A flexible, 'all in one' fixed income fund
Carmignac Portfolio
Global Bond
Abdelak Adjriou
Abdelak Adjriou is a Fund manager within Carmignac’s fixed income team. Abdelak joined Carmignac in September 2021. He began his career in 2001 as a Java and C ++ developer at IBM in Silicon Valley before joining HSBC Asset Management in 2005, where he successively held the positions of quantitative analyst and global bond fund manager in Paris from 2005 to 2013, then emerging markets fixed income fund manager in New York from 2013 to 2016. In 2016, he joined American Century Investment in London as global macro manager until 2021. Abdelak holds a Master's degree in computer science ESSI from the ENSI group in Sophia Antipolis and a Master's degree in stochastic calculus from the University of Jussieu Paris VII, known as “DEA de Mme Laure Elie”.
Julien Chéron
Julien Chéron is a Fund manager and Quantitative Analyst within the Fixed Income team. Julien entered Carmignac in 2009. Before, he worked at CDC Ixis between 2002 and 2006, at first in the Capital Markets entity where he was in charge of the risk management, specialized in equity derivatives. Then, he joined the Corporate & Investment Banking entity as a quantitative analyst, specialized in equity and credit derivatives. In 2006, he joined Anakena Finance as Risk Manager. Julien holds a Master's degree in Applied Mathematics and a Master's degree in Financial statistics and random variable modeling from the UPMC University, Paris.
CARMIGNAC PORTFOLIO GLOBAL BOND
FUND MANAGERS
JP Morgan Global Government Bond Index (EUR)
JNUCGBIG
14 December
2007
A truly flexible and opportunistic approach: the wide modified duration range (from -4 to +10) offers the Fund a large degree of latitude, which allows it to swiftly adapt to changing scenarios.
A conviction-driven, non-benchmarked philosophy: portfolio construction is the result of Fund Managers' views and extensive market analysis with no bias to any benchmark.
Access to a wide range of performance drivers: the Fund implements interest rate, credit and currencies strategies in both developed and emerging markets, according to the macroeconomic cycle.
Launch Date
Assets under management
Reference indicator
Morningstar category
Bloomberg ticker
Download factsheet
For more details, download the Fund’s monthly factsheet
1. Source: Carmignac, 30/09/2022. Morningstar category: Morningstar Direct © 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.
Fund’s Morningstar rating
1
Neque porro quisquam est qui dolorem ipsum quia dolor
See the presentation
Register now
Home
Article
Presentation
Video
Contact
in association with
Contact us
Find out more
Carmignac’s time-tested and highly active approach has helped it to buck this year’s fixed income bear market and aims to help investors meet the challenges of slowing global growth, persistent inflation and ongoing market uncertainty. The key elements are a truly global and flexible style with the ability to take net short positions and a wide range of performance drivers spanning the full spectrum of rates, credit and currencies. This combines with an opportunistic and active unconstrained approach based on fundamental bottom-up bond research with a tactical allocation overlay.
For more information on the Fund and Carmignac’s approach, please click below:
Carmignac Portfolio Global Bond
782
m
€
Marketing Communication Professionals only
Bond investing in a new inflationary world
Read the article
Terms
Privacy
Cookies
Main risks of 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. The Fund presents a risk of loss of capital.
*A 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.
Marketing communication. Please refer to the KIID/prospectus of the fund before making any final investment decisions.
. 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 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. Carmignac Portfolio Global Bond is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). 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. Access to the Fund may be subject to restrictions with regard to certain persons or countries. The Fund is not registered in North America, nor in South America. 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, fees and ongoing charges are described in the KIID (Key Investor Information Document). The Fund's prospectus, KIIDs, NAV and annual reports are available at www.carmignac.com or upon request to the Management Company. • In Switzerland, the Fund’s prospectus, 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, Montrouge, succursale de Nyon / Suisse, Route de Signy 35, 1260 Nyon. The KIID must be made available to the subscriber prior to subscription. • In the United Kingdom, the Fund’s prospectus, 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 of 10/06/2013). • In Belgium, this document has not been submitted to the FSMA for validation. This document is intended for professional clients. This document is published by Carmignac Gestion S.A., a portfolio management company approved by the Autorité des Marchés Financiers (AMF) in France, and its Luxembourg subsidiary Carmignac Gestion Luxembourg, S.A., an investment fund management company approved by the Commission de Surveillance du Secteur Financier (CSSF), pursuant to section 15 of the Luxembourg Law of 17 December 2010. “Carmignac” is a registered trademark. “investing in your interest” is a slogan associated with the Carmignac trademark. This document does not constitute advice on any investment or arbitrage of transferable securities or any other asset management or investment product or service. The information and opinions contained in this video do not take into account investors’ specific individual circumstances and must never be interpreted as legal, tax or investment advice. The information contained in this video may be partial and could be changed without notice. This document may not be reproduced in whole or in part without prior authorisation.
Sky-high inflation and volatility spell exciting times for global bond funds
Watch the video
PREV
next
This year marked the beginning of a structural shift to a high-inflation regime that will change the way investors approach fixed income for the next decade, according to Abdelak Adjriou and Julien Chéron
In an exceptionally difficult year for fixed income investors, Carmignac Portfolio Global Bond has proved resilient compared to its reference indicator. The fund’s unconstrained approach has been vital to its relative outperformance, according to co-managers Abdelak Adjriou and Julien Chéron. Adjriou cites three main factors that have helped this year. The team quickly identified that inflation was rising so kept modified duration low, and they were early in recognising that US dollar exposure would be the best way to compensate for duration risk in the portfolio. The third factor, Adjriou says, was the dynamic balancing of these two elements: ‘For us, it’s important to know how much modified duration we have relative to dollar exposure. We manage this actively to ensure we don’t have more duration than dollar exposure in beta terms.’ He also notes that, in line with their cautious outlook, the team avoided credit until recently, which has helped them to outperform peers who were long credit risk. ‘We can hold up to 50% of the portfolio in high yield, but this year we foresaw that the Fed would be hawkish, which would be negative for risk assets.’ The recent addition of a small credit exposure is tactical: with spreads on high yield at about 600 basis points, the managers see value but remain bearish overall. ‘The Fed is being driven by core inflation and wage growth. Wage growth in the US is currently 6%, which is not compatible with the Fed’s mandate of 2% core inflation, so it will have to keep hiking until wage growth goes down. So far, there are no signs of that. Until we see it happening, we think the Fed will continue to tighten – which is why we are still cautious on credit. But even in a bear market, we try to capture alpha by trading around the rallies,’ he says.
This is typical of the team’s approach: as a pure global macro fixed income fund ranging across the spectrum of fixed income assets, the balance between credit, government bonds and currencies is a subject of constant scrutiny and review. ‘The top-down is vital to us, and we formulate this in consultation with the wider Carmignac team, combining our analysis with theirs to define the macro view that informs our asset allocation,’ Chéron, the fund’s co-manager, says – noting that the asset allocation has historically accounted for about 70% of the fund’s overall return. Adjriou joined Carmignac in September 2021, having previously run global macro fixed income funds at American Century and HSBC. ‘It has been easy to integrate here because the top-down, bottom-up approach is what I’ve done throughout my career,’ he says. But the overall backdrop for fixed income investors is now completely different from what has prevailed over the past 20 years, he believes. ‘We are only one year in, but I think we’re heading into a structurally higher inflation environment that could persist for the next decade,’ he says. This has huge implications for bonds: it no longer makes sense to have a traditional balanced portfolio of risk assets hedged by government bonds, as the negative correlation between the two relies on a stable inflation regime, he adds. In this new inflationary world, a highly active fund that gives currency exposure such as Carmignac Portfolio Global Bond makes more sense than ever, he says. ‘We believe the dollar is taking over government bonds’ safe-haven status. This year the dollar was among the very few asset classes to actually perform and this allowed us to balance our risk budget. A manager with the ability to exploit that, and take advantage of dynamic asset allocation and tactical opportunities, will be important going forward.’
Although portfolio duration remains low overall, the team have started to add a little in the US. ‘We think real rates of 1.6% in the US – the highest they’ve been for 40 years – are attractive. We have also taken advantage of high real rates in some emerging market countries that are ahead of the curve in their hiking cycle, such as Brazil and Mexico. But we still have no duration exposure in Europe,’ Adjriou says. The overall mix of assets remains vital. In line with the house view that a US recession is approaching, the team have started to increase exposure to traditional ‘defensive’ currencies: the dollar, Swiss franc and yen.
"It no longer makes sense to hedge a traditional balanced portfolio of risk assets with government bonds, as the negative correlation between the two relies on a stable inflation regime"
Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled.
welcome to
Berlin 2022
Download presentation
*A 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. Marketing communication. Please refer to the KIID/prospectus of the fund before making any final investment decisions. 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 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. Carmignac Portfolio Global Bond is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). 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. Access to the Fund may be subject to restrictions with regard to certain persons or countries. The Fund is not registered in North America, nor in South America. 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, fees and ongoing charges are described in the KIID (Key Investor Information Document). The Fund's prospectus, KIIDs, NAV and annual reports are available at www.carmignac.com or upon request to the Management Company. • In Switzerland, the Fund’s prospectus, 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, Montrouge, succursale de Nyon / Suisse, Route de Signy 35, 1260 Nyon. The KIID must be made available to the subscriber prior to subscription. • In the United Kingdom, the Fund’s prospectus, 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 of 10/06/2013). • In Belgium, this document has not been submitted to the FSMA for validation. This document is intended for professional clients. This document is published by Carmignac Gestion S.A., a portfolio management company approved by the Autorité des Marchés Financiers (AMF) in France, and its Luxembourg subsidiary Carmignac Gestion Luxembourg, S.A., an investment fund management company approved by the Commission de Surveillance du Secteur Financier (CSSF), pursuant to section 15 of the Luxembourg Law of 17 December 2010. “Carmignac” is a registered trademark. “investing in your interest” is a slogan associated with the Carmignac trademark. This document does not constitute advice on any investment or arbitrage of transferable securities or any other asset management or investment product or service. The information and opinions contained in this video do not take into account investors’ specific individual circumstances and must never be interpreted as legal, tax or investment advice. The information contained in this video may be partial and could be changed without notice. This document may not be reproduced in whole or in part without prior authorisation.
Carmignac’s Abdelak Adjriou reveals why fixed income is at a turning point and why he prefers US duration in his strategy in a behind-the-scenes interview with Frank Talbot, Head of Investment Research at Citywire.
Sky-high inflation and volatility spell
exciting times for global bond funds
Soaring inflation and stagnant growth may not be the usual cocktail of preferences for fund managers, but for Abdelak Adjriou, they signal interesting times ahead. ‘We see volatility as an opportunity,’ he says. ‘Up until 2021, we experienced persistent low inflation, and stock markets were going up supported by low real rates. Now, we are at a turning point.’ In terms of how the co-Fund manager of the Carmignac Portfolio Global Bond Fund evaluates his holdings, he says the prospect of a recession makes the United States seem most interesting. ‘In the US we think that real rates are high enough to bring down that recession, so, we like US duration. In Europe real rates are still negative and the energy crisis is still feeding inflation. Inflation is still going up. So, we are more cautious in terms of duration for Europe.’ Listen to his interview above.
