this month, from our selection of Collateralized Loan Obligations (CLOs).

Outlook strategy

  • The relative resilience of the economy, with consumption remaining robust, particularly in the services sector, and inflation continuing to fall gradually, should enable the ECB and, to a lesser extent, the US Federal Reserve to gradually continue their monetary easing.

  • However, given the political and geopolitical risks and the increasingly stretched valuations on some markets, the portfolio is maintaining a balanced positioning with a modified duration that has hovered around 1.5 over the period:

  • On the one hand, a significant allocation to credit, mainly invested in short-term, highly-rated corporate bonds and CLOs, which offer an attractive source of carry and a low beta relative to market volatility.

  • On the other hand, a short position on German rates, albeit reduced at the end of the period, with the market now incorporating an optimistic rate-cutting cycle against a backdrop of large issues on the primary market at the start of the year and uncertainty surrounding the new policy being pursued in the United States.

  • We are also retaining protection on the credit market (iTraxx Xover), with markets trading at tight levels in an uncertain geopolitical environment.

  • Finally, we have allocated part of the portfolio to money market instruments, which represent an attractive source of carry with limited risk.

Performance Overview

Data as of:  8 Jan 2025.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). Morningstar Rating™ :  © 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.Until 31 December 2020, the reference indicator was the Euro MTS 1-3 years. Performances are presented using the chaining method.The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Source: Carmignac at 09/01/2025

Carmignac Portfolio Sécurité Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  31 Dec 2024.
Europe86.2 %
North America6.6 %
Eastern Europe6.5 %
Asia-Pacific0.5 %
Latin America0.3 %
Total % of bonds100.0 %
Europe86.2 %
itItaly
18.4 %
esSpain
15.8 %
ieIreland
12.1 %
frFrance
11.1 %
gbUnited Kingdom
5.1 %
deGermany
4.8 %
Grèce
4.2 %
nlNetherlands
2.9 %
ptPortugal
2.0 %
Norvège
1.8 %
beBelgium
1.6 %
chSwitzerland
1.6 %
Suède
1.4 %
atAustria
1.4 %
adAndorra
0.8 %
dkDenmark
0.4 %
fiFinland
0.3 %
smSanMarino
0.3 %
Luxembourg
0.1 %

Key figures

Below are the key figures for the Fund, which will give you a clearer idea of the Fund's management and bond positioning.

Exposure Data

Data as of:  31 Dec 2024.
Modified Duration1.4
Yield to Maturity3.7 %
Average Coupon3.1 %
Number of Issuers169
Number of Bonds275
Average RatingA
Yield to Maturity (YTM) is the estimated annual rate of return expected on a bond if held until maturity and assuming all payments 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 FX carry and fees and expenses of the portfolio. The portfolio’s YTM is the weighted average individual bonds holdings' YTMs within the portfolio.

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Managers.
Fund Management Team
[Management Team] [Author] Allier Marie Anne

Marie-Anne Allier

Fund Manager
[Management Team] [Author] Guedy Aymeric

Aymeric Guedy

Fund Manager
For over 35 years, we have maintained our active and conviction-driven approach, while being able to adapt to different market configurations. This is what we want to continue offering to investors.
[Management Team] [Author] Allier Marie Anne

Marie-Anne Allier

Fund Manager
View Fund's characteristics

Related articles

Market Analysis15 April 2021English

Carmignac awarded across asset classes by Lipper 2021

1 minute(s) read
Find out more
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.