Carmignac

Carmignac P. Emergents

September 2023

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Portfolio News

Performance - F EUR ACC shareclass - Cumulative returns (%)

09/2023YTD1 year3 years5 years
Carmignac P. Emergents+0.8%+7.1%+9.3%+1.3%+43.7%
Reference indicator*-0.2%+2.6%+3.4%+5.1%+12.8%

As of 29/09/2023. Carmignac Portfolio Emergents F EUR Acc (ISIN: LU0992626480).

*Reference indicator: MSCI EM NR USD) (Reinvested net dividends rebalanced quarterly). 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. The fund presents a risk of capital loss.

Market Review

  • Emerging markets were down slightly in September, impacted by the weakness of the Chinese economy.

  • China continued to face its difficulties, despite the announcement of new support measures, with the lowering of its reserve requirement ratio (RRR) by 25 basis points in order to improve the liquidity of the system. The PMI indices showed a slight stabilization of growth at low level (3.5-4%) thanks to export resilience and stabilization of housing market in Tier 1 cities.

  • In the wake of the decline in the Nasdaq index, emerging technology stocks also corrected over the period.

  • In Latin America, Brazil continued its rate cut cycle, reducing its reference interest rates by 50 basis points.

Performance Review

  • TOP 3 CONTRIBUTORS

    Excellent rebound of our top convictions in China (New Oriental, Miniso) and Brazil (Eletrobras).

    • NEW ORIENTAL (Cons. Disc.) - China

    • SEA (Communication) - Singapore

    • MINISO (Cons. Disc.) - China

  • TOP 3 DETRACTORS

    Weakness in our Asian tech names
    (S. Korea, Taiwan) after previous months’ solid performance.

    • LG CHEM (Electric vehicles) - Korea

    • JD.COM (Cons. Disc.) - China

    • VESTA (Industry) - Mexico

Notable portfolio moves

  • New positions: -

  • Reinforcements: Ehang (China), Sungrow (China), JD.com (China), SEA (Singapore)

  • Reductions: Miniso (China), Meituan (China), Eletrobras (Brazil)

  • Positions sold: -

  • Number of holdings: 35 (target range 35/55)

Positioning as of 29/09/2023

Carmignac

Breakdown of the fund by SDG alignment

Our portfolio is currently structured around 4 major socially responsible investment (SRI) themes that are central to our process:

Carmignac

Strategy reminder

  • INVESTMENT OBJECTIVES

    Performance objective:

    • The fund aims to outperform its reference indicator over a recommended investment horizon of 5 years.

    Sustainable objective:

    • 100% of investments (ex-cash holdings) in emerging companies that derive a substantial part of their revenues or capital expenditures from goods & services related to business activities which align positively with SDGs, or have operations aligned with SDGs (source: Factset)

    • Carbon intensity 50% lower than the ref. indicator (tons of CO2 per million USD revenues, converted to euros).

  • STRATEGY BENEFITS

    • A 8-year track record with Xavier Hovasse as lead PM, and Haiyan Li-Labbé nominated co-PM in January 2021, both with 20+ year industry experience in emerging markets.

    • A diversified portfolio, with a selective exposure to the Asian markets, an increased allocation to LatAm and through companies with attractive valuations.

    • SFDR Article 9 Strategy with a fully integrated SRI & low carbon approach, awarded the French government’s SRI label in 2019 and the Belgium Towards Sustainability label in 2020.

    • A portfolio with a positive environmental and social contribution, 100% of assets (excl. cash) invested in companies whose revenues or capital expenditures or operations are positively aligned United Nations Sustainable Development Goals (SDG) and a carbon footprint 64% lower than the MSCI EM NR Index (as of 29/09/2023).

    • High conviction and active approach: 35 to 55 stocks on average, high active share (>85%).

    • An effective portfolio diversification tool and a source of performance, proven by a solid track record (1st quartile among peers since launch), 4 Star Ranking, and a solid AUM of 1.2 bn € (end of September 2023).



* Reference indicator: MSCI EM (USD) (NR reconverted into EUR). 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. The fund presents a risk of capital loss. * F EUR Acc share class, ISIN code: LU0992626480. 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. Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell individual securities. Source: Carmignac, MSCI, Morningstar 31/05/2023 Carmignac Portfolio Emergents obtained the French and Belgian SRI Labels: https://www.lelabelisr.fr/en/ ; https://www.towardssustainability.be/ ; https://www.febelfin.be/fr Other investment restrictions apply. Please refer to the fund documentation for a complete description of the fund. 1 Sustainable Finance Disclosure Regulation (SFDR) 2019/2088. For more information please refer to EUR-lex.
* F EUR ACC share class. Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time.

  • Xavier Hovasse
    Fund Manager
    Head of Emerging Equities

    Xavier Hovasse is a Fund Manager and Head of Emerging Equities. Xavier joined Carmignac in 2008 as an analyst specialized in Latin America, and was appointed Fund Manager in 2011. Prior to that, he spent nine years at BNP Paribas Asset Management as an analyst and Manager of Emerging and Global equities. He graduated from ESCP-EAP Paris and is a CFA Charter holder since 2004.

  • Haiyan Li-Labbé
    Fund Manager

    Haiyan Li-Labbé is a Fund Manager with a focus on the Greater China markets within the Emerging Equities team. Haiyan joined Carmignac in 2011. She started her career in 2001 at Société Générale Investment Banking and was the responsible Analyst on Asian convertible bonds. Between 2004 and 2011, she was a Fund Manager and Head of Asian Projects at ADI Alternative Investments and OFI AM. Haiyan holds a Master’s degree in French from Beijing’s Foreign Languages University, and a Master’s degree from Ecole Supérieure de Commerce de Paris (ESCP).

Carmignac Portfolio Emergents

Grasping the most promising opportunities within the emerging universe

Visit the fund page

Carmignac Portfolio Emergents F EUR Acc

ISIN: LU0992626480

Recommended minimum investment horizon

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Main risks of the Fund

EQUITY: The Fund may be affected by stock price variations, the scale of which is dependent on external factors, stock trading volumes or market capitalization.

EMERGING MARKETS: Operating conditions and supervision in "emerging" markets may deviate from the standards prevailing on the large international exchanges and have an impact on prices of listed instruments in which the Fund may invest.

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.

Carmignac Portfolio Emergents F EUR Acc

ISIN: LU0992626480
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (YTD)
?
Year to date
Carmignac Portfolio Emergents F EUR Acc +6.45 % +3.92 % +1.73 % +19.76 % -18.22 % +25.53 % +44.91 % -10.29 % -14.35 % +9.79 % +5.16 %
Reference Indicator +11.38 % -5.23 % +14.51 % +20.59 % -10.27 % +20.61 % +8.54 % +4.86 % -14.85 % +6.11 % +12.59 %

Scroll right to see full table

3 Years 5 Years 10 Years
Carmignac Portfolio Emergents F EUR Acc -1.18 % +6.15 % +4.95 %
Reference Indicator +0.85 % +4.09 % +4.88 %

Scroll right to see full table

Source: Carmignac at 29/11/2024

Entry costs : We do not charge an entry fee. 
Exit costs : We do not charge an exit fee for this product.
Management fees and other administrative or operating costs : 1,32% of the value of your investment per year. This estimate is based on actual costs over the past year.
Performance fees : 20,00% when the share class overperforms the Reference indicator during the performance period. It will be payable also in case the share class has overperformed the reference indicator but had a negative performance. Underperformance is clawed back for 5 years. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years, or since the product creation if it is less than 5 years.
Transaction Cost : 0,37% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.
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Marketing communication. Please refer to the KID/KIID, prospectus of the fund before making any final investment decisions. This document is intended for professional clients.

This material may not be reproduced, in whole or in part, without prior authorisation from the Management Company. This material does not constitute a subscription offer, nor does it constitute investment advice. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice. This material has been provided to you for informational purposes only and may not be relied upon by you in evaluating the merits of investing in any securities or interests referred to herein or for any other purposes. The information contained in this material may be partial information and may be modified without prior notice. They are expressed as of the date of writing and are derived from proprietary and non-proprietary sources deemed by Carmignac to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Carmignac, its officers, employees or agents.

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.

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. The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager.

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.

Access to the Funds may be subject to restrictions regarding certain persons or countries. This material is not directed to any person in any jurisdiction where (by reason of that person’s nationality, residence or otherwise) the material or availability of this material is prohibited. Persons in respect of whom such prohibitions apply must not access this material. Taxation depends on the situation of the individual. The Funds are not registered for retail distribution in Asia, in Japan, in North America, nor are they registered in South America. Carmignac Funds are registered in Singapore as restricted foreign scheme (for professional clients only). The Funds have not been registered under the US Securities Act of 1933. The Funds 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 FATCA. The risks, fees and ongoing charges are described in the KID (Key Information Document). The KID must be made available to the subscriber prior to subscription. The subscriber must read the KID. Investors may lose some or all their capital, as the capital in the funds are not guaranteed. The Funds present a risk of loss of capital.

The Funds’ prospectus, KIDs, NAVs and annual reports are available at www.carmignac.com, or upon request to the Management Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. The French investment funds (fonds communs de placement or FCP) are common funds in contractual form conforming to the UCITS or AIFM Directive under French law.

  • In France, Luxembourg, Sweden: The risks, fees and ongoing charges are described in the KID (Key Information Document). The KID must be made available to the subscriber prior to subscription. The subscriber must read the KID. Investors may lose some or all their capital, as the capital in the funds are not guaranteed. The Funds present a risk of loss of capital. The Funds’ prospectus, KIDs, NAV and annual reports are available at www.carmignac.com, or upon request to the Management.

  • In the United Kingdom: the Funds’ respective prospectuses, 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 document was prepared by Carmignac Gestion, Carmignac Gestion Luxembourg or Carmignac UK Ltd. FP Carmignac ICVC (the “Company”) is an Investment Company with variable capital incorporated in England and Wales under registered number 839620 and is authorised by the FCA with effect from 4 April 2019 and launched on 15 May 2019. FundRock Partners Limited is the Authorised Corporate Director (the “ACD”) of the Company and is authorised and regulated by the FCA. Registered Office: Hamilton Centre, Rodney Way, Chelmsford, Essex, CM1 3BY, UK; Registered in England and Wales with number 4162989. Carmignac Gestion Luxembourg SA has been appointed as the Investment Manager and distributor in respect of the Company. Carmignac UK Ltd (Registered in England and Wales with number 14162894) has been appointed as a sub-Investment Manager of the Company and is authorised and regulated by the Financial Conduct Authority with FRN:984288.

  • In Switzerland: the prospectus, KIDs and annual report 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, Nyon Branch / Switzerland, Route de Signy 35, 1260 Nyon.

The Management Company can cease promotion in your country anytime. Investors have access to a summary of their rights in English on the following links: UK ; Switzerland ; France ; Luxembourg ; Sweden.