Investment strategies for generating genuine profits from bond holdings

In the realm of global investment, Carmignac, a renowned French asset manager, has set its sights on emerging markets. Registration for upcoming webinars on topics such as Europe, capital market developments, and Asia is now open, providing an opportunity to delve deeper into this strategic focus.

Carmignac experts have identified a number of attractive emerging markets. India, with its strong digital and technological growth, stands out as a prime destination for IT outsourcing. Latin America, Eastern Europe, Emerging Asia, and Saudi Arabia, due to fiscal resilience and reforms under Vision 2030, also present promising opportunities.

Local currency bonds in these emerging markets are particularly attractive, according to Carmignac. Expected real yields above 3% make them an alluring prospect. Central banks in Latin America and Central Europe have already begun to lower interest rates, potentially leading to significant yield declines and price gains. However, the experts at Carmignac closely monitor risks, such as the potential for dollar appreciation or economic shocks that could affect emerging market currencies.

When selecting titles, Carmignac focuses on two main criteria: the issuer's risk must be more than compensated by the yield in the market, and the risk must be more than covered by yield and premiums. This approach ensures a balanced and strategic investment strategy.

All Carmignac strategies are characterised by maximum flexibility within their concept. This flexibility allows the company to adapt to market conditions and seize opportunities as they arise.

Sustainability plays an important role in Carmignac's investment strategies, particularly in the Carmignac Portfolio EM Debt. ESG factors are considered crucial in emerging markets to identify risks and manage them effectively.

At the start of the year, Carmignac was named the top portfolio manager among smaller firms by rating agency Scope. This recognition underscores the company's commitment to delivering high-quality investment strategies.

The Carmignac Portfolio Credit, managed by Pierre Verlé and Alexandre Deneuville, provides access to global credit markets. Currencies are not an active performance source for this portfolio.

Ingo Boxleitner, Business Development Director for Germany at Carmignac, stated that the company focuses on what it does best. With two-thirds of its assets held in bonds, Carmignac is well-positioned to capitalise on opportunities in the bond market.

Gergely Majoros, a member of Carmignac's investment committee, believes that emerging markets have developed well and offer positive real yields. However, he stresses that investing in emerging markets should not be done without careful consideration.

Details about particularly attractive countries and interest rate risk in emerging markets can be learned in the current webinar. For those interested in exploring the world of emerging market investments, this is an opportunity not to be missed.