Carmignac Patrimoine: flexible management is (still) the watchword

The times are changing, and financial markets are no exception to the rule. Investors therefore have a crucial need for responsiveness to be able to adapt to and take full advantage of those changes.

Suppose someone had told you ten years back:

• that the United Kingdom would be leaving the European Union;

• that China would turn into “Big Brother” and its inhabitants would be using their smartphones to buy groceries;

• that surgical masks would be the new normal in 2020…

At Carmignac, our independence provides us the freedom to manage our portfolios in a flexible way, and thus to respond swiftly whenever necessary, to adapt and to re-invent ourselves. And we do so with a single goal in mind:

Serve our clients’ interests to the best of our ability

That investment philosophy can be summed up in one word: Patrimoine.

In an environment where German bond yields are negative, Microsoft, Facebook, Apple, Amazon and Alphabet (Google) account for over 20% of the S&P 500 and where China is well on its way to technological supremacy, wisely choosing where and when to invest is essential to protect your savings and achieve your long-term financial goals.

Rigorous portfolio construction that involves investing in China’s leading vaccine producer, the French luxury goods sector, US fintech companies, Romanian government debt and European bank credit – that’s something that only a flexible approach managed by experts can offer you.

That is precisely the mandate of Carmignac Patrimoine: delivering a turnkey solution for diversifying your investments. The Fund aims to mitigate fluctuating capital values while seeking attractive sources of return, using a flexible asset allocation strategy.

Carmignac Patrimoine invests in three main assets classes: global equities, bonds and currencies. Each definition is intentionally broad, ensuring the fund benefits from a comprehensive investment toolkit that allows us to fulfil the diversified mandate.

By combining our three performance drivers, we provide a long-term investment solution rooted in a conviction-driven approach and rigorous risk management.

The Covid-19 pandemic has served as a reminder to investors that while risks can hit hard and without warning, they can also set off new opportunities. This makes risk management a key but complex concept. The goal is not only to cushion the impact of market sell-offs, but also to exploit undervalued performance drivers.

To begin with, our risk management approach involves constructing a portfolio geared to the current market environment and able to weather market turbulence. It also consists of actively managing our equity, interest-rate and currency exposure, based on the asymmetry of the risks involved and possible market fragilities. Our ability to manage market risk – the cornerstone of our management style – was first put seriously to the test in 2002, then in 2008 and most recently since the Covid-19 crisis.

The Fund aims to outperform its reference indicator¹ over 3 years.

• Source: Carmignac, 18/06/20. For the share class A EUR Acc. Risk Scale from the KIID (Key Investor Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time.