Montreal, Canada

If you invest or live in the eurozone, then look no further than Paris based Gestion Carmignac for a portion of your assets. There isn’t a better risk adjusted product for your EUR.

Carmignac ranks as one of France’s largest investment management companies and also holds the title to many performance awards since 1989, including its flagship stock and bond fund called Carmignac Patrimoine A.

The Fund, or Sicav as they’re coined in France, has gained a cumulative 565% in EUR since 1989 compared to just 150% for the sector, according to Morningstar. That makes Carmignac Patrimoine #1 over the last 21, 10, 5 and 3 years in the balanced fund category in the European offshore fund industry.

I discovered this gem of a fund a few years ago while doing research at a Paris library. I then subsequently began investing in Carmignac for my Euro based investors two years ago – and the results have been pretty impressive.

The Carmignac Patrimoine Sicav is a balanced fund holding 39% in global stocks (one-third of this position in emerging markets), 53% in global bonds and 18.2% in cash. The Manager has remained defensive over the past 12 months still harboring a high cash reserve. In 2008, the Fund gained one basis point in EUR, or 0.01%.

I especially like the fixed-income allocation, which is highly diversified with major market corporate bonds at 28% of assets followed by 8.7% for emerging market government bonds, 8.6% in major market sovereign debt and 7.6% in emerging market corporate bonds. Bonds maturing within five years represent 80% of the Fund’s assets.

The only caveat for investors is that Carmignac, like all offshore domiciled mutual funds, isn’t available to U.S. investors. Only a tax-deferred offshore variable annuity can own this product and, even then, an American policyholder can’t direct the asset allocation.

The EUR will probably survive the ongoing sovereign debt crisis in Europe. I still think the single currency is heading to par or at least close to par versus the American dollar over the next 12-18 months, but should nevertheless remain a viable currency provided the Germans and the French remain in monetary union. If that’s true and if you have some funds parked in EUR earning next to nothing in cash accounts then consider Carmignac Patrimoine.