Calendar Year Performance 2014Calendar Year Performance 2015Calendar Year Performance 2016Calendar Year Performance 2017Calendar Year Performance 2018Calendar Year Performance 2019Calendar Year Performance 2020Calendar Year Performance 2021Calendar Year Performance 2022Calendar Year Performance 2023
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- 35.6 %
- 5.2 %
- 22.5 %
Net Asset Value
49.0 €
Asset Under Management
65 M €
Market
Emerging markets
SFDR - Fund Classification
Article
8
Data as of: 28 Mar 2024.
Data as of: 25 Apr 2024.
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.
Chinese markets were stable (+0.14% for the CSI 300 and +0.18% for the Hang Seng). Early in the month, the government announced it would be targeting 5% growth over the year and trying to cap the deficit at 3% of GDP, but its optimism failed to convince investors. China continues to face structural problems despite a slight improvement in certain economic indicators. For example, the NBS manufacturing PMI rose to 50.8 in March from 49.1 in February, and inflation of +0.7% put an end to five months of deflation. There was plenty of bad news on the geopolitical front. Firstly, US legislators presented a bill giving ByteDance six months to sell TikTok, failing which it will be banned in the United States to address national security concerns. A US Senate committee also put forward a bill that could prevent Chinese biotech companies from bidding for federal contracts.
Performance commentary
The Fund delivered a very good performance in March, beating its reference indicator. EHang was largely to thank. This flying taxi company published much better results for Q4 2023 (CNY 56.6m vs CNY 15.7m a year earlier). After being awarded an official Chinese safety certificate last year, EHang has started to sell its first models. Our portfolio also received a boost from Daqo Energy, which appreciated after posting 47.8% y/y growth in Q4 2023. Our consumer discretionary stocks such as JD.com, MINISO and Tencent Music Entertainment made some of the biggest contributions. Diversification towards Taiwan through exposure to stocks along the semiconductor chain also paid off. For example, Taiwan Semiconductor and Lotes made positive contributions. Tal Education and New Oriental Education soared in February but lost some ground in March.
Outlook strategy
Despite short-term volatility and the structural challenges facing the economy, we still have an optimistic view of Chinese equity markets. We are seeing a slight improvement in certain economic indicators. For example, the NBS manufacturing PMI rose to 50.8 in March from 49.1 in February, and inflation of +0.7% put an end to five months of deflation. Foreign demand is heading in the right direction too, and local government stimulus is starting to pay off. The economic transition towards industrial sectors (albeit at the expense of traditional growth-driving sectors such as real estate and the internet) is starting to have a positive effect on exports. However, China’s structural problems remain with domestic consumption barely moving, especially among the middle classes now that house prices have fallen and youth unemployment is high. Selectivity is essential. Our approach is centred around stock selection, with a particular focus on companies’ valuations and fundamentals. We feel sure that our approach, centred around a fundamental analysis and enterprise values, is the best way to generate positive long-term returns on Chinese markets. We remain convinced about the potential for China’s new economy, and in particular the secular trends that we are seeing in artificial intelligence, the green transition and healthcare. Moreover, Chinese authorities have reaffirmed their support for these industries in recent comments. Our portfolio is mostly positioned on companies that are leaders in their fields, and are generating high cash flows to sustain decent margins against the current backdrop of modest growth. We are also keeping significant exposure to Taiwan, mainly through companies along the semiconductor supply chain, which should benefit from the AI cycle. We strengthened our position in Taiwan Semiconductor and opened one in Lotes, which specialises in the design and manufacturing of precision electronic interconnect components and hardware such as CPU brackets.
The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager.
The information presented above is not contractually binding and does not constitute investment advice. Past performance is not a reliable indicator of future performance. Performance is shown net of fees (excluding any subscription fees payable to the distributor). Investors may lose some or all of their capital, as the capital in the UCI is not guaranteed. Access to the products and services presented herein may be restricted for some individuals or countries. Taxation depends on the situation of the individual. The risks, fees and recommended investment period for the UCI presented are detailed in the KIDs (key information documents) and prospectuses available on this website. The KID must be made available to the subscriber prior to purchase.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.
The information presented above is not contractually binding and does not constitute investment advice. Past performance is not a reliable indicator of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor), where applicable. Investors may lose some or all of their capital, as the capital in the UCI is not guaranteed. Access to the products and services presented herein may be restricted for some individuals or countries. Taxation depends on the situation of the individual. The risks, fees and recommended investment period for the UCI presented are detailed in the KIDs (key information documents) and prospectuses available on this website. The KID must be made available to the subscriber prior to purchase.). The reference to a ranking or prize, is no guarantee of the future results of the UCITS or the manager.
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Market environment
Chinese markets were stable (+0.14% for the CSI 300 and +0.18% for the Hang Seng). Early in the month, the government announced it would be targeting 5% growth over the year and trying to cap the deficit at 3% of GDP, but its optimism failed to convince investors. China continues to face structural problems despite a slight improvement in certain economic indicators. For example, the NBS manufacturing PMI rose to 50.8 in March from 49.1 in February, and inflation of +0.7% put an end to five months of deflation. There was plenty of bad news on the geopolitical front. Firstly, US legislators presented a bill giving ByteDance six months to sell TikTok, failing which it will be banned in the United States to address national security concerns. A US Senate committee also put forward a bill that could prevent Chinese biotech companies from bidding for federal contracts.